Most* TaxAssist Accountants’ clients in Shrewsbury have the assurance of knowing that if HMRC launch an investigation into their tax affairs, we will deal with HMRC on their behalf and that we will not charge them for our time. We promote this as TaxProtect and it is currently provided by Taxwise.
The article below is written by Taxwise and gives a very good explanation.
If you have any questions please contact us rather than the telephone number on the document.
TaxWise article on HMRC Investigations
*Subject to paying a minimum annual accountancy fee.
We are pleased to give some more information about the radical changes to pensions and ISAs announced on Wednesday.
You can download the file from here
Please remember that we are able to support you with an auto-enrollment pension solution. If you would like to know more, please contact us.
We have summarised the key issues of yesterday’s budget in our newsletter which can be accessed from this link
If you are on our newletter mailing list, you will have already received this. If not, you can subscribe to our mailing list and view past articles from this webpage version of the newsletter.
The introduction of the £2,000 employment allowance for the 2014/15 tax year, brings some added complications and opportunities regarding the amount that the Boards of Limited Companies approve as Directors’ salaries.
To re-cap – for the year from 6th April, 2014, most employers will be able to reduce their Employers National Insurance Contributions (NIC) (levied at 13.8% on monthly pay over £663) by a maximum of £2,000 for the year.
There are 2 options.
1/ If the company has other employees and is able to use all the £2,000 Employment Allowance in the year against employer NICs for them , then the best route is for the Company to pay the Director £663 per month. The Company votes dividends to the shareholder/directors to top up their earnings from the company. Care should be taken to avoid any higher-rate tax on the dividend. We can advise you based on your individual circumstances.
2/ If the company has NO other employees, then it may be best to pay the Director £833 per month . This uses all of the Director’s 2014/15 personal allowance to reduce company profits (saving a further £408 Corporation Tax). The Director pays £245 Employee’s NIC so there is a net benefit of £163. The Company votes dividends to the shareholder/directors to top up their earnings from the company. Care should be taken to avoid any higher-rate tax on the dividend. We can advise you based on your individual circumstances.
If you are interested in option 2, we strongly suggest you contact us as there are some pitfalls that need to be avoided.
In both the above cases, please consider the flexibility offered by a rent agreement between the company and Director for use of home for business purposes (please see my earlier article).
Please note that Directors under IR35 will not be able to claim the Employment Allowance against their deemed salary, but if they actually pay themselves through the payroll under RTI they can.
Thinking about raising finance
I have recently found out about a new government scheme called Growth Accelerator which aims to help businesses get the funds they need to grow.
Growth Accelerator provide professional independent support to businesses to find potential investors or lenders and help them secure the funds.
The service is provided by a leading financial advisory firm but it is made very affordable because the costs are subsidised by the Department for Business Innovation and Skills (BIS). The link below will give you more details about the scheme.
Access To Finance
We can help with management accounts and financial forecasts.
A summary of the Autumn Statement can be found by clicking on the link below
TaxAssist Accountants – Autumn Statement summary
New and established businesses can benefit greatly from using an on-line (cloud based) accounting packages.
In our experience, choosing to work on-line rather than installing software on a local PC gives the following major benefits:
- Reduced cost –No need to purchase hardware or accounting software. And unlike the conventional accounting software, it requires absolutely no updates.
- Ease of access – All you need is an Internet connection!
- Security – Your data is safe online. No need to worry about PC failures, theft or fires.
- Improves Business Performance – Keep on top of money owed to you, work with your accountant on current data.
Please have a look at our software brochure and 24 page guide by clicking the links below:
Online accounting brochure
TaxAssist Accountants Online Bookkeeping Guide
We can give you a free 60 day trial. Thereafter the software costs just 50p per day (plus VAT).
Please contact us for more details. No more worrying about that old PC running unsupported software!
Luxembourg recently announced plans to raise its VAT rate from 15% (currently the lowest in the European Union). Whilst it is not yet clear what the new VAT rate will be, a rise of 1% to 16% is widely forecast.
The new rate will take effect from 1st January, 2015.
On-line retailers, who are not registered for VAT, have to absorb the cost of Luxembourg VAT on Ebay and Amazon fees. This is a small but unwelcome addition to costs that needs to be planned for.
I am grateful to Bob Edwards of Landmark Professional Development for producing this clear guide on when you are required to complete a personal tax return.
Please click on the link below to access it:
Filing check list
If you need further guidance, please do not hesitate to contact us
Please find below a link to our Budget Summary covering the key points of George Osborne’s fourth Budget that affect small business owners and taxpayers.
TaxAssist Accountants budget_summary_2013_21 March 2013
Some of the changes were mentioned in last December’s Autumn Statement and earlier Budgets, but there were also many new announcements. The main highlights of the Chancellor’s speech were:
- From April 2014, all businesses and charities will be entitled to an Employment Allowance of £2,000 per year towards their employer National Insurance contributions (NICs) bill. This will particularly help small businesses who want to hire their first employee or expand their workforce
- An increase in fuel duty of 1.89 pence per litre, originally planned for 1st September 2013, will be cancelled. This is great news for trades people and service providers who make home visits and are dependent on their vehicles
- The Government had already pledged to increase the personal allowance to £10,000 by 2015/16, but today announced that this would be brought-forward a year and will now increase to £10,000 in 2014/15
We hope that this summary is easy to digest and proves useful.
A further article with reaction from Jo Nockells of our technical team is on our web-site here
If any of the areas discussed seem likely to have an impact on your personal or commercial plans, please do not hesitate to contact us.