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.
Following the recent announcements from HM Revenue and Customs, I am pleased to put forward our recommendations for tax-efficient wages and dividends for the year beginning 5th April, 2013.
If you are the owner of a limited company, the most tax-efficient remuneration package is an annual salary of £7,692 and dividends of £30,382 (profits allowing). This assumes you have no other income. At this level, you will have no income tax to pay. The limited company will have been taxed on the dividend income. Dividends in excess of this amount will be taxed as 25%.
There are some formalities about dividend vouchers and board minutes which we would be happy to advise on.
You may recall that last year we advised a salary of £7,600 and dividends of £30,933 – £459 more than we advising for this year. This is because the higher-rate income tax threshold has been reduced to take account of the increase in annual personal allowance from £8,105 to £9,440. National insurance thresholds have not benefited from the same increases as income tax thresholds. Annual wages between £7,692 and £9,440 will be subject to a combined national insurance charge of 25.8%, more than offsetting the Corporation Tax relief.
By substituting £1,748 of dividends for rents charged for a use of home office, an overall annual tax saving of £350 can be achieved. Please contact for more details if this suits your situation.
We have developed a number of useful guides on various practical and theoretical issues which may affect your business.
A full list can be accessed by clicking on the link below. You can then select and request the guides you are interested in.
Index to our tax and business helpsheets
We hope you find this useful.
There are only 14 more days until the end of the 2012 tax year. There is still time to save some tax. The tax planning fact sheet below will give you some ideas.
Year end tax planner – 5th April, 2012
I would also like to remind you that sole traders and partnerships should buy capital equipment before 5th April, 2012 to obtain tax relief in 2011/12 tax year. Similarly, limited companies with a 31st March, 2012 year end will need to buy these assets before 31st March, 2012 in order to claim tax relief in the current year.
There are major changes to capital allowances in 2012/13. The Annual Investment Allowance is reducing from £100,000 p.a. to £25,000 p.a. There is also a nasty tax complication which may affect businesses with a non-March year-end. Please contact us if you plan to make significant asset purchases after 31st March so that we can advise you.
Please click on the link below to access our really comprehensive review of the Chancellor’s announcements yesterday.
There is lots of detail to follow and we will, of course research it all and identify any potential effects. Aside from the headline grabbers, it is disappointing to note the continued aggressive taxation of motor vehicles. If you have company vehicles, you need to consider some further tax planning.
The Shrewsbury Accountant’s review of March, 2012 budget
As always, if you need further advice, please do not hesitate to contact us.
Many clients have found our business records checklist useful when assembling their paperwork. There is a link to the file below (pdf)
When you combine this with our purpose design record keeping wallets, you are really helping yourself save money by saving us time.
VAT on commercial property is a complex area. Much confusion comes from the Opting to Tax regulations. These regulations were introduced on August 1, 1989, and include a critical landmark being the 20th anniversary of the date that any option to tax was taken, after which it is possible to revoke the option.
It seems almost impossible, but is true, that the 20-year period will now have expired for properties owned back in the late eighties and the incidence of expiry of the 20-year period will become more frequent in the next few years. As a result the number of opportunities to consider whether it might be beneficial to revoke the option with HMRC will increase.
If you own commercial property that is currently opted and want further advice, please do not hesitate to contact us.
We have a brilliant free app which keeps a track of your business journeys and works out the tax-free amount to reclaim (based on HMRC approved mileage rates) and makes sure you claim the correct amount of VAT on the fuel.
It is available by clicking the link below