Tax rates, allowances and reliefs
This guidance provides a summary of key tax rates, allowances and reliefs for 2017/18, 2018/19 and 2019/20.
Income tax
Expert commentary and practical guidance from ICAEW related to income tax in the UK personal tax regime.
Need to know
In this section
Features and articles
The HMRC digital roadmap
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
Roadmap announced for Making Tax Digital
21 July: MTD for VAT extended to all VAT-registered businesses from April 2022, with income tax quarterly reporting applying from April 2023. Corporation tax will be consulted on later this year.
HMRC confirms top slicing relief calculations for 2019/20 onwards
29 June 2020: HMRC has confirmed its position on top slicing relief on life insurance policy chargeable event gains for 2019/20, but the position for earlier years remains uncertain.
Clearing up the confusion over off-payroll working
The delayed start date for off-payroll working is welcome as the new off-payroll working rules are obviously confusing many people. David Heaton tries to clarify some of the puzzling points.
COVID-19: Employer returns accepted via email
29 May 2020: Employers can file their Appendix 4, 7A and 7B end-of-year reports by email, HMRC has confirmed.
Breaking down Finance Bill 2020
Lindsey Wicks summarises the contents of Finance Bill 2020, which covers loan charges, pensions, chargeable gains and more.
Upcoming changes to tax in April 2020
Lindsey Wicks looks at the measures set to apply from April 2020, and raises concerns that some still lack clear guidance from HMRC.
COVID-19: Don't lose sight of marriage allowance
24 March: ICAEW's Tax Faculty is urging members not to forget the marriage allowance and the potential support it could offer couples in these uncertain times.
Webinars and recordings
TAXbite: Off-payroll working from April 2020
An overview of the new off-payroll working rules in the private sector from 5 April 2020
Off-payroll working (or IR35): an overview
The first in our TAXbite series on off-payroll working, this episode gives a general overview of the rules.
TAXbite: Rent a Room Relief
This free TAXbite explains the rules for rent a room relief and how to apply if you or your client qualifies.
TAXbite: Who needs to file an income tax return?
Who is obliged to to file a self assessment return and how does the system work for those who don't?
Employment tax round up - 2018
This webinar aired on 13 February 2018, just before Scotland's major shake-up of income tax. In it payroll consultant Kate Upcraft and ICAEW’s Peter Bickley explore what this means for agents and taxpayers, and look at a myriad of other changes in the payroll arena as we approach the start of the new tax year.
An elementary guide to the Taxation of UK trusts
First broadcast 10 November 2016 - In this practical webinar Sarah Ghaffari and Sue Moore will talk through the lifecycle of a trust, highlighting which taxes are payable, when and by whom.
Practical guidance
TAXguide 12/15
Reforms to the Taxation of Non Domiciles - Meeting notes
TAXguide 08/15
Non-domiciliary announcements made at summer budget 2015
TAXguide 05/15
Company Directors - PAYE Real Time Information. A questions and answers guidance note.
TAXguide 01/12
The aim of this TAXGUIDE is to provide guidance on some of the practical points that members have encountered on the application of entrepreneurs' relief (ER). Guidance published by the Tax Faculty on 25 January 2012.
Markel Tax FAQs
Questions and answers on UK tax issues and trends from the ICAEW Tax and VAT Helpline, a subscription service provided by Markel Tax.
Markel Tax FAQs are correct at the time of going to press. To check current validity, please call the ICAEW Tax and VAT Helpline.
eBooks
The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.
Taxation: Finance Act 2019
The main aim of this book is to describe the UK taxation system in sufficient depth and with sufficient clarity to meet the needs of those undertaking a first course of study in taxation.
Income tax
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter on accounting for income tax gives a comparison of FRS 102 Section 29 and IFRS, and covers VAT and similar sales taxes, current tax, recognition and measurement of deferred tax, allocation of tax charge or credit, consolidated tax returns and offset of taxable profits and losses within groups, presentation, and disclosure.
Partnerships
A full chapter on the taxation of partnerships, including limited partnerships and LLPs. The key piece of legislation is the Income Tax (Trading and Other Income) Act 2005.
Chargeable gains
Covers chargeable gains for corporation tax purposes, with additional sections on dividends received, payments to charities, distributions, computation of tax liability, losses, groups, and the way corporation tax relates to income tax.
Vouchers and credit tokens exempt from income tax
Outlines the tax exemptions for vouchers and credit tokens offered to employees under the Income Tax (Earnings and Pensions) Act 2003. This includes both income tax and class 1 national insurance contributions.
Readily convertible assets
Explains how these assets are defined and valued under the Social Security (Contributions) Regulations 2001 and the Income Tax (Earnings and Pensions) Act 2003. This section is of particular relevance to payroll managers handling benefits in kind.
Employment income
A long chapter on employment taxation in the UK. Covers NICs, income tax, and all the circumstances where a person may derive income or benefits from their employer.
Property income
An overview of taxation of property as it pertains to small businesses in the UK, determined by the Income Tax (Trading and Other Income) Act 2005. This chapter has sections on the basis of assessment, relief for capital expenditure, losses, and furnished holiday lettings (FHLs).
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Representations
ICAEW REP 03/20 Off-payroll working frm April 2020-draft PAYE and social security contributions regulations
A response dated 19 February 2020 to a consultation published by HMRC on 22 January 2020.
ICAEW Rep 30/18
Tax relief for training
ICAEW REP 29/18
MTD - Interest harmonisation and sanctions for late payment
ICAEW Rep 18/18
MTD – Draft value added tax (amendment) regulations & notice 2018
Further support
Useful links
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
HMRC webinars and videos: Help and support if your business is affected by coronavirus (COVID-19)
<p>The latest videos from HMRC outlining the support for businesses such as the Coronavirus Job Retention Scheme, refunding eligible Statutory Sick Pay costs, furloughed employees and more. HMRC also runs live webinars covering the deferral of VAT and Income Tax payments, the small business grant scheme and Coronavirus Business Interruption Loan Scheme.</p>
Coronavirus Business Support
<p>Government portal listing the full range of support measures available for UK businesses with information on how to access financial support packages, who is eligible, when the schemes open and how to apply. These cover the Coronavirus Business Interruption Loan Scheme; business rates holiday and cash grants for retail, hospitality and leisure; small business grant funding; SSP rebate; VAT and income tax deferral. There is additional separate guidance for businesses in <a href="https://www.gov.uk/guidance/coronavirus-covid-19-information-for-individuals-and-businesses-in-scotland">Scotland</a>, <a href="https://www.gov.uk/guidance/coronavirus-covid-19-information-for-individuals-and-businesses-in-wales#businesses">Wales</a> and <a href="https://www.gov.uk/government/news/covid-19-guidance-information-for-ni-businesses-employers">Northern Ireland</a>.</p>
Cryptoassets for individuals
Policy paper setting out HMRC's view on how individuals who have cryptoassets (or cryptocurrency) are taxed. It explains what cryptoassets are, which taxes apply with detailed discussion of income tax and capital gains tax, cryptoassets received as earnings, and record keeping.
Trusts and taxes on GOV.UK
An overview giving information and guidance on types of trusts, how trusts are treated for income tax, CGT and inheritance tax purposes, tax for trust beneficiaries, and the tax reponsibilities of trustees.
Tax on dividends
Guidance on taxable investments explaining how dividends are taxed, including the dividend allowances in each tax year and the tax rate on dividends over your allowance. It also provides guidance on the different rules for dividends before 6 April 2016.
Tax on foreign income
Guidance aimed at taxpayers covering UK residence and tax, non-domiciled residents, paying tax on foreign income, exemptions, claiming tax relief, and tax for foreign students in the UK.
Welsh taxes
Official information on devolved taxes in Wales with links to further guidance on and rates for Landfill Disposals Tax, Land Transaction Tax, and income tax.
Tax Journal: Employment Taxes
Articles on employment taxes from Taxation magazine. Full articles available to subscribers or through the ICAEW Library & Information Service.
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