As always, there’s a lot going on in the world of contracting. We’re keeping you up to date with all of the latest developments in the industry.
Paper Tax Deadline Approaching
The deadline to submit the paper tax return for the 2016/17 financial year is 31st October 2017. To report income, claim tax reliefs and make any outstanding repayments, you will need to complete the SA100 form.
You may also need to complete additional information, including:
•employees or company directors (SA102)
•self-employment (SA103S or SA103F)
•business partnerships (SA104S or SA104F)
•property income (SA105)
•foreign income or gains (SA106)
•capital gains (SA109)
What do I need?
In order to complete your paper tax return, you will need:
•forms P60, P45 and P11D
•profit and loss account
•personal pension contributions certificates
•gift aid donations
Calculating your bill
Once you’ve submitted your paper tax return by the deadline, HMRC will calculate the amount of tax you need to pay and a payment on account for the 2017/18 tax year.
If you owe less than £3,000 for the 2016/17 tax year, HMRC can collect the outstanding tax from your wages or pension from 6th April via your PAYE tax code, but only if your return is submitted by the deadline.
Buy to Let Regulations Fuel Rent Rises
A new study by Your Move has revealed that landlords are increasing rent due to the introduction of buy-to-let tax regulations.
Rental prices on approximately 2,000 properties were analysed and found that the average rent in England and Wales rose by 3.1% in the past year to £874. The South West, however, saw a fall of 2.2% to an average £667 per month.
Wales saw the biggest rise in rent, with prices up 4.3% to £595. Other areas to experience average monthly rental increases of more than 3% in the past 12 months include:
•The South East – up 3.6% to £884
•The North West – up 3.1% to £630
The rent rises could be due to the recent tax changes affecting landlords such as the mortgage interest relief and 3% stamp duty tax. Tax changes have also impacted the supply of properties on the market, causing a fall in housing and causing rent prices to increase.
Sole Traders Exposed to Cash Crises
Insurer LV= surveyed 9,495 self-employed workers and discovered that 1 in 3 could not survive for more than 3 months if they lost their income. Almost half of self-employed people struggle to save any money each month, leaving them exposed to financial problems.
The results also revealed that monthly bills eat up the majority of wages for 62% of self-employed and sole traders are more likely to be hit by unexpected costs (33%) compared to the national average (28%). 28% of sole traders were concerned about not being about to work due to an accident and 29% were worried about becoming ill.
Finance Bill 2017-2019 Roundup
The government has published the Finance Bill 2017-19, containing a number of changes that will affect both savings and investors. Many of the changes in the Bill were expected in the April 2017 Budget but were withdrawn due to the June snap general election.
Most of the changes have now been instated, such as:
•the reduction of the money purchase annual allowance from £100,00 to £4,000
•abolishing permanent non-dom status to those living in the UK for years pay on tax on the same basis as UK based residents
Other measures were confirmed in the Bill, such as the annual dividend allowance being reduced from £5,000 to £2,000 from April 2018.
The pensions advice allowance will enable savers to access £500 from their pension savings tax-free for regulated financial advice. This can be done up to 3 times before the age of 55.
Businesses with turnover below the VAT registration threshold will no longer have to keep digital records until at least April 2020. Regulations on digital record keeping for VAT purposes will not take effect before 1st April 2019.
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