Budget 11 March 2020

The chancellor is due to deliver the Budget on Wednesday 11 March. After one of the biggest gaps between Budget’s in history and with the detail of ‘Brexit’ still being worked out, it could be a busy speech. It is also very close to the beginning of the new tax year with many details still not confirmed which will apply from 6 April 2020.

We will be monitoring this closely and will be reporting to our clients on all the key topics. If you would like to find out how we could help you, please contact us for a free, no obligation initial meeting.

Tax free electric cars

As a result of recent taxation changes, now may be the perfect time to consider an electric car if you run your own business or are provided a company car by your employer.

For 2020/2021, there will be no benefit in kind (and therefore no income tax or class 1a National Insurance) on providing a pure electric company car. In addition to this a business can claim 100% of rental lease payments or purchase price (via capital allowances) and running costs against corporation tax. 1% and 2% rates have been confirmed for the following two years, so the car should remain tax effective for a number of years.

If you would like to know more about this please contact us.

Capital Gains Tax (CGT) changes

From 6 April 2020, where residential property that is not your principal private residence is disposed of and all or part of the disposal is subject to Capital Gains Tax (CGT), a return and the tax due must be submitted to HM Revenue and Customs within 30 days of the disposal. This is much sooner than simply reporting it via the self-assessment return after the end of the tax year. The disposal and any tax paid will then be included on the self-assessment return and any balance owed/owing will be calculated.

Any clients who are disposing of property of this nature should speak to us before the sale has taken place. You may not be able to rely on your conveyancer to carry out this process for you. We are happy to calculate the position for both new and existing clients.

Self-assessment filing and avoiding penalties

Following the tax return filing deadline, HMRC believe that almost 1 million people missed the filing deadline. Other than in some special circumstances, this will leave them facing a £100 late filing penalty. If still unfiled after three months (30 April 2020) then daily penalties of £10 per day up to a maximum of £900 will also apply. If still unfiled after 6 months, an additional penalty of 5% of tax due or £300 if greater will be due . A final 5% penalty can apply after 12 months.

If you are late, don’t panic! You should aim to complete your tax return as soon as possible to limit penalties. Also consider making an estimated tax payment to limit interest and penalties in respect of late payment (which are in addition to the late filing penalties).

We are happy to assist anyone with filing a late tax return, so please get in touch if you need any help.

Budget Report 2018

Please click the link below to view our 2018 Budget Report:

Leslie Ward and Drew Budget 18

The report covers personal, business, employment and capital  tax matters, as well as an overview of any other matters and a summary of the current and next tax year’s rates and allowances.

If you have any queries or would like to discuss the content of the report further, please get in touch with us here:

Contact Us or meet our people.

Christmas and New Year

Please note that the office will be closed for the Christmas and New Year period from 12 noon on Friday 22rd December until we reopen at 9am on Tuesday 2nd January 2018.

We would like to take this opportunity to wish all our clients and their families a happy Christmas and New year and we look forward to continuing to assist them in 2018.

Scam HMRC Calls

Fraudsters are now making calls. Put the phone down on them and as a client of Leslie, Ward & Drew call us for reassurance of your tax position. If you would like to become our client for reassurance of your tax position please contact us.