Proposed IHT Changes for Pension Pots The government has released draft legislation for the upcoming Finance Bill that could bring unused pension pots within the scope of inheritance tax (IHT) starting 6 April 2027. Naturally, this has prompted many savers to wonder — should I withdraw my pension now to avoid the potential tax hit later? Before rushing into […]
When Tenants Refuse to Leave For many landlords, few situations are more stressful than dealing with tenants who refuse to vacate a property — even after being served a valid Section 21 or Section 8 notice. Unfortunately, this leaves landlords with no choice but to go through the eviction process, which involves both time and […]
When renting out a property, landlords usually request a deposit from tenants — often called a security deposit, damage deposit, or rental deposit — to cover potential property damage or unpaid rent. In some cases, a holding deposit is also taken to temporarily reserve the property while paperwork is processed.Knowing how to correctly handle these deposits for tax purposes is essential for landlords. […]
Introduction Umbrella companies are often used by recruitment agencies to pay temporary or contract workers. While many operate legitimately, a growing number are involved in tax avoidance and non-compliant schemes. To protect workers, HMRC is increasing efforts to tackle umbrella company fraud — including publishing Spotlight 71, which outlines key warning signs to watch out for. If you’re […]
New IHT Rules for Unused Pension Benefits from April 2027 From 6 April 2027, inheritance tax (IHT) will apply to unused pension funds and death benefits left in an estate. Announced in the Autumn 2024 Budget, this change will increase the IHT burden on estates where pension wealth is passed on after death and not fully sheltered by available […]
VAT Adjustments: Understanding Payback and Clawback Rules Even with the best planning, business intentions can change — and with VAT, that means adjustments may be needed. HMRC’s “payback and clawback” rules ensure VAT claims reflect actual use, not just initial intentions. These rules only affect input tax (VAT on purchases), and can require businesses to either reclaim more VAT […]
Most people hope their estate will be shared according to their wishes. But if you die without a will (known as dying intestate), the law decides who gets what. The distribution depends on the value of your estate, whether you were married or in a civil partnership, and if you had children.(Note: These rules apply to […]
Loans from a personal or family-owned company to its directors aren’t unusual — but when those loans are written off, the tax and National Insurance implications can catch people off guard. HMRC has recently been paying closer attention to this area, even contacting individuals whose loans were released or written off between 6 April 2019 […]
Bad debts are an unfortunate reality for most businesses. When customers don’t pay, it impacts cash flow, profitability, and overall financial stability. But beyond the cash loss, there’s also the VAT question: should you issue a credit note or claim bad debt relief (BDR)? While both options adjust VAT, the rules are very different—and choosing the […]
Taxation in a Partnership: Who Pays What? In the UK, a partnership is not treated as a separate legal entity. Instead, the individual partners are responsible for tax and National Insurance contributions (NICs) based on their share of the partnership’s profits or losses. Each partner is taxed as if they are a sole trader, paying Income Tax on their […]