We are hosting our first Live Webinar!
On Thursday 16th January 2025 at 5pm. Join us and learn more about Business Property Incorporation, Family Investment Companies and related tax matters.
Chris and Jagrup, in partnership with James Butterworth from Croner-I VIP Tax team will be talking about:
- If, how, why and when to consider moving your investment property from personal ownership into a limited company.
- Family Investment Companies: Should you consider for inheritance tax or do you already have property in an FIC and want to make changes?
Tax & Accounting
Self Assessment Tax Return for 6th April 2023 – 5th April 2024
The deadline to submit your self assessment tax return and pay any tax owning is 31st January 2025. If you have not yet sent in your information for us to complete your return, please do so as a matter of urgency.
HMRC issue fines separately for Late Submission (even if you have no tax to pay) and Late Payment.
Note: Interest for late payment of tax due will also be accrued.
| Late filing | Late payment | Penalty (Cumulative penalties can apply) |
| Miss filing deadline 31st January (online filing) | 100 (even if there is no tax to pay) | |
| 30 days late | 5% of tax due | |
| 3 months late | Daily penalty £10 per day for up to 90 days (max £900) | |
| 6 months late | 5% of tax due or £300, if greater. | |
| 6 months late | 5% of tax outstanding at that date | |
| 12 months late | 5% or £300 if greater | |
| 12 months late | 5% of tax outstanding at that date | |
| 12 months & taxpayer deliberately withholds information | Based on assessment: | |
| deliberate and concealed withholding 100% of tax due, or £300 if greater. | ||
| deliberate but not concealed 70% of tax due, or £300 if greater. | ||
| Reductions may apply for prompted and unprompted disclosures. |
Scam Alerts.
Stay vigilant. Fraudsters are targeting people with offers of tax refunds or demanding payment of tax to get hold of personal information and banking details. Around half of all scam reports in the last year were fake tax rebate claims.
HMRC will not contact you by email, text, or phone to announce a refund or ask you to request one.
If you or someone you know receives communication claiming to be from HMRC that asks for their personal information or is offering a tax rebate, check the advice on GOV.UK to help identify if it is scam activity.
Check your Tax Code
Have you had a change to your tax code? Are you unsure why? Check it!
Short term changes to your income can cause HMRC to generate a new tax code. This is not always of benefit to you may result in you paying more tax, or even, less than you should and having to repay tax owed (an unpleasant experience for everyone!)
Events which may trigger this can include:
- One-off in pension payments
- High Income Child Benefit Charge
- Short term changes in income (eg, a contractor who works for 6 months at a high salary but the rest of the year on basic income)
If you have received a notification of change to your tax code from HMRC, it is always worth checking with us to ensure that your overall tax position is correct.
Furnished Holiday Lets (FHL) & Business Asset Disposal Relief (BADR)
Since the governments confirmation of the changes in taxation policy regarding FHL during the last budget, there has been some more clarification of FHLS released.
One area of uncertainty was in regard to Business Asset Disposal Relief (BADR). The policy note and legislation provide that, where an FHL business ceases prior to 6 April 2025, a disposal of a previously qualifying property within three years of the cessation date would continue to attract BADR, subject to the disposal meeting the other conditions for the relief.
Initially, it was unclear whether there would need to be an actual cessation of the holiday letting activity, or whether the repeal of the rules would mean a deemed cessation arises at 5 April 2025, regardless of whether the letting activity continues.
However, this assumption was based on the original policy note and now that the legislation has been formally released it clearly states that ‘any letting activity’ will mean a continuation of the business’ so therefore no BADR will be due for clients that cease a FHL and turn it into a BTL.
This is obviously very disappointing. The draft legislation and original policy note was very vague on this point and there is a consensus that this leaves FHL owners with little space for planning.
Mortgages
The mortgage press is full of interesting headlines, including Paragon Banks 5 year BTL mortgage, Sheffield being a new BTL hotspot and the doom and gloom forecasts of people pulling out of the BTL market.
Our view, at ground level, is slightly different. We see existing investors continuing with and adding to their portfolio, perhaps with some restructuring along the way. Some are considering aspects such as Inheritance Tax and income protection in more detail.
New investors are naturally hesitant. The scaremongering of the popular press and latest tax changes make them stop and think before investing their hard-earned cash. However, with support and advice from trusted sourcing companies and of course, the added value of investment tax advice from the Tax Team at Calculated, the BTL market is still fluid.
Portfolio Reviews
Do you have mortgages due for renewal in 2025? Speak to Jake about a portfolio review.
As an existing Calculated Tax customer, you already benefit from a £100 discount on our broker fees, with the added benefit of unlimited regular property finance advice.
For remortgages, if the research confirms that a rate switch with your current lender is the best option, this will be submitted on your behalf free of charge, but you benefit from peace of mind, knowing that you have secured the best product for you and that you will be informed 6 months in advance of the next rate expiry to avoid any nasty reversion rates.
Your client manager and mortgage broker are available to discuss your tax or mortgage questions by phone or email, and by Teams meeting on request.
Contact Us:
| Tax & Accounting | 01904 948860 Option 1 | tax@calculateduk.com |
| Mortgages | 01904 948860 Option 2 | mortgages@calculateduk.com |
| Commercial Mortgages | 01904 948860 Option 2 | commercial@calculateduk.com |
