income Tax

Question 1

What is the marriage allowance?

Answer 1

If either born before 6 April 1935. It benefits a couple where there is an unused personal allowance and the other is a basic rate tax payer
Maximum saving is £252 0r (£1260 x 20%)

Question 2

What is the blind person’s allowance and is this transferable to spouse?

Answer 2

It is £2870 and additional to the personal allowance
You can transfer your Blind Person’s Allowance to your spouse or civil partner if you do not pay tax or cannot use all of it.

Yes it can be transferred

Question 3

At what income level does the starting rate band disappear?

Answer 3

When income exceeds £17570 there would be no starting rate band available.

Question 4

Tax avoidance - DOTAS legislation and penalties:

Answer 4

• DOTAS (Disclosure of Tax Avoidance Schemes)
  
  • Finance Act 2004 - UK, must register with HMRC.
    If used by must use registration number on their tax-returns.
• If number has been defeated in court, HMRC issues a follower notice and expects to be paid any tax-avoided as a result
  
  • Promoters must give HMRC list of clients using scheme quarterly.

Penalties failure to notify HMRC may include a daily penalty of up to £5,000.
* Finance Act 2014 reinforces DOTAS rules: HMRC can force taxpayers to settle disputes where schemes have been defeated in court. If they do not settle, penalty is 50% of disputed tax.
* Accelerated Payment Notice can be issued requiring payment of tax up front within 90 days where scheme has not yet been to court.