National Insurance Contributions

Voluntary National Insurance Contributions – should you pay? The payment of National Insurance Contributions provides the mechanism by which an individual builds up their entitlement to the state pension and certain contributory benefits. Different classes of contribution provide … [Read more...]

The National Minimum Wage

Are you paying the national minimum wage? The National Living Wage (NLW) and National Minimum Wage (NMW) increased from 1 April 2019. From that date, the NLW, payable to workers aged 25 and over, is set at £8.21 per hour. Workers under the age of 25 and over school leaving age … [Read more...]

Expenses and Benefits for 2018/19

Reporting expenses and benefits for 2018/19 Where employees were provided with taxable benefits and expenses in 2018/19, these must be notified to HMRC. The reporting requirements depend on whether the benefits were payrolled or not. Benefits not payrolled Taxable benefits that … [Read more...]

Optimal Salary for 2019/20

Family companies – optimal salary for 2019/20 For personal and family companies it can be beneficial to extract some profits in the form of a salary. Where the individual does not have the 35 qualifying years necessary to qualify for the full single-tier state pension, paying a … [Read more...]

Tax Free Savings Income of £18,500

Tax Free Savings Income Where income is mainly derived from savings, it is possible to enjoy savings income of up to £18,500 tax free in 2019/20 in addition to that held in tax free wrappers, such as individual savings accounts (ISAs). The ability to enjoy savings income tax free … [Read more...]

Make Sure You Know How to Reduce Your Payments on Account

Payments on Account Under the self-assessment system, a taxpayer is required to make payments on account (advance payments towards the eventual tax and National Insurance liability) where the previous year’s self-assessment bill was £1,000 or more, unless more than 80% of the tax … [Read more...]

Save Tax by Using the Small Pools Allowance

Capital Allowances Businesses which are not using the cash basis can claim capital allowances for capital items that are used in the business, such as plant and machinery, tools and equipment, and so on. Where the annual investment allowance, which gives an immediate 100% … [Read more...]

Making Tax Digital for VAT

Making Tax Digital for VAT Making Tax Digital (MTD) for VAT went live on 1 April 2019. VAT registered businesses with turnover above the VAT registration threshold of £85,000 are required to comply with the requirements of MTD for VAT from the start of their first VAT accounting … [Read more...]

Using the Cash Basis

Using the cash basis – is it right for your business? The cash basis is a simpler way of working out taxable profits compared to the traditional accruals method. The cash basis takes account only of money in and money out – income is recognised when received and expenses are … [Read more...]

Tax Planning Tips

As the 5 April 2019 tax year end approaches, here are some last minute tax planning tips that may save you money. Pension Contributions Tax relieved pension contributions can be made up to 100% of earnings, capped at the level of the annual allowance. The annual allowance is set … [Read more...]