23.03.2011
Tax Advice
With most of the major changes already released or leaked pre-budget there were not the usual number of new announcements to make. The Chancellor started by running through the main economic statistics:
- Growth is slower than expected but only by a small amount but the future forecasted increases are still expected
- Inflation will hold at around 4-5% this year but then fall to 2.5% next year then the Bank of England target of 2% in the following year
The starting point for the areas which will affect us all was the statement that UK taxes are too complicated and 42 taxes and reliefs are being abolished and there is going to be a consultation on merging the Income Tax and National Insurance which will reduce bureaucracy for employers and HMRC in administration. Then onto the actual details:
- Main corporation tax rate will reduce by 2% from April then 1% per annum read more
14.12.2010
Tax Advice
As we move into party season there are a number of issues which are pitfalls in planning the Christmas party. Some of the facts follow:
- You may claim £150 including VAT per person per annum
- This may cover more than one event read more
18.10.2010
Tax Advice
Associated Company rules
Small companies benefit from paying a lower rate of corporation tax on profits upto £300k so there is a danger that a wily director could set up a number of companies under his control to make the maximum benefit from this tax band. For this reason the associated company rules were introduced to block this loophole read more
22.06.2010
Tax Advice
We have been complimented on the updates posted on Twitter live during the Budget and hope to continue this by summarising the main points of interest to small business owners and individuals in the street.
The Chancellor George Osborne started by painting the picture of the poor state of the economy and among various political comments stated that due a cautious approach fiscal goals would be met one year earlier than expected in 2014. The inflation target will remain at 2% which has already been exceeded, this will peak at 2.7% later in the year and then reduce. In terms of the approach to the deficit a lower spending rather than higher tax route is being taken, read more
10.06.2010
Tax Advice
I was speaking to a client yesterday regarding the options of having a company car and coming from a carbon reduction background he was keen to have a low emission car and wanted to know the tax effect. This is an area where the government are encouraging growth using the taxation system as a carrot, to encourage lower emissions, the arguments regarding the costs and environmental impact of battery materials and technology we will leave to other forums. read more
21.04.2010
Business Advice
Clients are always telling me that they do not understand their accounts. Clearly they know their business, and how to price to make money so it is only a small step to actually understanding the end of year accounts:
- The very back page or two is the detailed profit and loss account which as the name implies shows the profitability of the business after expenses but before tax. The first figure will be sales or turnover which is the income for the year based on sales actually completed, but not necessarily paid for. read more
09.04.2010
Tax Advice
With the passing of the old tax year we are presented with returns to file and tax to pay. Some memorable dates are listed below, with a few more interesting ones too:
- 19 April – PAYE must be paid for the period up to 5 April (usually just the March payroll) – and monthly on 19th for each subsequent month read more
25.03.2010
Tax Advice
The key budget announcements follow, we can of course expect another post election budget when more significant changes may be made such as the much vaunted increase in VAT:
For business
- The Annual Investment Allowance (AIA) will be increased to £100k pa for expenditure incurred on or after 1 April 2010 (companies) and 6 April 2010 (unincorporated businesses).
- No changes have been made to the main and small companies’ rates of corporation tax which for 2010 remain at 28% and 21% respectively.
- A 100% first year allowance will be available for new zero-emission goods vehicles for a five year period from 1 April 2010 (companies) and 6 April 2010 (unincorporated businesses)..
- Business rates cut for one year from October meaning a tax reduction for more than 1/2 million small businesses in England and 345,000 will pay no business rates at all.
For individuals
- The lifetime allowance for entrepreneurs’ relief has been increased to £2m and may be claimed for disposals made on or after 6 April 2010. Capital gains tax rate remains at 18%. read more
12.03.2010
Tax Advice
I have just signed up a client who has a limited company which he set up over a year ago although he did not start trading until the current tax tax. From previous posts you will be aware that one of my recommendations for the biggest tax saving opportunities read more
