December 2022 Newsletter | Cylchlythyr Misol Rhagfyr 2022
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With the 31 January 2023 tax payment deadline looming, you may be thinking "where is my HMRC payslip?". HMRC have confirmed they are not obliged to send a payslip through the post as online banking facilities are available for tax payments.
If you have tax amounts due by 31 January and have not received a payslip through the post, don't forget to pay!
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There has been a rise in the number of contested probates in England & Wales, with one of the main causes being the prevalence of DIY wills. We recommend you engage with a professional to draft your will, to avoid complications and disputes in future.
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Some individuals / businesses may be contemplating short term loans to help pay bills. Do the maths and ensure that interest charged is relatively low, say 4% - 7%. One new marketing trend used by unscrupulous loan providers is to quote monthly, not annual interest. A 3% per month loan equates to 36% per annum!
Also beware funds offering short term loans for a claimed 0% interest. One provider is offering a short-term, 3-month loan to businesses quoting 0% interest. However, they charge a fee of 3%. Interest by another name.
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For employees who have both undergraduate student loans and postgraduate student loans, please be aware that if your income exceeds certain thresholds, student loan deductions for both loans will be deducted from your pay.
For those who are self-employed, repayments for both the undergraduate loan and postgraduate loan will be added to your self-assessment tax bill. This can lead to a very high marginal rate of tax for the self-employed, when also including National Insurance charges (44% for basic-rate taxpayers and 64% for higher-rate taxpayers!).
Ask Huw and Aled: I have some capital gains tax to pay after the sale of an investment property. Are there any reliefs I can claim to reduce the Capital Gains Tax liability?
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You can offset the costs of buying and selling the property including stamp duty, estate agent and solicitors’ fees.
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If you have made any major improvements to the property which have not been claimed against rental income these can be included, costs such as new extensions / bathrooms / kitchens but not general maintenance.
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You can offset losses on other assets against the gains. If you have lost money on investments / collapsed cryptocurrencies consider selling these assets to realise the losses to offset the gains if there is little hope of an increase in value of the investments.
Nadolig Llawen a Blwyddyn Newydd Dda!
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Merry Christmas and Happy New Year!
