Changes to capital allowance
The writing-down allowance (WDA) for capital assets will be lowered from April 2026 and a new first year allowance is introduced Currently, companies can claim full expensing to deduct 100% of the cost of new and unused qualifying assets from their taxable profits. The annual investment allowance (AIA) also provides 100% tax relief on up […]
High value council tax surcharge
From April 2028 residential properties valued at £2m or more will attract a new high value council tax surcharge Announced in the Autumn Budget, eligible owners (rather than occupiers) of properties identified as being valued £2m or more by the Valuation Office will pay this recurring annual surcharge on top of their existing council tax. […]
Loan charge settlement opportunity
The Chancellor has announced significant and welcome changes for individuals facing tax bills under the loan charge The loan charge was introduced in 2019 to tackle ‘disguised remuneration’ schemes, where workers were paid through loans instead of salary to avoid paying income tax and national insurance. If these loans remained unpaid by 5.4.19 they were […]
Income tax increases
The Chancellor will add two percentage points to the rates of tax paid on income received from dividends, savings and property If you receive dividends; interest and other savings; or income from a property you rent out as a sole trader landlord you will see an increase in the amount of tax you have to […]
Salary sacrifice pensions
Many employers offer salary sacrifice schemes enabling employees to give up some of their salary in exchange for an equivalent employer’s contribution into their pension If you sacrifice some of your salary to your pension, the amount you give up is not counted as taxable income so you do not pay tax on it. This […]
Pay the high income child benefit charge via PAYE
Taxpayers can use HMRC’s new online service to register for the high income child benefit charge to be collected automatically from their payslip Since the high income child benefit charge (HICBC) was introduced, taxpayers have had to choose between opting out of child benefit payments or registering for self assessment to pay the charge. In […]
Electric vehicle excise duty
If you drive an electric or plug-in hybrid car you will have to pay a new mileage-based charge from April 2028 The electric vehicle excise duty (eVED) will be charged on top of the current vehicle excise duty charge paid by all vehicles. The charge will equal 3p per mile for fully electric cars and […]
Understanding simple assessments
If you owe income tax that cannot be collected automatically via PAYE, such as tax on bank interest or the state pension, HMRC may send you a simple assessment notice This letter shows how much tax HMRC believe you owe based on information they hold. It is important to check the figures against your own […]