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With the election behind us the first Labour Budget will be on the 30th October. In this edition we highlight some of the outcomes from the general election around personal and business. With a commitment not to increase the core revenue-raising taxes of income tax, national insurance and VAT, speculation is centering around capital gains tax and inheritance tax.
The articles in this issue are:
- Outcomes from the general election In her first speech as Chancellor of the Exchequer Rachel Reeves outlined her plans to ‘rebuild Britain’ and reiterated the government’s commitment not to increase national insurance, income tax rates and VAT.
- Understanding adjusted net income The personal savings allowance and dividend allowance are often misunderstood because any income covered by the two allowances still counts towards a taxpayer’s adjusted net income figure.
- CGT private residence relief You are probably aware that the sale of a main residence is generally free of capital gains tax (CGT) but, when CGT does come into play, the rules can be complex.
- Opting out of the cash basis – pros and cons Cash basis accounting is now the default method for self-employed individuals and partnerships, but you can opt out and carry on using the accruals basis instead.
- Topping up your missing NICs online The government has recently launched a new digital service which should make it easier for people to check for any gaps in their national insurance contribution (NIC) record. They can then pay securely through this service.
- Getting in early for MTD HMRC is on track to meet the April 2026 delivery date when Making Tax Digital (MTD) will be mandated for the first tranche of self-employed taxpayers. Although you may be tempted to put off setting up new working practices, there could be some advantages in joining early.
We hope you enjoy reading the newsletter. Please get in touch if you need help or advice on any of the topics covered.