The government have introduced changes to the way that Capital Gains Tax for residential properties is reported and paid with effect from 6th April 2020. These changes mean that when you sell a residential property in the UK that results in a Capital Gains Tax liability you will have 30 days from completion of the…Read More
A PAYE Settlement Agreement (PSA) allows you, as an employer, to make an annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for your employees. Class 1B national insurance is due on PSA’s which means that the expense or benefit does not need to be…Read More
Small-business owner-managers Do you want to know how to draw £50,000 from your company and pay just £2,663 in tax and NI whilst saving £1,726 in corporate tax? Or even better, do you want to know how to draw £50,000 from your company and pay just £3,023 in tax and NI whilst saving £2,375 in…Read More
Who can get the Self-Employed grant? Sole traders or partners in a trading partnership, but not director/owners of limited company businesses. What will you get? A taxable grant representing up to 80% of your average profits if you meet the following criteria: you submitted your tax return for 2018/19 ( year ended 5th April 2019…Read More
On Thursday evening, Chancellor Rishi Sunak unveiled the eagerly awaited government aid plans for the self-employed in the UK. The scheme looks to mirror the current support offered to the employed by offering an 80% guarantee on income up to £2,500 per month (dependant on conditions). How much will I get? Much like the scheme…Read More
With the vast majority of the country practising ‘social isolation’ during the outbreak of the Coronavirus, we are seeing that more money is remaining in pockets and out of the cash flow of small businesses. We look at some of the solutions available to help businesses protect themselves through this potentially difficult time financially. Government…Read More
It was announced that there would be an increase to the tapered annual allowance for pensions. There will be a £90,000 increase to ‘threshold income’ – increasing it from £110,000 to £200,000. Broadly speaking threshold income is your net income less your gross personal pension contributions. This means that individuals with a threshold income of…Read More
The day of the red briefcase, budget day is just around the corner. Set to be unveiled on 11th March, provided the reshuffle doesn’t delay proceedings, here is a look ahead at what we might be able to expect: Entrepreneur’s relief (Bad news for successful business owners) With the Tories promising to review Entrepreneur’s relief,…Read More
Ever wondered why the tax year starts on the 6th of April and ends on the 5th of April the following year? Most logical thinkers would question as to why the tax year doesn’t coincide with the calendar year than runs to the 31st of December. In order to get to the bottom of this,…Read More
The annual allowance is a limit on the amount that can be contributed to your pension each year, while still receiving tax relief. The annual allowance is used up through gross pension contributions from you or your employer. The amount will depend on your earnings; the rule is that you’ll get tax relief on pension contributions of up to…Read More
‘Dependent relative’ is defined as any relative who is unable to look after himself or herself. Dependent relative relief only applies on a property used by the relative before 5 April 1988, providing that this was the main residence of the relative. Should there have been a change of occupant after 5 April 1988 the…Read More
With the introduction of the Personal Savings Allowance in April 2016, many people stopped seeing the point in keeping their savings in Cash ISA’s, as after all, they won’t be taxed right? True in many cases, but that doesn’t mean that they can’t benefit you. If you don’t know, the Personal Savings Allowance means that…Read More
When starting a business, whether as a sole trader, a company or in partnership, there is inevitably a preparatory period before trading commences during which expenditure is incurred in setting up the business. Depending on the nature of the business, the set-up period can be long and complex and the expenditure incurred during this phase…Read More
Higgins vs HMRC The court of appeal has declared that for a homeowner, the period of ownership begins at the date of completion. In the recent case of Higgins vs HMRC, Higgins had entered into a contract for a 125-year lease for an apartment on 2nd October 2006, which was due to be built within…Read More
Has COVID-19 ruined the spirit of Christmas? With Christmas fast approaching, typically by now most employers and employees would be looking forward to their company Christmas party. However, this year has been like no other and Covid-19 restrictions have firmly put a stop to the annual office party. As such, many employers will be considering…Read More
Never call an accountant a credit to his profession; a good accountant is a debit to his profession.
Charles Lyell
