VAT – 20%, 5%, 0%, Exempt, outside scope? Which rate should you charge?
HMRC has updated their guidance document – VAT rates on different goods and services.. The guide covers a range of business types such as health, education, welfare and charities, sport, food and drink, building and construction, land and property etc.. If you are unsure or would like confirmation that you are dealing with VAT items […]
The four-day week – would it work for you?
More than 70 companies and organisations with over 3,000 staff are taking part in a pilot four-day working week, with no loss of pay for the employees. So,that’s 100% of the pay for 80% of the time, as long as at least 100% productivity is maintained. Similar pilot schemes are running in other parts of […]
The personal tax allowance – it can “disappear”
Currently, a taxpayer is entitled to a personal tax allowance of £12,570 p.a. which converts to a tax code of 1257. The tax code will usually be shown on the payslip. In some instances, the figure will be higher than this, but for many people it will be lower. For those with taxable income in […]
Do you have significant capital expenditure plans for your limited company?
Get the timing right to maximise tax benefits. Life in taxation is always a moving goalpost – and things might change. However, as the rules currently stand, the 130% “super deduction” capital allowances will cease on 31 March 2023 and the 100% Annual Investment allowance limit reduces from £1 million to £200,000 from that date […]
In a financial crisis -keep an eye on your debtors!
Late payments are expected to grow significantly in the coming months following rising inflation and interest rates. Cashflow is necessary to fund business growth, paying the wages and your suppliers. There are various tools available to monitor the financial health of your customers and to automate debt chasing. There are also ways of making it […]
Are you paying dividends legally?
It is common for a limited company to remunerate the directors/shareholders via a combination of dividends and salary. A dividend can only legally be paid however if there are sufficient reserves in the company to be able to do so. Where shareholders have received a distribution (e.g., a dividend) from the company knowing at the […]
Pensions for employees – be careful with seasonal or temporary staff
If you employ seasonal or temporary staff, you must assess them individually based on their ages and how much they earn every time you pay them. Any staff that are aged between 22 to State Pension Age and earn over £192 a week, or £833 a month, must be put into a pension scheme which […]
July 31st – ensure you have the funds available to pay the second “payment on account” for 2021/22
The second income tax payment on account becomes due for payment on 31 July – interest is charged on late payment and penalties can also be levied. This will, in most cases, be the same amount as was paid “on account” on 31 January. However, it is possible to reduce the amount if it is […]
Class 1A NI and P11d forms
The deadline for supplying P11d forms showing the benefits in kind for employees is 6 July and the Class 1A NI liability is due for payment on or before 19 July. A benefit in kind can arise on company cars and/or vans, medical benefits, and many other items which might have been paid by the […]
Taking on your first employee
There are many rules that new businesses must consider when they start employing staff for the first time. These include registering for PAYE as an employer with HMRC. This must be done before the first payday, and this also applies to limited company directors who are going to be paid by the company. You do not […]
