New Data regulation rules (GDPR) regulating how personal data is held by companies comes into affect from today. This is a positive step for personal security. Please note that PMC Partnership will only ever hold and use our clients personal data to administer and manage our relationship with our clients. Data will never be disclosed to a third party without express permission and data will not be held for longer than necessary. All data is sent by our secure [...]
Employee tax relief – remember that if either you or your employees pay for business expenses personally and are not reimbursed, they can claim personal tax relief. The allowable expenses are varied from travel costs to protective clothing. You either claim through your personal tax return or if you are not in self assessment via the HMRC website at www.hmrc.gov.uk
From April 2018 the National Minimum Wage and National Living Wage is increasing to £7.83 for those above 25, £7.38 for 21-24 year olds, £5.90 18-20 year olds, £4.20 for below 18 and £3.70 for apprentices. Remember it is the employers responsibility to pay all employees at least these rates of pay.
From April 2018 your main tax allowance is increasing to £11,850, you can then earn another £34,500 at the basic rate (20%) before entering the upper rate of tax (40%). The tax free dividend allowance is reducing from £5,000 to £2,000 per year, again hitting all those taking dividends from their own Limited companies. The tax free savings allowance remains at £1000 for basic rate tax payers and £500 for upper rate tax payers, with the Corporation tax rate [...]
Tax free Childcare replaces the current childcare vouchers from April 2018. Anyone using the current scheme will continue to do so but the scheme will close for new applicants. Now people will have to apply for tax free childcare at www.hmrc.gov.uk and if successful the government will add 20p to every 80p spent on childcare to a maximum of £500 per quarter (£2,500 maximum quarterly spend). Remember you will have to reapply every quarter to continue to receive the [...]
Workplace pension minimum contributions are increasing from 6th April 2018. Employers contributions are going to 2% and Employees 3%, which PMC will increase automatically for you. The Pensions regulator are now fining companies for non compliance, so please ensure, if required, that your pension is up and running and being filed each month.
March 2018 and another tax year end approaches. Here are few reminders to help you maximise your tax breaks before the 5th April year end : Ensure you have filed your 2017 tax return and paid any tax due to minimise penalties and interest Use your £5,000 tax free dividend allowance before 05/04/18 – this renews each year and is lowering to £2,000 from the next tax year Use your £11,300 Capital Gains tax allowance, this is not transferable to the next [...]
Tax return deadlines and penalties. Remember HMRC will fine you £100 if your personal tax return is not submitted by 31st January 2018. If your tax return is then three months late, HMRC will fine you £10 per day up to £900. Also if your tax is unpaid by the 1st March, HMRC will fine you 5% of any tax due, if unpaid by 1st August another 5% and if still unpaid next February another 5% ! As you can see [...]
Even though you maybe in Bexley, if you are trading abroad there maybe VAT implications. As a rule of thumb if a service is exported abroad it is usually outside the scope of VAT and thus VAT is not charged and you should just complete an EC sales list form with your VAT return. If your are exporting goods abroad then again there is no VAT and they are zero rated. There are exceptions to these rules though and [...]