What you need to know about changes to Inheritance Tax
Inheritance Tax (IHT) may not be on your mind, but when you have considerable savings and property to pass on, it’s a good idea to add IHT to your tax planning checklist.
In the past two years, HMRC has generated more revenue from Inheritance Tax than ever before, £5.3bn to be exact. This is thanks to rising house prices and that the tax authority has been closing down various loopholes. It may come as good news though for homeowners that there has been a boost to the residence nil-rate band, and Tax Agility is here to explain what that exactly means.
What’s the nil-rate band?
The Inheritance Tax threshold, also known as the nil-rate band, is frozen at £325,000 per person until 2021. This means no tax needs to be paid on assets (excluding property) passed to your descendants up to this value. Above this threshold, your estate will incur a tax of 40%.
An additional IHT allowance is in place for people who own property, and this is called the residence nil-rate band. Set at £100,000 per person in the past tax year, the threshold has been raised to £125,000 this month and will continue to rise by £25,000 every year until 2020/2021, to take into account rising property values. This means that your descendants will only need to pay tax on the inherited property if it is worth more than £125,000.
Married couples and civil partnerships
Your IHT allowance gets added to your partner’s allowance if you die before them. This means married couples and civil partners can pass on assets worth £650,000 completely tax-free. The same concept of doubling applies to the residence nil-rate band, giving couples a considerable tax break.
Inheritance Tax accountants
You can expect further changes to Inheritance Tax throughout the year as the Office for Tax Simplification has been urged to review the complex rules around Inheritance Tax on gifts. Tax Agility is keeping a close eye on the changes, and we’re happy to discuss what the new Inheritance Tax threshold could mean for you, your property, and those you wish to inherit it.
No one wants to leave a hefty IHT bill as part of their legacy. To speak with a professional accountant to discuss ways you can maximise the value of your estate with Inheritance Tax planning, contact us today on 020 8108 0090 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.
Making Tax Digital pilot is now open to all self-employed UK taxpayers
Join the government’s pilot and start sending regular income tax updates through HMRC’s Making Tax Digital system, if you’re self-employed.
The tax authority’s Making Tax Digital (MTD) system will be rolled out in 2020, and last year a limited pilot program was launched to test the new digital system that will require businesses to report taxes digitally. The pilot has now been extended to all self-employed taxpayers in the UK. This means if you’re a sole trader with income from one business and your current accounting period ends after 5 April 2018, you can volunteer to file your income tax updates to HMRC digitally via the compliant software providers supporting the pilot. The pilot is also said to open up next month to unincorporated landlords.
What software can self-employed UK taxpayers use for the pilot?
HMRC’s list of software providers at the time of writing only contains two entries – IRIS and Rhino, but further accounting software companies are expected to appear on the list as the pilot progresses. Compliant software allows digital record keeping of income and expenses, sending quarterly updates to HMRC and viewing tax estimates from HMRC regarding the tax you owe. This is based on the updates provided by the software.
If you are using different software for your accounting, it may still be possible to pull client information directly from that software into IRIS and RHINO, but you will need to check with your software provider whether they have a partnership in place.
Why join the pilot?
MTD is coming into force eventually, and by signing up now you can not only help the government test this new tax service, but it’s also a chance to get comfortable with the new system yourself.
If your only source of income is through your jobs as a self-employed individual, by signing up to the pilot, you will not need to worry about filing a Self Assessment tax return at the end of the year. Instead, you’ll see the taxes owed in real time as the year progresses.
You can sign up for the pilot using your Government Gateway user ID and password, which is the same one you use for the Self Assessment online service.
Sending MTD updates using your accountant
As accountants for small business owners, we’ve been providing MTD transition support to small businesses in London since the rollout of the pilot scheme last year, and are happy to extend our services to the self-employed. Integrating IT systems can be challenging and time-consuming and without IT support, you may struggle with HMRC’s accounting software. We understand this at Tax Agility and also know that dealing with new and unfamiliar software adds extra work to your day. We work with XERO, a cloud-based accounting software, to prepare our clients of all sizes for a smooth transition.
Give us a call on 020 8108 0090 today to hear more about how our small business accountants at Tax Agility can help you.
A personal tax return service for Putney residents
Situated conveniently on the river and with many transport links, Putney is great place for businesses. Part and parcel of having your own business is ensuring that you complete your taxes on time. Tax Agility are chartered accountants in London that are experts in dealing with your personal tax returns. We offer a tailored and comprehensive service that is perfect for Putney residents and is ideal for helping you to manage your finances.
Personal tax returns
There are a number of reasons why you may have to complete a personal tax return, including if you:
- Are self-employed
- Receive income from a contractor or partnership business
- Receive income from land or property
- Receive income from overseas
- Receive any other gross income
The 31st of December will soon be upon us, and with it comes the deadline for your online personal tax returns. As accountants, we understand that dealing with your taxes can be confusing and time consuming. This is why we offer a personal tax return service for Putney residents. This service aims to make your life easier so that you can focus on spending your December doing the things you love with the people you care about.
As a Putney resident, you have access to a local Tax Agility office. Here, you can meet with a personal tax professional who can work closely with you and who can answer any questions you may have about completing your tax returns.
Personal tax planning
As well as supporting you through completing and submitting your personal tax returns, we can also give you advice with our personal tax planning service. This service can help you to plan efficiently so that you are well prepared for any surprises the future may bring.
We can support you with a range of personal tax issues, including:
- Income tax
- Trusts and estates
- Inheritance tax
- Capital gains tax
Our aim is to work with you to create a sustainable plan that can help you to save, protect and invest your money for the future. Our advice is practical and tailored to your specific needs, so you can start implementing your plan straight away.
Tax Agility can support you!
If you need a helping hand to complete your personal tax returns and to make sure that they are submitted in time for the deadline on the 31st of December, contact Tax Agility today on 020 8108 0090.
Find out about our personal tax return service for residents in other locations:
- A personal tax return service for Wimbledon residents
- A personal tax return service for Richmond residents
A personal tax return service for Wimbledon residents
Wimbledon is an area famed for its yearly tennis competition with its quintessential strawberries and cream treat. But this district in southwest London is also home to multicultural residents and is a thriving industrial hub.
For Wimbledon residents who wish to develop their own business, or who already have an existing business, dealing with your finances and your tax situation can often be difficult and time consuming. To make your life easier, and to help you to focus your time on more important things, Tax Agility have a personal tax returns service that is specifically tailored for the residents of Wimbledon. Our local Wimbledon office is open for business, providing you with expert financial advice and services that you can use to ensure your success in business.
With the 31st of December and its deadline for your online tax returns looming, working with Tax Agility can help to ensure that you’re organised and properly prepared for this necessary tax requirement.
Personal tax returns
Completing and submitting a personal tax return, or SA100 self-assessment tax form, is a mandatory task that is required if you:
- Are self-employed
- Receive income from a contractor or partnership business
- Receive income from land or property
- Receive income from overseas
- Receive any other gross income
If you fall into any of these categories, Tax Agility can help you to prepare your tax returns, even submitting it to the HMRC on your behalf. By working with us, you can be sure to have more time for your business, as well as reducing the stress and confusion surrounding your personal tax obligations.
Personal tax planning
Planning for your future is an important step to ensuring that you are financially secure in the long term. We offer a range of services that include:
- Helping you to create strategic reviews to minimise your tax liabilities
- Disputing settlement negotiations and revenue investigations
- Advice regarding pensions and investments
- Advice on tax such as:
- Income Tax
- Trusts and Estates
- Inheritance Tax
- Capital Gains Tax
With help from Tax Agility, you can start investing and protecting your money in a way that is efficient and that gives you a head start on your future.
Contact Tax Agility today!
Tax Agility can offer you the tax planning advice you need to ensure a secure future. Don’t forget that the deadline for completing your online tax returns is the 31st of December, so get in touch with us before then for assistance and support with the process.
For more information on our personal tax return or tax planning service, call us today on 020 8108 0090. You can also visit us at our local Wimbledon office to speak to a tax advisor directly.
A personal tax return service for Richmond residents
Richmond residents, according to an Office of National Statistics survey, have the highest life expectancy in Britain, with the number of residents over 60 expected to increase by more than 18% by 2021. This rise in life expectancy has been anticipated to cause an increase in small businesses, with people deciding to make that leap in order to make a living after they have retired from their mainstream job. With this comes the need for tax planning and personal tax services.
Tax Agility are chartered accountants with experience in helping people with their personal taxes. We offer a comprehensive service that is designed to help you manage your finances. With the online deadline for your tax returns fast approaching (31st of December), contacting Tax Agility today can save you time and help reduce your worries.
Personal tax returns
Completing and submitting personal tax returns can often be confusing and time consuming. If you are self-employed, receive income from leasing land or property, or obtain an income from overseas, you will be required to complete tax return forms each tax year. Tax Agility believe that your time is better spent running your business and organising your finances. This is why we provide a service that incorporates our skills as accountants with our dedication to you as a client. We will analyse and assess your personal finances, which will allow us to correctly enter the necessary information on your self-assessment tax return.
Our local Richmond tax return service is designed with you in mind. We offer a range of specialised services that are intended to make your life easier. To top it all off, we also have a local Tax Agility office in Richmond where you can meet with our personal tax professionals for one-on-one assistance.
Personal tax planning
In addition to helping you prepare and submit your self-assessment tax return, we can also support you with our personal tax planning service. This service is useful because it will allow you to closely monitor your financial situation and help you plan for your future. With Richmond residents getting older and delving into other past times, including new business opportunities, now is the time to engage with some solid personal tax planning.
We can offer you advice on a range of personal tax planning options, including:
- Income tax
- Trusts and estates
- Inheritance tax
- Capital gains tax
By working with us, you will be able to create a strategic plan that can help you to save, protect and invest your money in a way that is efficient and long lasting. We are passionate about offering useful and tailored assistance that you can use practically.
Tax Agility can help!
Starting a business can be daunting and stressful, especially when dealing with your finances and planning for the future. Tax Agility can make the process a lot easier to manage.
Remember, the 31st of December deadline for completing your online tax returns is fast approaching, but it’s not too late to contact us for personal tax assistance.
To find out more about how Tax Agility can help you with your tax returns or tax planning, call us today on 020 8108 0090. Alternatively, pop in and visit us at our local Richmond office.
The personal tax accountants you need
London, the city of opportunity, has long been the place where businesses come to thrive. Starting your own business has its challenges and rewards. One of the biggest inconveniences, however, are personal tax returns and the confusion they bring. With the electronic tax return deadline looming (31st of December!), Tax Agility can be the London personal tax accountants you’re looking for. We can offer support and assistance to help you get a better handle on your finances.
London based personal tax accountants
Our London based offices allow us to keep our finger on the pulse of the city. We can offer you a personal tax service that is localised and tailored to your financial needs. We have a number of offices in London that are always open to you, with professional staff who are eager to give you the tax advice required. In particular, we cover three main areas of London: Putney, Wimbledon and Richmond.
There are many people who need to complete their personal tax returns. If you are an individual who has a complicated financial situation, because you are self-employed, receiving income from land or property that you own, or receiving an income from overseas for example, filing a personal tax return is a necessity. Tax Agility can be there for you and can help you to complete this important paperwork.
Our services
At Tax Agility, we understand that completing personal tax returns is often time consuming and stressful. Because of this, we aim to offer a service that can eliminate the stress and save you time. As a business owner, this time can be better spent on improving your company and communicating with your clients.
As well as helping you to complete and file your personal tax returns, we also provide a range of other services that are designed to assist you with managing your financial situation. We can:
- Prepare your tax return and send it to HMRC on your behalf
- Review your finances to minimise tax liabilities
- Help you with your inheritance tax planning
- Give you advice regarding pensions and investments
- Help you to dispute settlement negotiations and revenue investigations
Tax Agility can help you with your personal tax planning too. Our aim is to help you get a hold on your finances and to ultimately save you money. We can offer advice on the following:
- Income tax
- Trusts and estates
- Inheritance tax
- Capital gains tax
By working with us, you can learn how to make the most out of your income. We can assist you with creating a personal tax plan that allows you to protect and invest your money to ensure that you are better prepared for your future.
Remember: the deadline for your electronic tax returns is the 31st of December, so be sure to contact us before this date in order to get the most out of our personal tax service.
For more information on how Tax Agility can help you with your personal finances, including your tax returns, call us today on 020 8108 0090 to arrange a free consultation.
Get your specialist financial advice with Tax Agility
Whether you have your own business or you’re just a tax-paying individual, managing your finances, including your taxes, is often a time consuming and challenging chore. What you need is a chartered accountant who understands your finances and who can offer a specialist financial advice service that will help to make your life easier.
What can Tax Agility provide?
At Tax Agility, our main aim is to get to grips with your finances so that we can offer you the best possible advice going forward. By understanding your financial situation, we can then work with you to create a long-term financial plan that will allow you to save, protect and invest your money to help you reach those future goals.
We have excellent relationships with leading firms who can offer expert and honest advice on a range of financial areas including:
- Investments
- Personal financial advice
- Corporate financial advice
- Pension schemes
- Retirement planning
- Mortgages
- Life insurance
- Critical illness cover
- Financial planning
The advice that you take away from our specialists will allow you to make beneficial decisions for your future and for the future of your business.
The benefits of specialist financial advice
By working with us, you can ensure that you’ll receive professional, impartial financial advice that is good value for money.
Having your own business can be a challenge, especially when it comes to managing the financial aspects. As a business owner, then, you could greatly benefit from our specialist financial advice services. This could help to ensure that you’re financially prepared… just in case.
Tax Agility has worked with a large range of businesses, everything from hotels and restaurants to tech start-ups, PR agencies, landlords and doctors. This experience has allowed us to work closely with business owners and management teams to truly understand the issues business face on a daily basis. With this knowledge, we have been able to provide a service that puts your business needs first.
Contact Tax Agility today
Tax Agility is dedicated to providing financial advice that is tailored to what you need as an individual. We recognise that everyone is different and that financial situations vary greatly. With this in mind, we aim to offer a service that is specific to you and the assistance you require from us as chartered accountants.
For more information on how we can provide you with the specialist financial advice you need, call us today on 020 8108 0090.
A personal tax service just for you
Tax Agility’s personal tax service is just that, personal. We provide a comprehensive service that is tailored to each individual and their specific tax situation.
Completing tax returns can often be challenging, stressful and time-consuming. We aim to alleviate this burden by managing the entire process for you, from beginning to end.
Our personal tax service starts with us assessing your finances in order to complete the necessary computations and to help you limit your tax liabilities. We then fill out the tax return and submit it directly to HMRC on your behalf. All this saves you time and money, and keeps your life stress-free.
As well as offering our services to individuals throughout London, we also cover three main areas in particular: Richmond, Putney and Wimbledon. These three areas have the added benefit of a local Tax Agility office where you can meet with one of our personal tax professionals directly.
Do I need to fill out a personal tax return?
Individuals who have a complicated financial situation are required to file a full personal tax return. In addition to this, a personal tax return is mandatory
- If you are self-employed, a contractor, or in a partnership business
- If you are a director of a limited company
- If you receive income from any land or property that you own, for example in the form of rent
- If you receive an income from overseas
- If you receive any gross income (income that has not had tax deducted from it)
Do you see your current tax situation above? If so, then you should be aware that a personal tax return is required from you every tax year. However, hiring Tax Agility to help with these tax matters can really make a difference. We can take on the responsibility of ensuring that your personal tax returns are completed and submitted in time, leaving you with more time to concentrate on the other important things in your life.
What do Tax Agility’s personal tax return services include?
Our personal tax return service is tailored to your specific financial needs. We can work with you to establish what you require from this tax service, thereby allowing us to implement a service with you in mind.
Our personal tax return services include:
- Preparing your personal tax return and file it on your behalf
- Taking a closer look at your finances to find ways in which you can save money by limiting your tax liabilities
- Offering you advice on pension plans or potential investments
- Helping you with disputing settlement negotiations and revenue investigations
- A fast, friendly and functional service
Speak to tax Agility today
For more information on how Tax Agility can help you with your personal tax return, call us today on 020 8780 2349 and we can arrange a free consultation.
Alternatively, if you’re a resident of Richmond, Putney or Wimbledon, you can come to our Tax Agility office where our tax professionals will be happy to help you.
Do you qualify for marriage allowance?
According to HM Revenue and Customs, nearly half the couples that are eligible to claim marriage tax allowance are still failing to do so. The tax allowance, amounting to £230 a year, can be given to all married couples and civil partnerships provided that they also conform to basic income criteria.
Marriage tax allowance was introduced in 2015, and since then only 2.2 million couples have claimed it, from the 4.4 million couples that are eligible. In order to help and encourage couples to apply for the marriage allowance, the government has since simplified the application process. HMRC have also launched several advertising campaigns urging people to apply and highlighting the eligibility criteria.
How does marriage allowance work?
There are some basic criteria that partners must fulfil in order to qualify for the marriage tax allowance. This criteria includes:
- Partners must be married or in a civil partnership.
- One partner must be working and paying the basic tax rate of 20%. If they earn over £45,000 they will not be eligible.
- The other partner must be earning less than £11,500 in 2017-18 and be paying no taxes.
- If these conditions are met, the partner who is not paying tax can transfer 10% of their tax allowance to their partner, so saving £230 within the tax year.
- You can backdate your claim to include previous tax years since 2015.
How can you apply for marriage allowance?
Applying for marriage tax allowance is straightforward. You can complete the form online on the gov.uk website.
Before you complete the form, you should have a few things to hand:
- Your National Insurance Number
- Your partner’s National Insurance Number
- A way to prove your identity. Can be any of the following:
- the last four digits of the account that your child benefit, tax credits or pension is paid into
- the last four digits of an account that pays you interest
- details from your P60
- details from any of your 3 most recent payslips
- your passport number and expiry date
With this information you can easily apply for marriage tax allowance and receive £230 a year. Don’t forget to check whether you might be eligible for back pay from previous tax years since 2015.
How can Tax Agility help?
At Tax Agility, we are skilled chartered accountants who specialise in helping individuals with their tax needs. We can find out if you’re eligible for any tax breaks, such as the marriage tax allowance, and work with you to apply for these and subsequently benefit from them.
In addition, we can also help you to deal with your everyday finances. It’s important to us that you and your family are aware of the finances available to you so that you can properly plan for your future. By working with us, you will receive professional advice and assistance on how to make the most out of your income.
If you’d like any further information on how Tax Agility can help you with your finances and taxes, contact us today on 020 8780 2349 or use our enquiry form.
What is the future of UK taxes after Brexit?
With all the uncertainty surrounding Brexit and the confusion about what this will mean for the UK once it has left the EU, Tax Agility can understand that this may be worrying for you. As chartered accountants, we aim to help our clients with any accountancy and/or tax issues they may have. With real issues surrounding tax and its potential changes hitting the headlines, we want to reassure our clients that even though things may be different, they don’t have to be scary.
What’s the issue?
Deciding to leave the EU has put the UK in a bit of a precarious situation, especially with respects to the future of UK taxing. Traditionally, the EU has supplied all of its member countries with massive monetary contributions, which have manifested in the form of grants, subsidies, and bursaries that have all assisted the UK economy in some way.
Without money from the EU, the UK will need to source money from its own economy in the form of taxes, and this is what is making a lot of people nervous. In order to ensure that the UK’s overall economy will not suffer too much after Brexit, a broad and stable tax base is needed. Such a tax base should be fair for all UK citizens, which means that the chancellor of the Exchequer has a lot to think about as the Brexit negotiations continue.
How can Tax Agility help?
As chartered accountants, we are very well versed in the ins and outs of UK taxes. We make it our business to ensure that we are up to date with all changes to the taxation system, should they occur. Whether you are a business owner or just a tax paying citizen, understanding that things may change after Brexit is important and you should be prepared for your future.
Our experienced advisors can aid you with developing a clear and easy to follow tax plan that can support you with optimising your tax position. We will provide you with expert advice that will allow you to get to grips with your finances and ensure that you are well equipped for living in the UK after Brexit.
Contact us today
If you’re unsure about how Brexit has the potential to change your tax paying habits, call us today on 020 8780 2349. Even though nothing is set in stone just yet, we can help you to prepare for your future.