Other Tax News

For some tax reliefs you can go back six tax years.

Income Tax Refund - Gift Aid
From this years tax return onwards you can nominate to refund all or part of any tax refund directly to a nominated charity. Gift Aid will be paid on top of your refund too. The relevant form is on the Inland Revenue website.

Child Tax Credits
Coming in the budget this year was a new payment to the main carer of children up to 16, or 18 in full-time education, replacing the Children's Tax Credit seen in the previous 2 tax years. The maximum CTC is paid to the main carer if the family income is less than £50,000; up to £58,000 the allowance is scaled back and above £58,000 - nothing.

Please note that you will need to contact the Revenue directly in order to obtain a form and initiate a claim.

Pension Contributions
If you make personal pension contributions and you are a higher rate tax payer, you may be entitled to tax relief.

Subscriptions to Professional Bodies
If you are employed and pay subscriptions to professional bodies which are related to your employment, you may be entitled to tax relief.

Capital Gains Tax
Do you have more than one property? If so, you will need to elect for main residence which will enable you to vary that election at any time in the future. This has many advantages.

Husband and wife businesses
The tax press has advised the Revenue are looking at husband and wife businesses where one spouse may not work in the business but draws a disproportionate benefit - either payroll, benefits or dividends. This is being undertaken under S660 tax legislation. We have yet to see any actions taken against our clients but it is something to bear in mind especially if your total income is within the 22% tax band.