National Insurance & Stamp Duty For Landlords

If I look firstly at National Insurance, there may be a requirement to pay Class 2 National Insurance if you are deemed to be running a property business. HMRC will see you as running a property business if this is your primary job and you let more than one property, or own more than one […]

Capital Gains Tax & Properties

Landlords are required to pay capital gains tax when they sell a property if it has increased in value from its original cost. You are allowed to deduct from the proceeds any improvements to the property, providing they are capital in nature (see earlier blog) and have not already been deducted against rental income. Revenue […]

Landlords – What’s The Issue With Mortgage Interest Tax Relief?

Back in April 2017, the taxation rules changed in relation to the amount of mortgage interest deduction a Landlord can claim against profits from renting a property. The rules basically contained a restriction on the amount of mortgage interest which can be claimed over four tax years. This restriction also applies to interest on loans […]

Basic Taxation Rules For Landlords

Q: Do I need to pay income tax on my rental profits? A: Yes – if your income from property is over the £1,000 threshold/allowance Q: What is the £1,000 property allowance? A: This was introduced back in April 2017 and if your combined rental income, before expenses is under £1,000, then there is no […]

Let’s Talk About Allowable Expenses?

Allowable expenses can become a little complicated but if you are able to understand the basis upon which HMRC view and categorise an expense claim, then this will assist you to process these. There is a basic rule for allowable expenses which is concerned with their nature and whether in law, the expense is either […]

New Rent-A-Room Rules

HMRC have now proposed new legislation to limit the circumstances in which rent a room relief can be claimed. This article explains when and how the new restrictive rules will apply. To explain, rent a room relief allows a person to rent all or part of their home to a lodger and they can receive […]

What Is The Real Limit Of Tax Free Home Working Payments?

If you work from home, your company can provide tax and national insurance free help in many different ways. What are these ways? Homeworking Costs: if you look at the HMRC website and related publications, you will see that the maximum tax and national insurance free amount your company can pay for you working from […]

making tax digital for vat

Making Tax Digital For VAT – A Notice Has Been Published!

VAT Notice 700/22 Making Tax Digital for VAT was published on 13th July 2018, alongside two other supporting documents dealing with Making Tax Digital for Business and a related Software Suppliers Report. It is important to be aware that HMRC have the authority to issue Making Tax Digital legislation by way of these notices and […]

Landlords Have Now Been Added To The Making Tax Digital Pilot

At the end of May 2018 HM Revenue & Customs has extended its Making Tax Digital for its business pilot to include landlords as well as self-employed individuals (although not yet partnerships). So if you have a single buy-to-let or a portfolio of properties you can now opt to join the trial for Making Tax […]

What Are Director’s Loans & How Do They Work For Tax?

A loan from your company can be a useful tool but there are two tax charges which can apply where your company lends money to you as a director and if you control 5% or more of the company’s ordinary shares.  These are also known as Director’s Loans. The first is a temporary charge on […]