income tax

Don’t pay for the taxman’s blunders

Rebecca Atkinson — Mon, 13 Oct 2008 17:25:21 +0100

Falling foul of the taxman can be an expensive business. “I had a client who was filing his tax return online,” says Sharon Nash, chief executive of tax specialist Simpson Burgess Nash. “For the previous two years he’d completed all the boxes and got a nice little payout.

Tax rebate for 22 million people

Rebecca Atkinson — Wed, 03 Sep 2008 10:03:51 +0100

Around 22 million workers are set to receive an extra £60 in their pay packets for September, as new tax measures come into force this month.

Reduce your tax bill with salary sacrifice

Chris Thomas — Mon, 07 Jul 2008 09:49:17 +0100

In financially fraught times, asking your employer to pay you less might seem like shooting yourself in the foot. However, so-called ‘salary sacrifice’ schemes can actually be an effective way of giving your finances a boost and feathering your nest.

Tax change set to hurt 18 million families

Rebecca Atkinson — Wed, 21 May 2008 11:12:29 +0100

Millions of families will find themselves worse off in two years' time if the government fails to extend last week’s one-off income tax cut, a new report has warned.

The study, by the Institute of Fiscal Studies (IFS), claims that once the £600 increase in personal allowances for basic rate taxpayers concession ends in 2009, 18 million families will find themselves worse off by £150 a year.

Thousands now facing a higher rate of income tax

Rebecca Atkinson — Wed, 14 May 2008 11:28:43 +0100

Moves to compensate people hit by the axed 10p tax rate will push thousands more people onto a higher rate of income tax, experts have warned.

Chancellor Alistair Darling announced on Wednesday that in order to help low-income households hit by the abolished 10p tax rate, he would increase personal allowances by £600 for the tax year 2008/09. To avoid the move benefiting those paying a higher rate of tax, Darling also slashed the higher tax rate threshold by £600 which, when combined with the increase in personal allowances, brings the threshold to £34,800.

Darling announces plan to compensate 10p tax victims

Rebecca Atkinson — Tue, 13 May 2008 17:58:47 +0100

Basic rate taxpayers will see their personal allowances increase by £600 this year, under measures announced by chancellor Alistair Darling to compensate those hit by the 10p tax rate axing.

The move follows fierce criticism that the decision to scrap the 10p tax rate in last year’s Budget would hit the UK’s lowest earners the hardest.

Tax changes at a glance

Rebecca Atkinson — Mon, 07 Apr 2008 15:13:50 +0100

The new tax year has brought in a host of tax reforms. Here is the Moneywise guide to the changes impacting your personal finances this tax year.

ISAs

The most popular tax change is likely to be higher allowances for ISAs. The annual limit on saving through ISAs is now £7,200, of which up to £3,600 can be saved as cash. If you choose to invest the maximum amount in cash, then you can only invest £3,600 in stocks and shares.

Buy-to-let landlords facing tax crackdown

Rebecca Atkinson — Fri, 22 Feb 2008 17:28:02 +0000

The taxman is believed to be planning a major crackdown on buy-to-let landlords who have failed to declare their rental income.

PKF Accountants & Business Advisers says HM Revenue and Customs has already sent warning letters to hundreds of buy-to-let landlords about taxes on their undeclared rents. As well as receiving backdated tax bills, offending landlords could also face fines for unpaid taxes dating back six years.