Taxable interest? With interest rates rising this might affect you soon
A “savings allowance” is available to basic rate taxpayers – £1000 p.a. and higher rate taxpayers – £500 p.a. With low interest rates – e.g. 0.1%, £1m in savings would be needed to generate £1000 interest income. However, with interest rates on the rise – and more to come? – a taxable position could soon […]
Bookkeeping – keep your business and private spending separate!
Business expenses can be claimed against tax, but personal expenditure cannot. It is therefore necessary to distinguish between the two. Many businesses on starting up will continue to use a “personal” bank account for their business transactions. However, it will be far easier to administer if a business account is opened up at the outset. […]
Inheritance Tax – Have you given this any consideration recently?
Inheritance tax is a charge that can be applied on the estate (the property, money and possessions) left behind when someone dies. You shouldn’t need to worry about IHT if: If your estate is worth more than £325,000, anything above this threshold could be subject to IHT at a rate of 40%. There is also […]
Turmoil in the finance world!!
The recent announcements by then Chancellor Kwasi Kwarteng regarding tax and NI cuts, changes to proposed corporation tax rates etc were welcomed by some, but it threw the financial markets into meltdown. The announcement that the additional tax rate of 45% for those with income over £150,000 was to be cut to 40% was the […]
Do you sell via online platforms and if so, are you accounting correctly?
The Internet means a business can sell products to practically anywhere in the world. There are many online selling platforms– Amazon and Etsy to name just two. Set up an online shop, upload a photo and description of the products and hopefully the orders start rolling in.The platform collects the money from the customer sends […]
The upsides (and downsides) of being a higher rate taxpayer
The payment of tax is a necessary evil and a way of life, although no one likes paying it! A pay rise is always welcome, but the downsides may be an increase in student loan repayments and, withdrawal of child benefit as earnings increase and additional tax and NI; sometimes there is really can be […]
How do you deal with VAT?
There are various VAT schemes and methods available to calculate VAT. The standard method is to account for VAT based on the dates of the invoices, so VAT could be payable to HMRC before you have received the monies from your customer, but conversely, VAT can be reclaimed on supplier invoices even though they have […]
Good news for limited companies!
The mini budget in September had a raft of tax cuts One proposed tax increase where tax planning has been ongoing for around 2 years now to reduce the impact has been scrapped! Good news for limited companies – the corporation tax rate is to remain at 19% whereas it was planned to increase to […]
Interest on late payment of tax
HMRC interest rates are linked to the Bank of England base rate, and the increase in early August from 1.25% to 1.75% has triggered another increase in rates for late payments. This takes effect from 15 August 2022 for late quarterly instalment payments, and late payment interest for other late payments will increase from 23 […]
Employer PAYE — new recurring Direct Debit functionality
Currently employers can set up a Direct Debit to collect a single payment, but not a recurring Direct Debit. By mid-September HMRC should have in place the ability to set up a recurring Direct Debit for employers. This aligns to the ambitions of the HMRC Payments Strategy, to make available one consistent set of payment […]
