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
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
Autumn statement 2015
Unlike the Summer Budget, the Autumn Statement 2015 added little that will be of relevance to small businesses: Annual investment allowance The allowance, which gives full tax relief to business investments in assets and equipment, will be reduced from £500,000 to £200,000 from 1 January 2016. The government have now ...more
Property taxes
A brief summary of changes to property taxes announced in the budget 2015 which will have a significant impact on buy to let landlords. Mortgage interest tax relief Under the current system, landlords may deduct mortgage interest in full from rental income on residential property in determining taxable rental profits. ...more
Summer budget 2015
The Summer Budget 2015 introduced a number of measures which will directly impact small incorporated businesses: Employment allowance From April 2016 the employment allowance which currently allows an employer to reduce their employer's NI by £2,000 a year will be increased to £3,000 a year. This allowance will however ...more