December 2021 Newsletter | Cylchlythyr Misol Rhagfyr 2021
With the 31 January 2022 tax filing and payment deadline looming, you may be thinking "where is my HMRC payslip?". HMRC have confirmed that they are not obliged to send a payslip through the post because 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! If you wish to pay by cheque, contact your accountant who can create a HMRC payslip on your behalf.
From 19 January 2021, Amazon will stop accepting Visa credit cards. If you have linked your Visa credit card to your Amazon account, you may need to update your details in order to avoid any membership cancellations in the New Year.
In most cases, if you are self-employed and have been using your personal current account for your business, your bank could ask you to switch to a business account going forward. Check your bank account T&Cs and if you are unsure, call your bank to find out whether you can continue to use your personal account or whether a separate account needs to be opened for your business.
In 2019, NS&I changed the way that interest was paid on some of their investment bonds. Instead of being paid annually, interest is now all paid in the year in which the investment matures. This can lead to a significant amount of interest becoming taxable in the same year.
As the first batch of bonds start to mature, we are seeing some cases where the interest earned exceeds the tax-free allowance. Careful planning is now required to avoid exceeding the savings interest tax-free allowance.
Ask Huw & Aled: I own 2 buy to let properties in my sole name. I wish to transfer one property each to my wife and daughter. What are the capital gains tax implications?
Transfers of assets between spouses are exempt from capital gains tax and there will be no tax on the gift of property to your wife.
The gift to your daughter will be treated as a disposal of the property at the current market value and thus be liable for capital gains tax at the appropriate rate. The most likely way to maximise tax efficiencies is to first gift half of the property to your wife. Once this is completed you can each transfer your 50% shares in the property to your daughter and both claim your personal tax-free allowance for capital gains of £12,300.
Nadolig Llawen a Blwyddyn Newydd Dda!
***********
Merry Christmas and Happy New Year!
