Fact sheets: Personal Tax

The cost of purchasing capital equipment in a business is not a revenue tax deductible expense. However tax relief is available on certain capital expenditure in the form of capital allowances.

Over the coming years, the government will phase in its landmark Making Tax Digital (MTD) initiative, which will see taxpayers move to a fully digital tax system.

In this factsheet we outline some of the key issues for individuals including the Personal Tax Account and Simple Assessment.

Small companies, which qualify as ‘micro-entities’, have a choice of accounting standards:
• to use the same accounting standard – FRS 102 – as larger UK companies but using a reduced disclosure regime (section 1A) within the standard, or
• to apply an alternative standard - FRS 105.

There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension:

• Workplace pension schemes
• Personal Pension schemes.

Alongside the changes from April 2015 to the access of pension funds, significant changes were made to the tax treatment of pension funds on death. This fact sheet summarises the rules which may allow a pension fund to pass free of all taxes on the estate of the deceased and free of all taxes on the beneficiaries of the pension fund.

Dividend and savings allowances are available. We consider the opportunities and pitfalls of the personal tax rules.