In a tradition dating back to 1752, this Thursday April 6th, marks the beginning of a new tax year. So, should we be celebrating on the HMRC’s “New Year’s Eve”?
There are a number of changes coming in this April and we have some reasons to celebrate:
For starters April’s net pay should be slightly more than before. The increase in personal allowance from £11,000 to £11,500 and the adjustment of the income tax bands will make you better off. Savers will have some welcome changes too; the maximum allowance is increasing for ISA’s and new Lifetime ISA’s will be launching. Those wishing to minimise their IHT liabilities will notice additional IHT nil rate band of £100,000 will be available to them if they are transferring their main residence. Company directors will be pleased that they will be able to use carry forward losses against more than just profits of the same trade.
However, as is always the case, not everyone is a winner. Landlords will be worse off as they will no longer be able to get full tax relief from their finance costs. Changes to the VAT Flat Rate Scheme will hit service-based businesses in higher payments of flat rate VAT. Finally, the dreaded IR35 for the public-sector changes kick in.
So whether it’s a happy new tax year or not just depends on who you are. To keep in touch with changing requirements, please get in touch with your local AIMS accountant
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