The Chancellor delivered her Budget highlighting intentions to review public spending, freeze thresholds, remove and reform certain allowances and to highlight future tax increases. It was a Budget that added more complexity into an already complex tax system. As with previous … [Read more...]
A Guide to the Spring Budget 2024
Key measures announced by the Chancellor in the Spring Budget 2024 are summarised below: Income tax rates: England, Wales & Northern Ireland (non-dividend income) 2024/25 2023/24 0% starting rate for savings only Up to £5,000 Up to £5,000 0% on … [Read more...]
A Guide to Budget 2021
Budget 2021 - Tax Rates & Allowances 2021/22 2020/2021 £ £ Income tax rates (non-dividend income) 0% lower rate tax – savings rate only Up to 5,000 Up to 5,000 20% basic rate tax 12,571 to 50,270 12,501 to 50,000 40% higher rate … [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...]
Tax Free Earnings
Below is a list of tax free allowances that mean you can earn money without paying tax or even declaring it to the taxman. Trading Allowance You can earn income of £1,000 tax free, without even having to declare it to the taxman. If you earn more than £1,000, the allowance … [Read more...]
Salary v Dividend
A popular way for directors/shareholders of small companies to take money out of their company is to pay themselves a small salary and take the rest out in dividends. So for the next tax year (2019/20) what should the salary be set at to ensure a director pays the least amount of … [Read more...]
Expenses Landlords Can Deduct
Expenses Landlords Can Deduct Landlords must pay tax on any profit from their property rental business (although income from property of less than £1,000 a year can be ignored). In working out the profits, expenses are deducted from rental income. To ensure that the landlord … [Read more...]
Paying Family Members
Many small businesses, whether incorporated or not, are paying family members for working for the business. However, as a recent case shows, it is easy to make mistakes which can prove costly. The case in question, Nicholson v HMRC, concerned the payment of wages by a sole … [Read more...]
A Guide to Autumn Budget 2018
Philip Hammond presented the Budget on 29 October 2018. A summary of the main measures are: Personal Allowance & Basic Rate Tax From April 2019, the personal allowance will increase to £12,500 and the 20% basic rate tax band will increase to £50,000. Dividend … [Read more...]
Budget October 2018 – Tax Rates & Allowances
Budget October 2018 - Tax Rates & Allowances 2017/18 2018/19 2019/20 £ £ £ Income tax rates not including Scotland - (non-dividend income) As announced or unchanged 0% - starting rate for savings only - note … [Read more...]