Nicola our Practice Manager talks about Gift Aid…

Did you know that you can help future Team GB Olympic champions by making donations through the Gift Aid scheme?

Not many people realise, that like donations to registered charities, Gift Aid now also applies to donations to Community Amateur Sports Clubs that have registered their status with HMRC.

For all donations to clubs and charities, they can claim 20% tax relief from donors who declare they are taxpayers and want to donate under the Gift Aid scheme. So for every £80, they will receive £100 under the scheme.

Please bear in mind though that non taxpayers should not use Gift Aid when making donations.

Changes to the tax system from 06.04.16 have meant an increase in individuals who are no longer paying income tax.

From 06.04.16 there was:

• an increased personal allowance of £11,000
• a new personal savings allowance meaning every basic rate taxpayer can earn up to £1,000 on interest without paying tax
• a £5,000 dividend allowance to every taxpayer to replace dividend tax credits

In light of the above, individuals, in particular pensioners who are receiving just state pension and dividend income and claiming Gift Aid, may now be left with a tax bill.

Care should be taken as it is the donors responsibility to pay back any shortfall in tax paid against gift aid claimed, to HMRC.

The Gift Aid scheme remains a great scheme for taxpayers to support local charities and sports clubs. 

If you need any help with the above in relation to your personal tax position then please let us know and we will be happy to help.

Nicola Hardy, our practice manager, asks if you are due a tax refund?

Are you due a tax refund?

 

As you will know we entered into a new tax year in April and so at Rotherham Taylor we are now starting to file tax returns for last year – 2015/2016.

We do like it when we can get a client a tax refund, however that does mean that you have overpaid tax in the first place!

Here are some of the scenarios that could generate a refund:

•  Are you a subcontractor in the construction industry and already had tax deducted on all of your earnings?
• Have you had emergency tax deducted from your pay or could you have been on the wrong tax code?
• Did you stop working during the tax year or move overseas and had previously been employed and paying PAYE?
• Can you claim deductions against your earnings such as business mileage or employment related subscriptions?

Or, are you self employed and made payments on account for 2015/2016, but your profits have since decreased, you ceased trading, or you made a substantial capital investment that could also have decreased your profits?

Any of the above situations could result in overpaid tax. If you would like advice on the above and would like to get your tax affairs up to date asap then please get in touch.

If you aren’t lucky enough to get a refund then at least we can give you plenty of notice of your tax liability!

Nicola Hardy, our practice manager, gives some top tips for individuals…

Tips for Individuals

As we are now gearing up for the new tax year in April, we have put together some tips for individuals to consider.

 

Dividend Taxation

From April 2016 the way dividends are taxed are changing, instead of the tax credit system there will be a £5,000 dividend allowance. If you are manager owned business, are a basic rate tax payer and if company profits allow it would be advisable to take dividends up to the basic rate band before the rules change in April 2016. If you require tax planning on this please do not hesitate to get in touch.

 

Use up your Partners Tax Free Allowance

The marriage allowance allows you to transfer part of your personal allowance to your husband, wife, or civil partner. To benefit as a couple, you can transfer up to £1,000 in 2016/2017, to your spouse or civil partner provided that the recipient is not liable to income tax above the basic rate. Taxpayers have 4 years to make this election.

 

Pay into a Pension Scheme

Contributions to your employer’s pension scheme can be made from your gross pay before any deductions are made for tax. All employers will soon have to offer pension schemes to their employees. A percentage of your pay will automatically be put into the scheme, to which in most cases, your employer will add money and to which you will receive tax relief on the contributions.

 

Check your Tax Code

Is your tax code correct? Having the wrong tax code could mean you are paying too little or even too much tax! The standard tax code for 2016/2017 will be 1100L, meaning you can earn up to £11,000 before paying tax at 20%. Even though this is the standard code, reductions can be made by HMRC in respect of benefits in kind, unpaid tax, and other taxable income. Likewise, the code can be increased in respect of allowable expenditure for example subscriptions. If you believe that your tax code is wrong you can contact us for advice or HMRC to review the code.

 

Help to Buy ISA

Designed for first time buyers, the government has created the Help to Buy Scheme, to help you take the first steps towards buying your own home. The Help to Buy ISA is available to each individual buyer as opposed to each household, and pays a government bonus of 25%.  So for every £200 a month saved, you receive an extra £50 bonus up to a maximum of £3,000, boosting your savings of £12,000 to £15,000. The minimum saving is £1,600 to claim a £400 bonus and you can kick start your account by depositing a lump sum of up to £1,200. On purchasing your first home your solicitor will apply for the government bonus to add to your savings.

 

If you have any questions about the above then please give us a call and we would be happy to discuss with you.

Nicola Hardy, our practice manager, says…

So here is our final blog of 2015!

 

It’s been a really busy year here at RT, which has seen Rebecca getting married, Nick becoming a Director and our new trainee Jack joining us!

 

We would like to take this opportunity to wish all our friends, colleagues and clients a very Merry Christmas and a Happy New Year and will see you all in 2016 for another busy year and Tax Return season.

If you haven’t managed to get your Tax Returns in to us then please can you get back to us asap in the New Year.

We will be closing at lunch time on Wednesday 23^rd December and re-opening at 9am on Monday 4^th January 2016.

 

FROM ALL AT RT