Monthly Archives: December 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.