The Chancellor’s budget announcement provided a rare piece of good news for landlords who run a property letting business. Tucked away in his speech was a brief reference to the fact that they will now be able to claim the mileage allowance when they visit their tenanted properties.
Landlords, particularly those with larger property portfolios, can spend a significant amount of time travelling to their properties in order to conduct checks, address issues for tenants and perform routine maintenance tasks.
Normally they would use their own vehicle for such travel, and currently they are able to claim a proportion of the running costs as business expenses. However, this is a complex calculation that involves estimating the share of maintenance, servicing and other costs that are attributable to business usage of the vehicle.
The announcement suggests that, instead of estimating the share of actual costs, landlords will be able to claim a mileage allowance in much the same way that employees do when they use their own car for business travel.
We expect further details to follow, but given recent budget announcements – particularly last year’s 3% SDLT surcharge on the purchase of second or additional properties – this particular tax break should not be overlooked.
The draft reforms for the off-payroll legislation, commonly known as IR35 have now been published by the Government and are contained in the Finance Bill 2019-20.
HMRC has announced a one year delay on the implementation of VAT reverse charge to 1 October 2020. Whilst this is good news for construction businesses who were not yet prepared, it may cause additional work for those businesses who were ready to go.
Introduction of the reverse charge for construction services has been delayed and now takes effect from 1 October 2020. A business supplying goods or services is normally required to charge VAT and declare this to HMRC. However, with some UK specified supplies, the supplier does not charge and collect VAT on the supply. Instead, the customer is required to account for output tax to HMRC. This VAT is recoverable, subject to the normal rules and the mechanism is called the reverse charge.
On 1 April 2013, the government introduced the Annual Tax on Enveloped Dwellings.
In his speech yesterday, Chancellor Philip Hammond demonstrated his commitment to the principle of the Spring Statement as a low-key event, at least in terms of tax and public spending announcements.
With the 5 April rushing towards us and heralding the start of a new income tax year, some changes to bear in mind going forward.
There’s no better time to be nice to staff and customers than at Christmas. But the tax man is less generous than Santa and there are certain clauses you need to be aware of before you start popping £50 notes into envelopes to hand out over mulled wine round the office tree.
If you inherit property, there is usually no Stamp Duty Land Tax (SDLT), unless the beneficiary is paying money into the estate or paying other beneficiaries. However, there are an increasing number of people getting caught up in an SDLT ‘trap’ when circumstances relating to the inherited property change.