Property Archives - WRLO Accountants

Permanent business rate cut for high street on the way

WRLO Accountants — Fri, 22 Nov 2024 12:54:18 +0000

The government has published draft legislation to permanently cut business rates for retail, hospitality and leisure properties from 2026. The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses, the government added. Until then, 250,000 retail, hospitality and leisure (RHL) properties will receive 40% relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system. This support is alongside the Budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties. James Murray, Exchequer Secretary to the Treasury, said: ‘For too long the business rates system has been working against our high streets. ‘[This] is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed. ‘This Bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.’ Internet link: GOV.UK

The post Permanent business rate cut for high street on the way appeared first on WRLO Accountants.

HMRC has warned landlords to disclose their earnings on self assessment tax returns.

WRLO Accountants — Fri, 15 Nov 2024 13:45:42 +0000

The tax authority has clarified the guidance on who can participate in the Let Property Campaign, which is targeted at landlords who owe tax through letting out residential property in the UK or abroad. Landlords can report previously undisclosed taxes on rental income to HMRC under the Let Property Campaign if they are an individual landlord renting out residential property. The campaign covers landlords who rent out single or multiple properties, rent out a room in their main home that exceeds the Rent a Room Scheme threshold and holiday lettings. It is also important to note that, for those living abroad or intending to live abroad for more than six months and renting out a property in the UK, those earnings may still be liable to UK taxes. Tax must be paid on any profit made from renting out property. The profit is calculated based on the amount left once claims for expenses or allowances have been deducted. HMRC warned: ‘If you’re a landlord and have undisclosed income, you must tell HMRC about any unpaid tax now. You’ll then have 90 days to work out and pay what you owe. If you do not do this now, and HMRC finds […]

The post HMRC has warned landlords to disclose their earnings on self assessment tax returns. appeared first on WRLO Accountants.

HMRC publishes guidance on MTD for ITSA for sole traders and landlords

WRLO Accountants — Fri, 01 Mar 2024 17:52:38 +0000

HMRC has published guidance on the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requirements for sole traders and landlords. MTD for ITSA will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter via compatible software. In the guidance, HMRC stated that MTD for ITSA will be introduced in two phases: from April 2026 for those with qualifying income over £50,000 from April 2027 for those with qualifying income over £30,000. HMRC said that MTD will exploit ‘the opportunities offered by digitalisation to make it easier for everyone to get tax right’. It said that digitalising government tax services helps to reduce the risk of unintentional customer errors; saves taxpayers time when they submit their tax returns; supports wider productivity and less time managing paperwork; and enables HMRC to better tailor its services to its customers. In its latest guidance, HMRC estimates an average transitional cost of £115 for businesses mandated to use MTD for ITSA. Businesses within the £30,000 to £50,000 threshold are estimated to incur an average cost of £350 while those above £50,000 may incur an average cost of £285. Internet link: GOV.UK

The post HMRC publishes guidance on MTD for ITSA for sole traders and landlords appeared first on WRLO Accountants.