Focussed On Brexit?

What About The Tax Year End Only 1 Week Later?

With all the understandable concerns about the effect of Brexit on business, it’s easy to forget other things, such as the tax year ends only 1 week later.

At least we have some control as to what we might do before the tax year end!

If you let out a residential property, you shouldn't underestimate the effects of some important changes to the tax rules.

Tax is like any other cost. It reduces the return you get from your asset. Therefore if your tax cost increases, your return decreases and this may affect your view as to whether your property remains a good investment.

Meaning the baby, not the Chancellor!

If his father's only income was his RAF's officer income, with a salary under £50k, and with a non-earning mother, they would receive the full child benefit of £20.30 per week, or £1,055.60 per year until as late as 31 August 2033 if he is in qualifying education or in the armed forces by then.

If his father receives a pay rise in the next 16 to 20 years, taking his income over £50k, child benefit is reduced or if it reaches £60k, becomes £NIL. This assumes the thresholds aren't increased with wage inflation which is probably the intention.

When you spend money on your buy-to-let property, you expect to get a tax deduction against the rents received to help keep your tax bill down.

For those with children, this is even more important if your rented property might take you into the 'no-go' £50,000 - £60,000 income level where child benefit might be reduced or taken away completely.

With residential properties, costs like agent's fees and gas certificates are easily deductible. But what about the costs of white goods and furniture?