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Landlords - deductible expenses you should know

Jane Wu LLB ACA

2 min

Landlords - deductible expenses you should know

As a landlord, the lower the taxable profit from your property rental business, the less tax you will pay. As allowable expenses are deducted from rental income to arrive at the profit figure, it is important that not to overlook any expenses which you have incurred and which can be deducted when working out your taxable profits. What is deductible? The general rule is expenses can be deducted in calculating the profits of your property rental business if they are incurred wh

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National Insurance: rates and thresholds for 21/22

Jane Wu LLB ACA

3 min

National Insurance: rates and thresholds for 21/22

2021/22 National Insurance Contributions - what you need to know. The 2020/21 tax year starts on 6 April 2021. From that date, new thresholds apply for National Insurance purposes. Self-employed The self-employed pay two classes of contributions – Class 2 and Class 4 – if their profits exceed the relevant thresholds. Class 2 contributions are payable at £3.05 per week for 2021/22 (unchanged from 2020/21) on earnings in excess of the small profits threshold, set at £6,515 for

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Gift Aid

Jane Wu LLB ACA

2 min

Gift Aid

Beware if your income falls - HMRC could seek to recover the tax from you Where a Gift Aid declaration is made, the recipient charity can claim back basic rate tax on the donation. The donation is treated as made net of basic rate tax, meaning that for every £1 donated, the charity can claim back 25p, or to put it another way, a donation of £80 is worth £100 to the charity. There is good news for higher and additional rate taxpayers too – they can claim the difference between

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Claim your working from home costs

Jane Wu LLB ACA

2 min

Claim your working from home costs

Many employees will have spent much if not all of the last year working from home. While the tax system enables employers to pay employees a tax-free allowance of £6 per week (£26 per month) to cover the additional household costs of working from home, employees with less generous employers can also benefit to a degree by claiming tax relief for the extra household costs that they incur as a result of working from home. How much? Employees can make a claim for £6 per week (£2

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IR35 and off-payroll working – What to do from 6 April 2021

Jane Wu LLB ACA

3 min

IR35 and off-payroll working – What to do from 6 April 2021

If you provide services through an intermediary (company or partnership) here's what you need to know. Prior to 6 April 2021, workers who provide their services to a private sector organisation through an intermediary, such as a personal service company, need to consider whether the IR35 rules apply to them. This will be the case if the nature of the engagement is such that if they provided their services directly to the client rather than through their personal service compa

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Can I claim for food and drink while travelling?

Calculating home expenses for company directors (from FreeAgent)

Selling a second home or investment property?

Jane Wu LLB ACA

2 min

Selling a second home or investment property?

You only have 30 days to report and pay any tax Thinking of selling a second home or investment property? You have to move fast to report the gain and pay the tax Unlike a gain on the sale of a main residence, which qualifies for private residence relief (as long as the associated conditions are met), any gain that arises on the sale of a second home or an investment property (such as a buy-to-let property) will be liable to capital gains tax. Since 6 April 2020, different ru

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