Contact me on 020 8819 8673 or andrew.cazalet@lidotax.co.uk

About Andrew Cazalet

UK International Tax advice for global individuals business

Chartered Tax Adviser with over twenty years experience in tax based at Ealing Studios London.

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About Andrew Cazalet

UK International Tax advice for global individuals business Chartered Tax Adviser with over twenty years experience in tax based at Ealing Studios London.

Some thoughts and information re the Budget 2009

New Higher Rates of Tax

The new marginal rate of income tax of 50% applies to income over £150,000 starting from April 2010. This is above the planned increase of 45% and a year earlier! What has been less publicised is the progressive withdrawal of the tax free personal allowances by £1 for every £2 income exceeds £100,000. This means those earning between £100,000 and £112950 suffer a marginal rate of income tax of 60%.

Where possible it would seem sensible to advance income and pay tax now before 5 April 2010 at only (!) 40%. Or consider using a company to control the extraction of profit or maybe share options possibly taxed as capital gains at only 10-18%?

Further Extension of Carry Back of Trading Losses

The ability to carry back losses of up to £50,000 up to three years (instead of just one under the old rules) has been extended for unincorporated businesses to 23 November 2010 ie tax years 2008/09 to 2009/10. For limited companies the extension applies to those with accounting periods ending between 24 November 2008 and 23 November 2010.

Help with Time to Pay Taxes

The Business Payment Support Service http://www.hmrc.gov.uk/pbr2008/business-payment.htm has been instructed to accept “time to pay” arrangements in a wider range of circumstances. The advisers have been asked to take account of reasonable estimates of current year losses in pressing for previous years taxes.

Relief for Pension Contributions restricted at Higher Rates

From 6 April 2011 the relief for pension contributions for higher rate taxpayers earning above £150,000 will be restricted gradually so that those individuals with an annual income of £180,000 or more will effectively receive only a 20% tax deduction, the same as a basic rate tax payer. This may mean that some individuals will only receive relief at 20% but will later be taxed on their pension income at 50%.

Furnished Holiday Letting Relief to be abolished

The relief for loss making short term letting businesses will be abolished from 6 April 2010. These rules currently allow the offset of losses often made on holiday letting income against other taxable income subject to certain conditions.

However in the meantime HMRC does accept that it cannot discriminate as it did previously against individuals owning property in the EU – as opposed to in the UK. This means properties within the EEA area now qualify for relief until it’s general abolition in April 2010.

Budget Funny!

Some tweets below captured live on Wednesday from inside the Treasury (allegedly)

“ BUDGET CONSULTATION: Please tweet us your ideas for the Budget as Alistair has not got a clue. The final TwitBudget will be published here.

BUDGET2009. Treasury msg to HMRC: Sh+tting ourselves here, we haven’t finished writing the Budget yet and Alistair has gone AWOL

Budget2009 update: Alistair has locked himself in the toilet and won’t come out. Gordon has called in MetPolice to break down the door.

Budget2009: Back of fag packets currently being assembled into final document

#budget09 Alistair forgot to say “minus” before the growth forecast figures for 2010 and 2011. Next government’s problem anyway “

Hat tip for that to http://twitter.com/HMRevenue

You can follow me on Twitter http://twitter.com/andrewcazalet

There is a good summary of the main general Budget provisions here

Please do get in touch if you have any questions or clarification. Feel free to pass this on if you know anyone who might be interested.

Would you like to help your artiste reduce their tax bill whilst on tour or competing in the UK?

I have recently started doing more work again on reduced rate applications submitted to the Foreign Entertainers Unit at HMRC. Along with many other countries, in the UK income arising to non UK entertainers and sportspeople is subject to Withholding Income Tax at 20% (22% before 5 April 2008). This is charged even if the artiste provides their services through a corporation.

Under the terms of most UK double tax treaties there is a clause excluding the services of entertainers and sportspeople from the “independent services” provision. This means they are taxable here even if they are not tax resident in the UK and do not have a permanent establishment or place of business here.

However many people are still not aware that it is possible to approach the Revenue authorities beforehand to agree that the withholding is based on the projected profit rather than the gross income. This will usually mean that the artiste has no further income tax to pay and probably will not be asked to complete a UK tax return.

The artiste will usually obtain tax credit for the FEU UK deducted through his or her overseas tax return. However under many countries’ domestic tax legislation the tax payer is required to mitigate his or her liability as far as possible otherwise they will only get credit for the tax that was due in the UK not just the possibly higher amount they actually did pay on gross turnover. It is not enough therefore just to pay the tax and expect to get credit for it back in the home country. Relief may be restricted.

I have over ten years experience in this area with major and upcoming artistes and would pleased to help any clients legitimately reduce their UK tax liabilities.

A little light Christmas Cheer below…

I spotted this in the readers queries section of the leading magazine for tax advisers – Taxation a message from a seasonal character seeking help with his tax affairs.

SeasonsGreetings Ealing Tax consultant

“ Seasonal tax

On a visit to the UK last year I picked up a copy of your magazine and wonder if readers can advise me. I am non-domiciled and non-resident (I think) in the UK – no permanent home here – but each year I work temporarily in the UK for a short period.

The work is unpaid, but I do receive benefits in kind; glasses of port, mince pies and the like. I am rather concerned that I have not declared these to HMRC in the past. Should I have done so and is there an annual tax liability to be paid on these gifts or benefits? And if there is, how is the tax calculated under self assessment? “

Best Wishes for a Merry Christmas and Happy New Year

Tax Consulting Services offered in London

As a firm of specialist Chartered Tax Advisers with over twenty years of experience we are confident we can save most businesses and families money. We will review your accounts and financial affairs at no charge and make suggestions to save you tax. All this usually involves is rearranging your tax and business circumstances to take advantage of legally available reliefs for those in different circumstances. We will then give you a fixed fee quote to implement the strategy.

If you want to continue with your existing accountant for compliance services – tax returns, accounts etc we are happy to work alongside him or her. If you want a quote for a full comprehensive service we can of course provide this.

We are based in West London but provide tax advice and tax consulting services for all areas of Central and West London – West End, Ealing, Mayfair, Knightsbridge, Chiswick, Fulham, Chelsea, Notting Hill, Belgravia, Bayswater, Kensington, Ladbroke Grove, Kingston, Marylebone, Barnes, Putney, Richmond, Wandsworth, Kew, Putney and beyond.

We have many testimonials from happy clients here . Please call Andrew on 079415 80062 to start the conversation.

Tax Advice services in West London

I have had a few kind remarks on the postcard I created to promote my presence in Ealing Studios.

The picture is below for those who have not seen it.

Ealing_Studios Tax Adviser

As a quick reminder we are pleased to provide tax advice, tax consulting and tax return services as a tax consultant to those in West London – Ealing, Chiswick, Knightsbridge, Chelsea, Fulham, Notting Hill, Belgravia, Bayswater, Kensington, Ladbroke Grove, Marylebone, Barnes, Putney, Richmond, Wandsworth, Kew, Putney and beyond.

The drawing of Ealing Studios is by a very talented friend of ours Stella Swain. She does lots of lovely pictures – mainly sort of like this one. She does business or private commissions and is very reasonable. She can be contacted on   01962 854 275  stella.swain@ntlworld.com www.stellaswain.com

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