Keep checking your emails for all updates regarding the corona virus and business and tax advice. Including the PAYE and self employed job retention schemes, government grants, government backed bank loans and the fact that VAT and personal tax is deferred.
The biggest points to affect a small business in yesterdays budget were : A Tax cut for 31 million people by increasing the National Insurance threshold from £8,632 to £9,500 Emergency base rate interest rates cut from 0.75% to 0.25% Business rates for small firms in leisure and retail with a rateable value of less than £51,000 will be scrapped Statutory Sick Pay (SSP) will be available to all employees advised to self isolate due to the Corona virus. Employers with less than [...]
From 6th April 2020 the way you declare your Capital Gain Tax (CGT) to HMRC when selling a second property changes. Instead of just including the sale in your end of year personal tax return you must also now personally declare the gain online at www.hmrc.gov.uk and pay the tax due within 30 days of the sale. There is an online calculator to help you pay the correct tax. The sale must also still be included on your end of [...]
If you are an employer and employee staff over 22 years old or earning over £10,000 you must offer them a company pension scheme, even if they wish to opt out. If you do not set up a pension scheme the regulator may fine you up to £5,000 per company. Please note that this is the responsibility to set up, enrol and reenrol, of the director not the accountant.
If your husband or wife does not use their £12,500 tax allowance then they may transfer £1250 of their allowance to their basic rate paying partner, reducing their tax bill by up to £250. If you wish to apply then the person with the lower income should go to www.hmrc.gov.uk/marriage-allowance/how-to-apply. This may also be backdated to 2015.
Many clients are set up to pay the minimum tax and National Insurance, by paying a low wage and a monthly dividend. Whilst this is the most tax efficient way to pay yourself, if this is continued for many years there is a possibility you will under pay National Insurance and possibly not receive a full pension. If this is the case you can voluntarily top up your National Insurance contributions. Please check your NI contributions are ok by [...]
From April 2020 HMRC are changing the way rule IR35 is viewed, which determines if you are an employee or sub contractor. The responsibility is going to now be down to the contractor or employer to decide the correct decision. Obviously, tax wise, it is better for someone to be a sub contractor, but the rules are tightening. After discussions with HMRC and governing accounting bodies, it seems that the all important criteria is if an individual has the [...]
Normally if you sell your business the proceeds are split between Sale of Assets and Goodwill. The Profit or Loss on the sale of the assets will depend upon the sale and the value in your accounts, but the remaining money received will be for Goodwill and you will have to personally declare this for Capital Gains Tax (CGT). CGT is at 10% for basic rate tax payers and 20% for upper rate tax payers, although you may qualify [...]
Tax free childcare replaced the old voucher system in October 2018. Now if you have children under 12, you apply direct to HMRC rather than through your employer, to receive for free up to 20 % of your childcare costs up to £2,000. To check your entitlement please visit www.tax-service.gov.uk/childcare-calc.
If you have a student loan you must inform your employer or your Accountants if you are self employed or a director of your own company. If you earn over £364 per week on plan 1 (loan taken before 2012) or £494 per week on plan 2 (loan taken 2012 onwards) then you must pay 9% of your income above this threshold towards your loan repayments. The student loan is written off when you either reach age 60 or [...]