The current UK corporation tax rate of 20% is the lowest rate in the G20, the 20 major trading nations. This rate continues to apply until 2017 when it has been announced that the rate will be reduced to 19% and then 18% in 2020. This appears to make trading via a limited company more […]
Clarification finally issued on new dividend tax!
Following the announcement in the Summer Budget of a major change to the taxation of dividends, HMRC has now published a factsheet which clarifies the rules. How will they work? Changes to taxation of dividends In the Summer Budget the Chancellor dropped a bombshell for owner managers of smaller companies by stating that, from April […]
Corporation Tax quarterly instalment payments
Most companies pay corporation tax 9 months after the end of their accounting period. However, companies with profits in excess of £1,500,000 a year are required to pay corporation tax on a quarterly basis. The first 25% is due 6 months and 14 days into the period, with subsequent 25% payments due every 3 months […]
New intestacy rules if you do not make a Will
Many people die intestate because they think their estate will automatically pass to their spouse free of inheritance tax (IHT). This is not necessarily correct. Moreover, having a Will in place makes it easier to get a grant of probate and avoids the Statutory Intestacy Rules governing how the estate is distributed. From 1 October […]
Tax Diary of main events for Nov/Dec 2014
Date What’s Due 1 November Corporation tax for year to 31/01/14 19 November PAYE & NIC deductions, and CISreturn and tax, for month to 5/11/14 (22 November if paid electronically) 1 December Corporation tax for year to 28/02/14 19 December PAYE & NIC deductions, and CIS return and tax, for month to 5/12/14 (22 December […]
Agency workers and PAYE
Changes in the Finance Act 2014 have tightened up the rules for “self-employed” workers supplying their services through UK agencies, employment businesses and other intermediaries. From 6 April 2014 the agency must decide whether the way in which the worker does their work is subject to (or to a right of) supervision, direction or control […]
100% tax relief for a Porsche!
As you may be aware motor cars used in a business that emit no more than 95g CO2 per kilometre qualify for a 100% capital allowance. This threshold reduced from 110g back in April 2013 and there are now fewer cars that qualify for this generous tax relief. However, if your business can afford one, […]
Protect Your Pension from 55% Tax Charges
HMRC has just issued a reminder that the deadline to protect large pension funds from the decrease in the lifetime allowance is fast approaching. Lifetime allowance. There is a limit to the size of a pension pot that qualifies for tax breaks. If your pension fund exceeds this limit, the lifetime allowance, then there will be […]
The Employer’s £2,000 NIC Allowance
This valuable allowance is due to start for all businesses on 6 April 2014, and simply exempts the employer from the normal employer NICs of 13.8% of the earnings paid. The mechanics are that the allowance will be obtained via standard payroll software and HMRC’s RTI system. A facility will be added to the RTI […]