Company directors – how much are you paying yourselves next year?
If you are a company director and are paying yourself a low salary and the balance in dividends as funds allow read on. You are probably paying yourself £475 per month read more
Will I pay more or less tax next year?
While everyone will have heard about the increases in NI coming up, there have been other changes which may mean you pay less tax and NI next year. read more
June Budget 2010 Highlights for individuals and SME Business Owners
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
Twitter Tax Advice week 2010-05-17
- RT @chapperscounts: HMRC have a new Agent Dedicated Line (ADL): 0845 366 7855 for SA and Employee PAYE queries. Live already apparently. #
- RT @ir35advice: Self-employed IT analyst wins ‘borderline’ IR35 appeal http://bit.ly/99caXx //Balance was “in favour of self employment” # read more
March Budget 2010
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
Get advice and plan early for the most tax opportunities
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
Twitter Tax Advice week 2010-03-08
- RT @DarrenTMH: BBC News – How men in grey suits changed the world http://bit.ly/cx7C3i – #accountants #
- RT @gedrobinson: I hate myself for liking it as it is so unethical and planet destroying but I can’t wait for the #F1 season. – Agreed #
- Just received mailshot for OWG Networking breakfast 16 March, event also in Linked #In http://bit.ly/c56eGD-please join us + RT #
- RT @TaxationWeb: Tax year end tips: LITRG offers some tips to consider before the tax year end on 5 April http://bit.ly/c4K363 #
- How accountants shaped the modern world, a brief history of double entry on BBC R4 http://ow.ly/1e9Ra #
- Latest post on why you should have an accountant and how to choose one http://bit.ly/bM0fJr # read more
How should I set up sole trader or company?
So you are thinking about setting up your own company or wondering whether you are trading through the best sort of company. There are basically three types of company you can trade through and they all have their pro’s and cons.
Sole trader
This is the simplest way to work for yourself and there has been much discussion in recent months about people reverting back to sole trader status, or setting up as a sole trader in preference due to increasing company tax rates of which more later. read more
Pre Budget Report 9 December 2009
The Chancellor Alistair Darling has just delivered his last pre budget report before the election. His forecasts from the Budget still stand, the deficit will increase by a small amount to £178bn from forecast and he is still forecasting growth of 1.5% for next year and 3.5% for the following 2 years. He wants to reduce the deficit by 50% in 5 years, but how will all of this affect you?
For businesses
- Small company corporation tax held at 21% for another year read more