Please forgive any awkwardness you feel when reading this letter. At heart, I am a very private person…
Making Tax Digital
There is a lot of information being thrown around when is comes to the financial support you can get from the goverment to assist yourself or your business through Covid-19. Although many new legislations have come through, the process of implementing them are not as...
The ‘Educate The Executor™ Forum’ has been set up to educate, support and inform existing or potential executors and administrators. It is also to support the bereaved and anyone that has suffered a loss.
On 26 March 2020, Chancellor Rishi Sunak announced assistance for the self-employed, intended to be comparable to the help already in progress for furloughed employees. At the time of writing the fine detail is still emerging, but the basics are in this article.
View all the financial support you can get from the UK Government here with the, JT AccountS® Covid-19 Financial Support Guide.
The current inheritance tax (IHT) allowance whereby no inheritance tax is charged is on the first £325,000 (per person) of someone’s estate – which is the value of the total assets they leave behind when they die (or 36% if leaving at least 10% to a charity). Couples can leave a home worth £650,000 without it attracting inheritance tax (singles £325,000). Above the threshold, the charge is 40%. This remains unchanged.
A Self-Assessment tax return declares all your income for the tax year, including income that has already been taxed at source. If you have paid too much tax during the year you’re likely to receive a rebate. The tax year for every individual in the UK runs from 6th April to the 5th April of the following year. Please note that a Self-Assessment tax return is completely separate to a company tax return.
Corporation Tax is a bit like Income Tax for companies, but the difference is that companies don’t have a personal allowance. This means that as soon as your business starts making a profit, it needs to start paying Corporation Tax at the Corporation Tax rate (unless it’s previously made losses).
Whether an accountant already has a strong knowledge of the deceased’s financial affairs or if you have not worked with that accountant before, the combination of accounting, tax, law and administration skills required means they are often well placed to carry out this kind of work.
Picture this, December is almost over and January is fast galloping into sight bringing with it HMRC’s 31st January self-assessment deadline!