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Archives for October 2018

Student loans repayment threshold increase

The government has increased the loan repayment thresholds for student loans by 2.9%

The increase in Student Loan Plan 1 and Plan 2 thresholds will take effect from 6 April 2019.

The thresholds of Plan 1 and Plan 2 Student Loans are increasing from April 2019 in line with inflation at 2.9%.

The Department for Education (DfE) has confirmed that from 6 April 2019 the thresholds will increase for tax year 2019/20 to:
• Plan 1 – £18,935, up from £18,300 for tax year 2018/19; and
• Plan 2 – £25,725, up from £25,000.

Student loan deductions will remain the same at 9% for Plan 1 and Plan 2 loans.

Celebrities and tax

We were interested to read this article from accountingweb which shows that even celebrities are subject to tax reviews.

The article referenced an interview that ITV host Eamonn Holmes gave with the Mail on Sunday, where he revealed that HMRC has launched a “test case” against him, claiming unpaid taxes from the past seven years.

Whilst no verdict has yet been announced from the case, it’s an interesting discussion over freelance versus employment and how that can impact on tax bills.

In essence, HMRC is challenging the pay that Eamonn Holmes received through his limited company and if found to bein breach of IR35 rules, it is believed his company’s tax bill could be as much as £2m.

If you have any questions about IR35 or any other tax questions, please do get in touch.

Making Tax Digital checklist – how to ensure you are ready for MTD

MTD Checklist

Sage.com have published a useful checklist to ensure you are ready for MTD which can be viewed here :

Making Tax Digital checklist: How to ensure you’re ready for MTD

From the 1st April 2019, UK businesses which are VAT-registered will need to submit their VAT returns using compatible software, all as part of plans from the HMRC for Making Tax Digital.

Any businesses whose VATable turnover is above the VAT threshold will have to submit their returns from April 2019 using software.

The 4 parts of the checklist are :

  • How to figure out if your business will be impacted by Making Tax Digital for VAT
  • How to work out which of your business processed need to be adapted
  • How to ensure you have the correct software
  • Work out when to make the switch to Making Tax Digital for VAT

Once you have read the article, if you have any questions about the topic, or any other accountancy questions, please do get in touch.

Useful links

HM Revenue & Customs
Companies House

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