Pension and dividend tax changes dropped as election looms

Confusion reigned this week as the Chancellor, Philip Hammond, revealed that two measures previously announced in his Budget will not go ahead. For now, anyway. Mr Hammond’s Budget, delivered in early March, will be remembered for the proposed National Insurance rise for self-employed workers. A few days later, following protests and a media backlash, he changed his mind. It now seems that two other measures, which would have affected pensioners and shareholders, will now not go ahead. Contribution cut Prior to the Budget, the Money Purchase Annual Allowance (MPAA), the maximum people who have withdrawn money ...

Digital tax overhaul will require five returns per year

The upcoming digitisation of the tax reporting system could mean that millions have to file five tax returns a year. The overhaul, called ‘Making Tax Digital’ starts its pilot trial in the 2017/18 tax year, with people being gradually drawn into the system over the following two years. Why is tax going digital? In the ‘Making Tax Digital’ Policy Paper, H M Revenue & Customs (HMRC) states that the new system will save businesses and the self-employed time and money by keeping track of information and fixing any errors in real-time. This ...

Why Buy to Let landlords will be hit hard by the Budget

Why Buy to Let landlords will be hit hard by the BudgetGeorge Osborne’s first Budget speech contained a nasty, and unexpected, surprise for many Buy to Let landlords. The change will push up the tax paid by thousands of property investors. So what is changing and how much will it cost you? Read on to find out. Many landlords borrow money to finance the purchase of their investment properties. Apart from the fact interest rates are currently extremely low; investors have been able to offset the interest they pay on Buy to ...

Pension Freedom leads to Government windfall

Pension Freedom leads to Government windfallWhen Pension Freedom was first announced by George Osborne, in the spring of 2014, many commentators remarked that giving people greater access to their pensions, whilst raising additional revenue for the Treasury, was a clever move. New figures have now revealed the likely extent of the windfall to the Treasury and it’s far greater than had previously been predicted. George Osborne had indicated that in the first year Pension Freedom would raise £415 million. However, new figures from Hymans Robertson, a pension consultancy, estimate that a total ...