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 [...]
Autumn Budget 2017 today was pretty uneventful. The main news was that Stamp duty for 1st time buyers would be abolished with immediate effect for the first £300,000 of any property. The tax free personal allowance will increase to £11,850 from April 2018, with the 40% tax bracket increasing to £46,350. The Living wage will also increase from £7.50 to £8.83 in April 2018.
CIS gross status – If you are currently being deducted 20% CIS tax by your contractors, but your annual turnover after materials is above £30,000 and you are up to date tax wise, we can apply for you to be paid gross. This way you will pay tax at the end of the year and improve your cash flow during the year. Ask PMC Partnership if you wish to apply for gross status.
Childcare vouchers. If you are a working parent, requiring childcare, you may claim up to £55 per week in childcare vouchers. The money is taken off your GROSS salary and paid by your employer to the childcare provider, this way saving both you and your employer tax and National Insurance. Please check if you should be claiming by visiting www.gov.uk/childcare-voucher-better-off-calculator
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