Category Archives: News

An Accounting Revolution While everyone was celebrating the New Year in January a new piece of seemingly obscure banking legislation came into place in the UK which has the power to revolutionise the way that small businesses integrate technology with their banks. Previously if a third party application like a piece of book keeping software […]

HMRC’s Making Tax Digital initiative is edging ever closer. So with just over a year to go until it comes in here is a review of where we are. The latest update to the schedule from HMRC was in July 2017: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital This delayed the roll out somewhat however the first phase is still imminent. Whilst […]

Here are the highlights from a fairly content free budget. The main budget is moving to the Autumn from this year.   TAX FREE DIVIDEND ALLOWANCE TO BE REDUCED TO £2,000 The Chancellor also announced measures to limit the rise in tax-driven incorporation. The £5,000 tax free dividend allowance introduced by George Osborne will be […]

The new flat rate State Pension which started last year https://www.gov.uk/new-state-pension/eligibility requires 35 years of National Insurance contributions to receive the whole amount which is currently £155.65 a week. This may not sound a lot but at current annuity rates you would need a private pension pot of more than £200,000 to receive the same amount. […]

CHRISTMAS IS COMING! – NEW RULES FOR GIFTS TO STAFF From 6 April 2016 new rules were introduced to allow employers to provide their directors and employees with certain “trivial” benefits in kind, tax-free. The new rules are a simplification measure so that certain benefits in kind will not need to be reported to HMRC, […]

  LIQUIDATING A COMPANY – IS IT A CAPITAL GAIN? One of the anti-avoidance measures being introduced by the latest Finance Bill potentially changes the way that certain payments to shareholders will be taxed. This may result in payments following some company liquidations being taxed as dividends instead of capital gains. The Government is concerned […]

With the advent of Auto Entrolment pensions all Employers are going to become more familiar with the ins and outs of pension tax relief! Unfortunately just to complicate a complicated system even more there are two fundamental ways that the Employee contributions can be calculated. If a worker has agreed to the minimum contribution which […]

Many of the cloud book keeping services allow you to automatically import bank transactions in to the software. This has the advantage of ensuring the bank always reconciles, reduces data entry and saves time as the better software learns what the repeat transactions are and will code them automatically. Paypal transactions can also be imported […]

Last year’s Autumn statement contained an announcement which on the face of it wasn’t that exciting but will have a profound impact on our clients. HMRC has had online services for Businesses and Individuals for many years. These are now being migrated into HMRC’s new “Digital Tax Accounts” which will give greater information about the […]

Two weeks to the end of the 15/16 tax year. Still time to do some last minute tax planning…………………. Personal Pension Payments: If you are a 40% tax payer, and have received PAYE income during the year, a payment into a personal pension from taxed income will get you 40% tax relief. The pension company […]

Autoenrolment, the word that strikes fear into small business owners across the land. And 2016 is the year that it is going to happen for a huge amount of small businesses in the UK. According to this document http://www.thepensionsregulator.gov.uk/docs/automatic-enrolment-employer-staging-forecast.pdf from a base level of a few thousand businesses staging a quarter last year there are […]

With the deadline for submitting 2014/15 self assessment returns looming this Friday it seems topical to review the penalties around self assessment. There are penalties for: Not informing HMRC that a self assessment return is necessary (failure to notify) Late submission of a return Late payment of tax The penalties for failure to notify depend […]

The new dividend tax was announced out of the blue in the budget. The key facts of the proposed changes are as follows:          From April 2016, the notional 10% tax credit on dividends will be abolished.          A £5,000 tax free dividend allowance will be introduced.          Dividends above this level will be taxed […]

A recurring theme from clients is that they don’t want to pay any tax. Unfortunately for most people this is not an option if they have a business is making money. Even Starbucks and Amazon pay some tax, though they tend to choose in which country they pay it, and are big enough to make […]

We speak to a lot of small business owners and the suggestion of pension contributions is often derided. However recent changes to the tax treatment of private pension contributions make pension contributions an essential tool in the armoury of getting money out of a small business. In the past the perception was that pension contributions […]