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 [...]
Budget 2017 The main points of the budget this week affecting the small business were : Class 4 National Insurance, a tax on the self employed profits, is rising from 9% to 10% in April 2018 and from 10% to 11% in April 2019. But the fixed class 2 contributions for the self employed is being scrapped from April 2018 The Personal tax allowance is rising to £11,500 from this April The tax free dividend allowance is falling from £5,000 to £2,000 from April 2018 Firms [...]
HMRC tax surcharge. Please remember to pay any self assessment tax due for 2015/16 by the 28th February 2017 or you will automatically receive a 5% surcharge penalty from HMRC which you cannot appeal against ! Please pay HMRC either by telephone or via their website remembering always to use your UTR as a reference.
Free Accounts advice. Please remember that when you receive your Accounts we always ask you to make an appointment at the office to discuss the Accounts. This is the opportunity to confirm the figures are correct and try to minimise your tax bill. Please don’t forget to use this free service – keep in touch with your Accountant ! That’s how we can help you best !
Workplace Pensions. 2017 is the year when every person employing a member of staff MUST start a workplace pension scheme, it is the LAW. You can find the date you must start by going to www.thepensionsregulator.gov.uk/staging-date.aspx You can start the scheme yourself or use a Financial Advisor. PMC can then administer the scheme, but please check that your chosen provider is compatible with our software. Please also note there is a separate charge for this new service as we are being charged by [...]
Self Assessment tax return deadline for your 2016 personal tax return is fast approaching at the 31st January 2017. Please ensure that PMC have received all your relevant information and filed your tax return prior to this deadline or you will receive a £100 penalty, rising to a possible £1200 penalty. Please also ensure payment is made on time or you will receive a 5% penalty based on tax due.