If you are married, remember to use your Married Tax Allowance (MTA) ! If your spouse is not using all their annual tax allowance and you are a basic rate tax payer (not higher rate) then you can transfer up to £1150 of their allowance to you, saving £230 in tax every year. If this applies to you then apply at www.hmrc.gov.uk/apply-marriage-allowance . If successful then inform PMC and we will happily apply this credit to your tax return.
Workplace pensions 2018 – remember that from April 2018 the minimum contributions to your workplace pension increases from 1% to 2%. Check your staging date at the pensions regulator website if you have not already done so, it is against the law not to have a scheme in place if you are an employer. Contact PMC Partnership for further advice.
The Personal Savings Allowance (PSA) was introduced in April 2016 to enable all basic rate tax payers to receive the first £1,000 of savings interest tax free (£500 for higher rate tax payers). Thus if you are just noticing that your savings is gross of tax at your bank rather than net, this is the reason !
Remember that you are entiltled to Capital Allowance Relief or AIA, which allows a business to write off the cost of Capital Assets against their taxable profits and reduce your tax liability. The AIA allows up to 200,000 to be reclaimed, but make sure PMC is aware so we can reduce any tax liability for you
Workplace Pensions. Please remember it is now the law to offer all your employees a workplace pension. You can check the date your company has to comply by, simply by going to the pension regulators website, then get in touch with PMC Partnership to help you set the pension up accurately and swiftly.
Accountants in Bexley, PMC Partnership, asks which is best in 2017 tax wise, being self employed or being Limited ? Since the 2017 Dividend changes clients are asking if it is better to be a sole trader now ? Take this example if you are earning £30,000 in 2017. Being self employed your tax bill will be £3800 and National Insurance £2120, making a combined liability of £5920 or approximately 20% of income. If you are Limited you would be paid [...]
From April 2017 the way you can claim interest on your Buy To Let property changes. From this point you can only claim 75% of the amount for tax relief, lowering to 50% the following year, 25% the year after until finally 0%, when it will be replaced with a 20% tax credit. Obviously this will result in higher tax bills for everyone. One way around this is to put the property into a Limited company, however please be [...]
Remember that from tax year 2016/17, the personal tax returns being completed now, the way dividends are treated changes. Now the first £5,000 of dividends are tax free, then they are taxed at 7.5% if you are a basic rate tax payer and 32.5% if you are a higher rate tax payer.
Firstly if your turnover is above £83,000 for any 12 month period you must be VAT registered. However, anyone can register for VAT and it can be an advantage for you. If your customers are mainly VAT registered businesses and you can add VAT to your price without changing their buying price (as they reclaim the VAT) then your VAT reclaim on purchases can be a financial advantage to you. However, if most of your clients are private individuals and are [...]