Tax

Basic Rate: Getting an Extension

In 2016/17, providing your total income is less than £100,000 you will receive a personal allowance of £11,000 i.e. the first £11,000 of your income will be tax free. After that, your next £32,000 of income will be taxed at the basic rate. For most non-dividend income this will be at 20%. After that, if …Read More

Budget 2016

Budget 2016

Highlights Income tax personal allowance to rise to £11,500 for 2017/18 Introduction of a Lifetime ISA for under 40’s Abolition of Class 2 NI Reforms to corporate tax losses Reduction in the Corporation Tax rate Changes to Entrepreneurs’ relief Budget 2016 Summary The Chancellor’s 2016 Budget contained some important announcements and confirmed a number of …Read More

Marriage Tax Breaks

Marriage Tax Breaks

Marriage Tax Breaks For those who want to leap into marriage this year (according to an old Irish legend, women are allowed to propose to men on 29th February) there are some financial breaks for taking the plunge: Marriage Allowance You may be able to claim marriage allowance to allow you to transfer 10% or …Read More

Benefits In Kind

PAYE: Benefits in kind

PAYE: Benefits in kind (“Payrolling Benefits”) In his Budget, the Chancellor of the Exchequer, announced changes to the way of Benefits in Kind and expenses can be reported to HMRC. “Payrolling Benefits” means putting a value through payroll to collect tax on employer-provided benefits and expenses. On 6 April 2016, there will be a statutory …Read More

Xmas Tree & Accounts

Christmas Tax Tips

‘tis the Season It’s that time of year again! Time to get in the loft to find the Christmas tree… Time to dust off the decorations… Time to replace the lights that were working perfectly well when they got put away on last 12th Night! The sprouts have been simmering since August and now it’s …Read More

Autumn Statement 2015

Autumn Statement 2015

Highlights Doubling of Small Business Rate Relief extended for a further year 3% Stamp duty surcharge for buy-to-let properties and 2nd homes Previously announced Tax Credit Cuts scrapped Apprentice Levy to be set at 0.5% of employer’s wage bill Powers for local governments to set business rates Record level of spending on new houses Autumn …Read More

Associated Companies

Associated Companies

Are you associated? For the financial year to 31 March 2015, Limited Companies paid different rates of Corporation Tax depending on their profit levels. If taxable profits were higher than £1,500,000 then the rate of tax was 21%. If taxable profits were less than £300,000 then the rate of tax was 20% and for profits …Read More

Budget Highlights

Budget Highlights

Further to the Chancellor’s recent Summer Budget, some of the key headlines for our small and medium businesses are as follows: Corporation tax The Annual Investment Allowance has been set at £200k from 1 January 2016 for an indefinite period, giving businesses a chance to plan their capital expenditure. The rate of corporation tax will …Read More

Summer Budget 2015

Highlights Income tax personal allowance to rise to £11,000 in April 2016 New National Living Wage from April 2016 Future cut in Corporation tax to 18% Annual Investment Allowance set to £200,000 from Jan 2016 Permanent non-dom status abolished from April 2017 Employment Allowance increased to £3,000 from April 2016 Pension tax relief annual allowance to …Read More

Rent-a-Room

Rent-a-Room Scheme

UPDATE: As announced in the Summer Budget 2015, as of April 2016 the rent-a-room scheme allowance will increase to £7,500. This is the first increase to this allowance in 18 years. If you provide furnished accommodation in your main home you may qualify for tax-free rental income under the Rent-a-Room Scheme.  If you receive £4,250 …Read More

Entrepreneurs’ Relief and Furnished Holiday Lettings

HMRC back down! Entrepreneurs’ Relief is a valuable Capital Gains Tax (‘CGT’) provision intended to reduce the burden of taxation payable on capital gains made by individuals on certain business assets disposed of in certain circumstances. If you can benefit from entrepreneurs’ relief you can reduce your rate of CGT from the top rate of …Read More

Sponsorship tax relief

Sponsorship Tax Relief

I’ll sponsor you! You may have thought of paying sponsorship money from your business to an individual perhaps or a club or competition. Can your business get tax relief on this payment? As ever, it’s not always a straight forward ‘yes’ or ‘no’ answer but more of a ‘it depends…’ To be allowable, the payment …Read More

The Budget 2015

Budget 2015

Highlights Income tax personal allowance to rise to £11,000 by 2017 Pension lifetime allowance to fall to £1m from April 2016 New Personal Savings Allowance from April 2016 New Help to Buy: ISA for first time buyers Rules on annuities to be relaxed from April 2016 Digital tax accounts to replace annual tax returns Budget 2015 Summary …Read More

Class 2 NI

Class 2 NI – Making it Easier to Pay

National Insurance for the Self-Employed – making it easier to pay At the moment, if you are self-employed, you will pay income tax and Class 4 National Insurance (NI) on your profits. These amounts are calculated when you prepare your Self-Assessment Tax Return and are payable on 31 January following the end of the tax …Read More