The Chartered Institute of Taxation (CIOT) is reminding landlords of residential properties that the first phase of the restriction of tax relief they get for mortgage interest to the basic rate of income tax, begins in April.
The LITRG is urging self-employed workers with very low profits to check their National Insurance record and make up any deficiencies before voluntary contributions become more expensive for them after April 2018.
The LITRG is concerned that questions remain about the imminent reduction in the money purchase annual allowance (MPAA) after confirmation in the Budget that it will go ahead and today’s publication of the consultation response document and Finance Bill clause.
The Finance Bill published today is the longest ever, at a mammoth 762 pages, say the Chartered Institute of Taxation. It beats the previous record holder, 2012’s 686 page Finance Bill by a significant margin.
A critical report that calls for a far more cautious approach by the Government to the roll-out of Making Tax Digital and a delay to the scheme from the planned 2018 to 2020, has been welcomed by the Association of Taxation Technicians (ATT), the Chartered Institute of Taxation (CIOT) and the Low Incomes Tax Reform Group (LITRG).
The Government’s U-turn over the National Insurance increase for the self-employed shows what can happen when Chancellors pull ‘rabbits’ out of the hat on Budget day without consulting or preparing the ground in advance, says the Chartered Institute of Taxation (CIOT).
LITRG welcomes the move to expand the current arrangements for free school transport to those children aged 11-16 attending selective secondary schools who receive free school meals or whose parents receive maximum working tax credit. This will be a valuable boost for many low earnings families whose children travel between 2 and 15 miles to reach their selective school.
In today’s Budget, the Chancellor has announced a green paper to examine markets that are not working efficiently or fairly. This examination must include the tax refund market say the tax campaigners, following a rise in correspondence to their mailbox from people who seem to have been misled into claiming their tax refund via a tax refund company.
Today’s Budget documentation confirms that the tax treatment of foreign pensions will be changed from 6 April 2017 so that it is more closely aligned with the UK’s domestic pension tax regime.This includes removing the rule under which currently only 90% of foreign pension income is charged to income tax. The LITRG is disappointed that this will mean not only an increased tax charge for affected pensioners but also a potential reduction in support for those who claim tax credits.
LITRG welcomes the announcement today that self-employed businesses (including landlords) with a turnover below the VAT threshold (£85,000 with effect from 1 April 2017) will not now be required to comply with HMRC’s Making Tax Digital (MTD) programme until April 2019.