If there’s one thing that keeps us awake at night it’s the thought of how many British businesses are failing to claim capital allowances to which they are entitled – worth billions of pounds across the board, according to some estimates.
Capital allowances provide the mechanism for tax relief on certain types of capital expenditure (the purchase of assets such as office furniture, or equipment) essentially providing a deduction against profits.
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No one should be without a financial plan.
Read our guide to get started.
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This issue details:
New minimum wages rates, New Apprenticeship funding, Property wealth v savings and pensions, IHT receipts
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This months articles:
Changes to business rates, Part time Self Employments, Help to Buy ISAs, Small Firms spent 10% of day chasing debt
So what is FRS 102 we hear you ask?
FRS 102 is the main new UK GAAP standard which forms the basis of accounts preparation in the UK and it replaces all of the current FRSs and SSAPs.
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.
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 tax increase, on which there was no consultation, will be phased in from 2017 and fully implemented by 2020.
The change was unexpected, and the new regime is highly complex, and many investors remain unaware of the change, or underestimate its severity.
Since the Summer Budget, a topic dominating discussions with owners of shares has been the Chancellor’s proposed new tax on company dividends.
As a reminder, the Finance Bill 2016 will abolish the 10% tax credit on dividend income, which will cease to be grossed up in personal tax computations from 6 April 2016. In its place will be a £5,000 dividend tax allowance.
Until now we had no firm details about how this dividend tax allowance will fit within the structure of personal allowances and tax rates, however the accounting profession has been working with the Treasury to produce some guidance which should be published on GOV.UK in the next few days.
The Chancellor’s 2015 Budget contained some Radical changes to Dividend and Rental Income – none of it good news!
Most business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?
Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.
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!
Auto-enrollment looms for small companies yet many are thinking they have nothing to worry about until 2016 or even 2017! Think again!
Book your place at our seminar here for 11am on 11 March 2015
The amount of inheritance tax expected to be paid by families in the next few years will reach a level higher than at any time since the early 1970s, according to calculations by the Institute for Fiscal Studies.
Changes to the rights of people whose spouses or civil partners die without making a will have come into force.
For married couples with no children, the surviving partner will now inherit their spouse’s entire estate, rather than £450,000 then half of the rest.
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.
HM Revenue & Customers (HMRC) have launched a new campaign targeting property landlords. The “Let Property Campaign” will encourage tax payers with undeclared income or gains to come forward voluntarily on the promise of preferential terms including having 3 months to calculate and pay the outstanding tax.
Tax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.
Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.
According to the adulterous website, IllicitEncounters.com, accountants are the most exciting workers to go on dates with. Not because number crunching is a big turn on, but because their ‘boring’ jobs makes them more interesting in the bedroom, apparently.
We are regularly asked by business owners how they should buy a new car or van, which is a sensible thing to do. As accountants, we can calculate the tax savings and costs of the various options, but at Morrell Middleton we also look at the general commerciality of the purchase, and what suits you and your business.
Do you fancy a flutter where you get your stake back, and you could become a millionaire?
The amount which an individual can invest in Premium Bonds has risen from £30,000 to £40,000 a year from 1 June 2014, in a change aimed to support savers announced in the budget earlier this year. The investment limit will be raised again in 2015/16 to £50,000.