Guidance on the impact of the Budget 2017 on small businesses and contractors. Reduction in dividend allowance Currently an individual may receive up to £5,000 in tax free dividend income each year and from April 2018 this allowance will be reduced to £2,000. Making tax digital For sole traders and partnerships ...more
Autumn statement 2016
Guidance on the impact of the Autumn Statement 2016 on small businesses and contractors. Class 2 National Insurance As announced at Budget 2016, Class 2 NICs will be abolished from April 2018 and self employed contributory benefit entitlement will be accessed through payment of Class 3 and Class 4 NICs. All self ...more
Tax efficient dividends and salary for directors for 2016/7
From 6 April 2016 the dividend tax credit system has been scrapped and replaced with a new dividend allowance of £5,000. Over and above this £5,000, dividend income is taxed as follows: If you have any unused personal allowance (£11,000 for 2016/17) then that element is tax free. Dividends in the basic rate tax ...more
The Companies House confirmation statement
The Companies Act requires companies to maintain certain information in their company registers - records of company information such as directors, secretaries, shareholders and any charges on the company. Every year companies had to file an annual return with Companies House confirming the information in these ...more
P11d dispensations
In previous years, a company had to produce a form P11d for directors or employees earning more than £8,500 where they had been provided with a benefit in kind or where the company had made expenses payments to or on behalf of their directors or employees. Where these expenses were incurred wholly, exclusively and ...more
Budget 2016
On 16 March 16 the government delivered the 2016 Budget: Changes in tax rates and allowances The following changes were announced: Corporation tax, which is currently 20%, will be reduced to 17% by 2020. The personal allowance which for 2016/7 is £11,000 will for 2017/8 increase to £11,500. Similarly, the higher ...more
Charging a business for mobile phone costs
Companies can provide all directors and staff with one mobile phone (or SIM card) each and, as long as the contract is in the company's name and there is some element of business use, the mobile phone can be used for both business and personal purposes without resulting in a taxable benefit in kind charge on the ...more