Many employees need to travel as part of their job for various reasons, whether it’s acquiring new customers, working with current ones or attending conferences and events.
The system of benefits and taxation surrounding this essential economic activity is classed as ‘travel and subsistence’ in the eyes of the taxman.
This months endition includes:
- Lack of funding
- New Minimum Wages rates
- New Business Rates Start
Yet again small business owners are targeted by the government !
Read about the Winners and Losers in our guide to the 2017 budget!
Bedtime reading for things to know about before and after the tax year end.
This month edition covers:
SME Borrowing rise
Retired income is up 13%
Small firms pay above 1% minimum Pension
Our summary of the latest budget, the first since Brexit! Download here
Last year 608,110 businesses were incorporated, here are a few things for you to consider when starting your own business. Click here to download
You may think that 31 January 2017 is months away but completing your self-assessment tax return is something many people fail to do straight away, and often it is not completed until quite late in the year. There are many reasons why completing your tax return NOW may benefit you;
With the new 7.5% Dividend tax starting on the 6 April 2016 we have prepared some guidance on what to consider when declaring/taking your dividend in 2015/16 and 2016/17. Down load it by clicking here.
– In amongst playing pranks on your nearest and dearest, 1st April 2016 also sees changes to the National Minimum Wage (NMW) and introduction of the National Living Wage (NLW) for employees aged 25 and over.
From 1st April 2016 the minimum rates of pay are
– Age 25+ – £7.20 per hour (the National Living Wage)
– 21-25 – £6.70 per hour
– 18-21 – £5.30 per hour
– <18 – £3.87 per hour
– Apprentices – £3.30 per hour
In addition to these changes, the penalty payable by employers who underpay is being increased from 100% to 200% of the underpayment due to each worker.
The TV programmes of many of our youths conjured images of the year 2020 seeing us living a life of plentiful leisure time, a fashion of shiny silver suits and an army of robots taking care of all our needs.
It is clear (to most of us at least!) that this isn’t how 2020 will look, however we do know how some key aspects of our businesses will look.
From 1 October 2015, the national minimum wage rates increase by between 2% and 20% with our youngest employees being both the biggest winners and losers depending on how they are employed.
– Apprentices * – £3.30 (up from £2.73) – up 20%
– Under 18’s – £3.87 (up from £3.79) – up 2%
– 18 to 20 year olds – £5.30 (up from £5.15) – up 3%
– 21 years and older – £6.70 (up from £6.50) – up 3%
If you have any queries on the minimum wage or running your payroll, please don’t hesitate to contact our team.
Thousands of families who set up “discretionary trusts” so they could leave property to children in a tax-efficient manner will miss out on the Government’s valuable new inheritance tax allowance unless they make significant changes to their will, it has been warned.
Homes left to children through a discretionary trust will not benefit from the “family home allowance”, worth up to £350,000 per couple from 2020, because assets do not pass directly to children. Discretionary trusts – the most common form of trust – were widely used in the past to minimise inheritance tax (IHT).
Thousands of older savers who use the new pension freedoms to pay off debts could be forced to pay 70% tax on withdrawals they expected to be tax-free if they continue to save for retirement, pension experts have warned.
A little-known quirk in the rules designed to prevent pensioners abusing the tax system means that even over‑55s with modest pensions are at risk of unwittingly breaking official savings limits. Tweaks which mean the rules now affect far more people were quietly made in April this year.
The Chancellor’s 2015 Budget contained some Radical changes to Dividend and Rental Income – none of it good news!
On 1st July, the government welcomed a judgment from the Supreme Court that found the government’s proposals for delivering Tax-Free Childcare to be clearly lawful.
It also confirmed that, as a direct result of the legal challenge, the scheme is now expected to launch from early 2017. The existing Employer‑Supported Childcare scheme will remain open to new entrants until Tax-Free Childcare is launched.
Many people still refer to these contributions as “stamps” from the days when you actually bought a National Insurance stamp from the Post Office to stick on a card.
Nowadays the flat rate of £2.75 per week is paid either by monthly or 6 monthly direct debit, in arrears, or on receipt of a bill from HMRC.
With effect from year 2015/2016 your Class 2 NICs liability will be established within your Self Assessment Tax Return and will be payable alongside Income Tax and Class 4 NICs which are based on the level of profits from self employment.
The final direct debit payments will be taken on 10 July 2015 for the period ended 11 April 2015.
New rights allowing UK parents to share leave following the birth or adoption of their child have come into effect from 1st April 2015.
This will effect both parents and employers, and it is important that both understand the potential benefits and obligations they have to keeping within the regulations.
Is your ambition to grow your business, and you need support to understand:
– the amount of finance needed?
– where funding could come from?
– where do I start?
If the answer to any or all of these questions is “yes”, we are pleased to announce that our team at Morrell Middleton are able to work with you, with our costs subsidised by up to as much as 60% to answer these questions. You need to act quickly though, as some funding ends 31 March 2015
Have you or someone you know received a PPI repayment/compensation?
If the answer is yes, did you know that the interest element of what is received is taxable? Further, did you know that all the banks and building societies making payments are notifying HMR&C of who they are paying and how much? So what does this mean for you?
Now the dust has settled we have produced a 4 page guide to the relatively quiet 2014 Chancellors Autumn Statement for you to download here!
This question at first may seem rather crude or tasteless, but new research from Gocompare.com Money has found that millions of UK adults are relying on the Bank of Mum and Dad for financial help, until their own retirement, with nearly one in 10 (8%) of people surveyed saying they face financial trouble without future inheritance money.
Don’t get caught out by the increases in National Minimum Wage which come into place from 1 October 2014.
It is also important where you have younger employees, to ensure that you make sure they get the paid at least the minimum rate as they go through the age brackets, and as an employer you don’t become guilty of paying less than minimum wage.
Full details of the rates can be found at https://www.gov.uk/national-minimum-wage-rates