May 2024 Newsletter | Cylchlythyr Misol Mai 2024
- A new online service has been launched to pay voluntary National Insurance contributions. Previously, individuals were required to call a HMRC helpline to obtain a payment reference number, with average waiting times on this helpline at least 1 hour. The payment reference can now be obtained directly via this online service, which can be accessed via your Government Gateway by using the following link:
www.gov.uk/voluntary-national-insurance-contributions
The service is not yet available to the self-employed or to people living outside the UK.
- As a few weeks have passed since the end of the 2023-2024 tax year, individuals may begin to receive tax demands from HMRC entitled "Simple Assessments". These are based on information HMRC hold about the individual. Please check these assessments very carefully as they are often incorrect/incomplete.
In one recent instance, a client for whom a full tax return had been completed, submitted and tax paid received an unexpected tax demand for £300. We successfully appealed, explaining that a tax return had already been submitted, with all tax paid.
Ask Huw & Aled
Q: I own a holiday let and have heard there are tax changes that might affect the ongoing profits of my holiday let and the capital gains tax if I sold the property. Is this correct?
A: Tax reliefs for furnished holiday lets are being abolished from 6 April 2025.
Currently, income tax benefits include full relief on mortgage interest payments and capital gains tax reliefs include the ability to use a 10% capital gains tax rate when selling the property.
These reliefs will no longer be available from 6 April 2025.
We have seen a significant increase in the sale of furnished holiday let properties since these changes were announced in March 2024, with many property owners determined to take advantage of the 10% capital gains tax rate (as opposed to 18% or 24%) when they sell their property.
If you are a holiday let owner and wish to understand how the tax changes will affect your individual circumstances, please get in touch for a tailored individual assessment.
For full details and for worked examples that illustrate the upcoming changes, click here
