Tag: business finance

  • Efficient Tax Savings

    As the end of the current tax year approaches, it is worthwhile making a check to ensure that the various tax-efficient saving opportunities have been utilised wherever possible. The following paragraphs highlight some of the areas where savings may be made. ISAs The maximum annual investment limit for Individual Savings Accounts (SAs) will remain at £20,000 for…

  • Making Tax Digital – Be Ready

    The April deadline for Making Tax Digital is rapidly approaching so we all need to be prepared, which includes using a software programme compatible with HMRC. Making Tax Digital will help bring the tax system into the 21st century by providing businesses with a modern, streamlined system to keep their tax records and provide information…

  • Making Tax Digital: MTD for VAT

    From April 2019 all VAT registered businesses with a taxable turnover above the VAT threshold of £85,000 will be required to: Maintain their accounting records digitally in a software package or on a spreadsheet. Paper records will no longer meet the legal requirements in tax legislation. Submit their VAT returns to HMRC using MTD compatible…

  • Apprenticeship Levy Help for Smaller Firms

    In a bid to make apprenticeship schemes more accessible, the Treasury has raised the amount of the apprentice levy that larger companies can transfer to smaller firms in their supply chain from 10% to 25%. The change, which was announced by Chancellor Phillip Hammond at the Conservative Party conference, aims to provide additional flexibility for…

  • The End of Austerity – Autumn Budget 2018

    Continuing our commitment to keep you informed about government decisions which influence your finances, here is our summary of the Budget announced on 29 October. The Prime Minister has announced the end of austerity but Chancellor Philip Hammond wants to keep a tight rein on the country’s finances, especially with the unknown consequences of Brexit.…

  • Employees with Electric or Hybrid Cars?

    Legislation is to be introduced to exempt from income tax and National Insurance Contributions, any liability arising from the provision of charging facilities (including electricity) to employees recharging all-electric or plug-in hybrid vehicles at or near the workplace, where facilities are made available generally to the employer’s employees. It does not cover reimbursements for charging…

  • Class 2 NICs To Remain

    Self-employed earners (i.e. sole traders or partners) over the age of 16 and below state retirement age are currently liable to both Class 2 and Class 4 National Insurance contributions (NICs) unless specifically excepted by provisions contained in the Social Security Contributions and Benefits Act 1992. Former Chancellor, George Osborne, made proposals to abolish Class…

  • Self-assessments: new points-based penalty system to be introduced by HM Revenue & Customs?

    It looks like HM Revenue & Customs may be introducing some changes to late filing penalties based on proposals put forward for the Finance Bill 2018-19. As the rules currently stand, an automatic £100 penalty is issued for failure to submit a self-assessment tax return on time. These penalties can increase significantly depending on how…

  • Rent-a-Room Relief for Absent Landlords

    If you are thinking of working away from home for a while and taking in a lodger to look after the house and pay you some rent, HMRC says you can receive up to £7,500 per year tax free. However, this tax relief is only available if the letting income is from the only or…

  • Unpaid Invoices and Tax Deductions

    You may have bad debts for your latest accounts which you have ignored. Can you claim tax relief on these? You accountant can prepare your tax returns and company accounts to the best of their knowledge according to the information you provide, but may not be aware of your bad debts. These need to be…

  • Making Company Car Purchases Cost Effective for Family Members

    In April 2018 the tax and National Insurance (NI) charges for company cars rose again. The maximum charge did not increase but the carbon dioxide (CO2) emissions bands moved so that the majority of company car drivers will pay more in 2018/19 and in 2017.18 for the same car. However, if you use your business…

  • VAT Margin Scheme

    If your company buys and sells second-hand goods you may be eligible to use a VAT Margin Scheme. A VAT Margin Scheme taxes the difference between what you paid for an item and what you sold the same item for. VAT is paid at 1/6 (16.67%) of the difference (margin). Business overheads, repairs and parts/accessories…