Today, RITA4Rent wish to criticise the Clause 24 changes, not least for the common reasons, but also for those unreported dangers we hope to raise awareness on.
Whilst everyone has been focusing on the additional tax that may be payable following the changes to finance costs claims, better known as Clause 24, there is something lurking in the background which has gone largely unreported.
According to the government:
“The measure is not expected to impact on family stability”
AND
“It will only affect the wealthiest landlords”
True or False?
Well….
Bear in mind that landlords will now be reporting an inflated profit on their self assessment tax returns. This now inflated income, would need to reported for the following:
• Child Benefit
• Tax Credits
• Student Loans
Therefore, some of those basic rate taxpayers, who will remain basic rate taxpayers, who think they will be unaffected, think again !!
If applicable to you, you may lose some if not all of your child benefit, tax credits and see an increase in student loan payments.
It may also cause restrictions in HMRC’s much publicised marriage allowance.
Quite a hit for families, and those less wealthy!
So today, RITA4Rent joins the active voice criticising these changes.
For any of your property tax needs, please do not hesitate to contact RITA4Rent on freephone 0800 1 22 33 57, via email, or by visiting our website www.rita4rent.co.uk
Further Reading:
The 7 Dangers of a DIY Tax Return
Important Let Property Campaign Update
Let Property Campaign Client Testimonial February 2015
HMRC Let Property Campaign – Recent Successes
HMRC Let Property Campaign – A Testimonial
HMRC Disclosure Form DO2 Delays
Let Property Campaign letters sent out by HMRC – The Second Wave
Let Property Campaign – Tip No. 1
LET PROPERTY CAMPAIGN – TIP NO. 2
LET PROPERTY CAMPAIGN – TIP NO. 3