Yearly Archives: 2024

Chancellor Rachel Reeves’ recent Budget announcement has raised concerns about the potential impact on pensions. Starting in April 2027, defined contribution pension pots will be included in estate inheritance tax liabilities. The nil-rate band freeze has also been extended until April 2030. If you’re a retiree, these changes may affect you. Our seasoned tax advisors in London can work with you to ensure everything is in order.

What does the Chancellor’s Budget mean?

The Chancellor’s Budget introduces changes that could result in double taxation on pensions for individuals who pass away at or after age 75. Tax rates could reach as high as 90% in some cases.

The Office of Budget Responsibility estimates that this change will affect an additional 1.5% of total UK deaths — that’s approximately 10,500 of the 213,000 estates with inheritable pension wealth between 2017 and 2028. Furthermore, due to the inclusion of pension assets in the estate’s value, some 38,500 estates may face an average additional inheritance tax liability of £34,000.

What happens if you’re double-taxed?

Your beneficiaries could face “double taxation” on your pension, which occurs when they withdraw funds and are subject to income tax at their marginal rate, especially if the pension was already taxed as part of your estate.

As a retiree, it’s essential to protect your beneficiaries from double taxation on your pension. If your pension savings exceed the total value of your estate (£2 million), the residence nil-rate band will be nullified, leading to significantly higher inheritance tax bills. Start planning now with the help of our tax advisors in London to mitigate this risk.

Plan your estate and avoid hefty taxes with Allenby Accountants.

Let our tax advisors in London help with retirement and estate planning to reduce inheritance tax. Contact us today by calling 0208 914 8887 to arrange a free, no-obligation consultation.

As the tax return deadline approaches, the pressure to file quickly can increase stress levels. But don’t make the mistake of rushing through the process. This may lead to errors and potentially result in higher tax bills. In severe cases, the HMRC might even investigate your finances, issue additional tax charges, and impose penalties, especially if they suspect fraudulent activity or undisclosed income. This is why it’s best to work with a self-assessment accountant to prevent errors.

Here at Allenby Accountants, we specialise in tax returns. With our assistance, you can confidently submit your self-assessment to the HMRC online by the January 31st deadline and accurately determine your capital gains tax and income tax liabilities.

But while we’re here to help, it’s also essential to take proactive steps to prevent errors in your self-assessment tax returns each year. Read on for valuable tips to ensure accurate and error-free submissions.

Don’t forget to declare the interest you have on your bank accounts.

You must declare the interest earned on all bank accounts for the tax year, except for tax-free accounts like ISAs. This includes:

• Interest from business bank accounts
• Interest from personal and building society accounts
• Your share of interest from joint accounts

When working with our self-assessment accountant, it’s crucial to report all income, including:

• Salaries, wages, tips, bonuses, and benefits
• Savings interest
• Income from rental properties or holiday lets
• Overseas earnings and pensions
• Investment Income
• State benefits like maternity or paternity pay

Note your NI or UTR number.

Your 10-digit Unique Taxpayer Reference (UTR) is crucial for identifying you to the HMRC. Ensure accuracy when entering this number on your self-assessment tax return.

Additionally, you’ll need to provide your National Insurance (NI) number, which can be found on your P60, payslip, or through your tax account. If you’re unable to locate this information, contact the HMRC for assistance.

Need more self-assessment tips?

Don’t hesitate to connect with a self-assessment accountant here at Allenby Accountants for more tips and tailored advice to complete your tax return correctly and promptly. Call 0208 914 8887 or request a call-back here.

Don’t miss this opportunity to prepare for the upcoming Stamp Duty changes in April 2025. These changes could significantly affect your property investments or home purchases. The good news is that you don’t need to navigate Stamp Duty changes on your own. Our experienced property accountants will walk you through the updates and how they might impact your finances.

Understanding Stamp Duty

When you buy new land or property in England, the HMRC charges you Stamp Duty Land Tax or simply Stamp Duty. This tax also applies to land or property purchases in North Ireland. The amount you pay depends on various factors and your unique circumstances, such as whether you’re a UK resident, buying property as a company or an individual, or a first-time buyer. Likewise, the HMRC considers whether you’re buying additional property or replacing your main residence.

What are the current and upcoming rates?

The Government announced the short-term Stamp Duty increase in September 2022, but it will end on March 31, 2025. If you buy a property and complete the sale after that date, it will be subject to the new rates.

Here’s a breakdown of the current and upcoming Stamp Duty rates for UK residents replacing their main residential freehold property:

Current Stamp Duty rates (until March 31, 2025):

• 0% on the first £250,000 of the property’s value
• 5% on the portion between £250,000 and £925,000
• 10% on the portion between £925,000 and £1.5 million
• 12% on the portion above £1.5 million

New Stamp Duty Rates (effective from March 31, 2025):

• 0% on the first £125,000 of the property’s value
• 2% on the portion between £125,000 and £250,000
• 5% on the portion between £250,000 and £925,000
• 10% on the portion between £925,000 and £1.5 million
• 12% one on the portion above £1.5 million

What does it mean for property buyers?

The new Stamp Duty rates will likely make buying a property more expensive because you’ll have to pay a higher percentage of the property’s value in taxes. Carefully assess your current and future financial situation to determine if you can afford the higher costs. Consider whether it’s more beneficial to buy a property now, before the new rates take effect, or wait until after March 31, 2025.

Allenby Accountants can help you navigate the changes with confidence.

It’s important to understand these changes and their impact on your plans to buy a new property — and your finances in general, especially if you are self-employed. No matter your circumstances, our property accountants will offer tailored advice to help you navigate the tax and financial implications of Stamp Duty changes in 2025.

Get in touch with us today at 0208 914 8887. You may request our property accountants to call you back.

Juggling multiple properties (especially while running another business) can make property accounting much more complex. Whether you’re a seasoned landlord or just starting, accountants in Uxbridge can provide you with the expert guidance and support you need to streamline your property finances.

Our team at Allenby Accountants have the expertise and technologies to keep track of your accounts and ensure their precision. Plus, they leverage their industry knowledge to offer tailored advice and create strategic business plans to improve monetary value. Our goal is to simplify property finances from rental income and save you from tax filing woes with the HMRC.

How we help landlords in Uxbridge

As specialised accountants for landlords, we are proud of our expertise in all matters of rental income and property finances. No matter your property’s size or the number of properties you own, we apply an ethical and tailored approach to help manage your finances while ensuring better ROI.

Reduce taxation

Our accountants in Uxbridge will prepare accurate records for tax filing and rental accounts. We will accomplish everything as soon as possible while complying with relevant laws and regulations. With our help, you can organise your affairs as a property owner while reducing your tax burden.

In addition, our team can help you navigate tax laws and ensure correct tax filing while cutting your costs. Our property accountants can allocate rental income expenses elsewhere. If you have many residential lettings in the UK, we can poll the expenses and income together.

For a smoother and more rewarding landlord experience

Allenby Accountants will take the guesswork out of record-keeping and HMRC-related concerns. We can help you save on paying rental income taxes and identify opportunities to earn more, such as by filing a claim for LESA (Landlord’s Energy Saving Allowance). As your accountant, we’ll let you focus on your properties and business while you leave the books, accounting, and taxes to us.

Meet our property accountants.

Call us at 0208 914 8887 to arrange your free initial consultation with our property accountants in Uxbridge. We can also provide prompt advice for your business plans and other financial concerns.

Making Tax Digital (MTD) is set to expand to cover income tax starting from April 6, 2026. If you’re self-employed with annual earnings exceeding £50,000, you must be prepared for this transition. For some already registered for VAT, the MTD rules for VAT might be familiar territory. Still, it’s prudent to consult a self-assessment accountant to stay comply with the new requirements for MTD for ITSA.

How does MTD affect the self-employed?

Instead of submitting returns via HMRC’s website, you will need to keep digital records and use compatible software that connects to HMRC to submit information. Starting on April 6, 2026, you’ll also need to send quarterly updates to HMRC and submit a Final Declaration for all your taxable income by January 31 each year.

The VAT registration threshold was raised to £90,000 from April of 2024. If your earnings meet or exceed this threshold, you’ll have to register for VAT. Once registered, HMRC will automatically enrol you in the MTD system, ensuring you’re aligned with digital tax reporting standards.

Benefits of MTD for the self-employed

• Automating data entry means bookkeeping records automatically fill your quarterly updates, reducing the risk of human error.
• Submitting quarterly updates gives you a clearer picture of your total tax liability, aiding in tax planning.
• The updates submitted to HMRC are more frequent but contain less information. This allows you to break down bookkeeping into manageable monthly or quarterly tasks. 

Do you have to go digital?

If you are eligible, transitioning to digital processes is mandatory. Some exceptions include foster carers and individuals unable to acquire a National Insurance number.

Have a self-assessment accountant assess your eligibility. Our self-assessment accountants at Allenby Accountants are well-versed in MTD legislation and will help you determine whether or not it applies to your business.

Call us at 0208 914 8887 today.

The Oct 30 Budget highlighted a commitment to boosting public service spending and investment, with an anticipated rise of approximately £70 billion annually, equaling 2% of GDP. The tax changes unveiled by the Chancellor are projected to cover more than half of this surge in public expenses, with the remainder being addressed through government borrowing.
It’s a good idea to consult tax advisors in London to understand how these updates may affect you and your business:

• The rates and thresholds for employer’s National Insurance contributions are being adjusted. This change alone is anticipated to generate £25 billion more in taxes each year.
• The rates of capital gains taxes are going up and these changes are effective immediately.
• From 6 April 2025, adjustments to the rates for Business Asset Disposal Relief will come into play.
• Inheritance tax relief updates have been targeted, affecting businesses, unquoted shares, agricultural property, unused pension funds, and death benefits, while the current thresholds for inheritance tax will stay the same until April 2028.

The Chancellor confirmed that VAT rates, income tax rates, and employee National Insurance contributions will stay the same.

However, the government will implement several measures previously suggested by Labour before the election. These include eliminating the remittance basis of taxation for individuals not domiciled in the UK, revising how carried interest is taxed, imposing VAT on private school fees, and raising the Energy Profits Levy.

For a more comprehensive understanding of the budget changes, consult with our reliable tax advisors in London at Allenby Accountants. We can assist you in navigating the complexities of taxation and help you minimize your tax liabilities while staying compliant with the latest regulations.

Email our tax advisors in London at info@allenbyaccountants.co.uk to schedule a consultation.

Following Trump’s victory in the US presidential election, there is a lot of curiosity about its implications for the worldwide economy. According to a real estate expert, the fear that capital gains tax might rise in the United States under Kamala Harris has been alleviated with Trump’s win.

UK investors have long favoured the US as a destination for seeking advantageous tax conditions, and there’s been a notable surge in interest among UK residents in purchasing holiday homes there — a trend that’s increasingly viewed as a strategy to safeguard retirement savings.

This trend may very well continue following President Trump’s election. His incoming administration promises to focus on lowering taxes and reducing regulatory burdens aims to create a more stable investment environment and make the US even more appealing to foreign investors. According to UK real estate analysts, these policies should also prompt the UK government to reconsider any further tax increases.

Chancellor Rachel Reeves introduced a 5% increase in Stamp Duty for second home purchases in a recent budget announcement. Capital gains tax rates have also been revised upwards, with the lower rate now ranging from 10-18% and the higher rate from 20-24%. These fiscal adjustments, according to UK property analysts, may lead investors to reassess the attractiveness of UK properties and consider alternatives abroad, particularly the US.

If you are among the investors thinking about investing in US properties, consult with competent property accountants first to fully grasp the implications of your purchase on your tax liabilities as a UK taxpayer. It’s also crucial to understand how American property taxes, zoning laws, and exchange rate fluctuations can significantly affect the final cost of property deals. It’s also important to stay vigilant about changes in US immigration and tax regulations given the potential shifts under President Trump’s administration.

Schedule a consultation with our property accountants at Allenby Accountants today. We can help you start your journey towards successful US property investments.

If you’re a landlord, you might have heard of HMRC’s recent announcement about the Let Property Campaign. This initiative encourages landlords to come forward and address any unpaid taxes on rental income, regardless of whether they own a single property, multiple properties, a vacation home, or rent out a room above the Rent-a-Room Scheme threshold.

HMRC has made it clear that landlords who haven’t disclosed their rental income need to take action immediately. After disclosing, they have a 90-day window to figure out and pay any tax that’s due. Not doing so could result in hefty fines or even legal proceedings if HMRC discovers the unpaid taxes at a later stage.

Landlords will owe tax on their rental income, minus any allowable expenses and deductions. The amount of tax owed depends on their individual tax bracket (basic or higher rate). It’s best to seek the help of accountants for landlords if you need assistance.

Several common pitfalls can lead to tax troubles for landlords. These include renting out a property after moving in with a partner and failing to report the income, continuing to rent out a marital home post-divorce without disclosure, and overlooking the requirement to declare rental income from inherited properties.

Other scenarios that might initially seem innocuous, like leasing a property to help cover care home expenses or renting out a flat to college students, can also lead to errors in reporting rental income.

Note that claiming ignorance about the taxability of rental income in these situations will not absolve you of responsibility, so consult with your accountant to make sure that you’re staying compliant.

How our accountants for landlords can help

At Allenby Accountants, we have a team of experienced accountants who specialise in landlord taxes and can guide you through the process of disclosing and paying rental income taxes. Our expert knowledge of the tax system ensures that all your rental income is declared correctly, minimising the risk of penalties or legal action from HMRC.

Call us today at 0208 914 8887 to schedule a consultation.

Healthcare expenses in the UK reached £292 billion last year. It’s hardly shocking especially if you think about how crucial medical care is to all of us. While doctors and nurses are busy providing top-notch care to their patients, there’s an equally important job happening behind the curtain: keeping track of the finances of clinics and hospitals to make sure that they stay viable.

What do accountants for doctors do exactly?

Accountants for doctors essentially help healthcare professionals manage their financial matters and ensure they stay compliant with tax laws. These specialised accountants understand the pressure doctors face with their demanding schedules and aim to relieve them of the stress related to accounting.

Taking care of tax submissions

Handling financial tasks is the last thing medical professionals should be worrying about. But despite the time constraints, it’s very important for doctors to ensure their tax returns are submitted accurately and on time. If left to the last minute, there’s a risk of errors leading to underpayment of taxes, which could result in penalties from HMRC.

Accountants for doctors make sure that tax returns are accurate and submitted on time, so doctors don’t have to worry about penalties from HMRC. This also gives them assurance that all possible tax reliefs and deductions applicable to them were taken into account.

Keeping track of financial records

As medical practices grow, so does the need for proper financial record-keeping. Accountants for doctors play a crucial role in maintaining accurate and up-to-date financial records. They ensure that all expenses and income are recorded correctly and that there is full transparency in the practice’s finances. This way, doctors can see exactly where their practice stands financially and make smart choices about what to do next.

At Allenby, we specialise in helping businesses of all kinds succeed. For doctors and medical professionals, we handle everything from accounting and bookkeeping to addressing business challenges like getting financing, boosting profits, and managing year-end accounts. Our aim is to take the stress out of managing finances so you can focus entirely on your core practice. Reach out to us today and discover how we can support your medical practice’s growth and success.