Real Time Information

Real Time Information (RTI) is a priority Government programme aimed at improving the operation of Pay As You Earn (PAYE). It will operate online. At present, employers and pension providers send information about tax and national insurance contributions (NICs) to HM Revenue & Customs (HMRC) after the end of each tax year. This means that […]

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Capping tax reliefs

A major feature of the budget announced earlier this year was the Government’s announcement of a proposed cap on unlimited tax reliefs with effect from 6 April 2013. HM Revenue & Customs and HM Treasury have now prepared a technical note on the measure which confirms that the cap will only apply to currently unlimited […]

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Tax simplification

The Government has announced its intention to adopt a number of proposals made by the Office of Tax Simplification (OTS) aimed at small business. The Government has indicated that the proposals should apply to unincorporated businesses with a turnover up to the VAT threshold of £77,000 and that they should continue to apply to businesses […]

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Year End planning: Income Tax

There are numerous matters for taxpayers to consider when reviewing their income tax position, several of which are set out below. Age related allowances The higher personal allowances for 65 and 75-year-olds are subject to an income limit of £24,000 for 2011-12. It may be possible to replace taxable income with tax-exempt income through, for […]

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Year End planning : Inheritance Tax

There are a number of inheritance tax exemptions and reliefs available to taxpayers, of which the main ones are set out below: The annual exemption This amounts to £3,000 per year and can cover substantial transfers made over a number of years. The exemption can only be carried forward for one tax year and so […]

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