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Business Tax News

January 31st Is Looming...

Are you likely to have problems paying your tax bill? As part of the Governments initiative to help businesses in the current financial crisis a new dedicated Business Payment Support Service has been set up. If you anticipate that payments becoming due will cause you problems call them on 0845 302 1435, have your tax reference to hand together with details of current business income and expenses. They will review your circumstances and wherever possible will agree to spread the payments over a longer period. No late payment surcharges will be applied but interest will be charged until the liability is settled in full. For more information please call us.

January 2009

Surviving the Credit Crunch

Barely a day goes by without a news story about the struggling economy, and you may be concerned about how your business will cope in the so-called 'Credit Crunch'...

» Download our information sheet...

November 2008

National Minimum Wage

From 1st October 2008, the National Minimum Wage increased to £5.73 an hour for staff aged 22 and over; the rate for those aged 18 to 21 increased to £4.77 an hour with the rate for those aged 16 and 17 increasing to £3.53 an hour.

Updated September 2008

Small company dividends

In March 2006 the tax advantage of the self-employed turning themselves into Limited Companies was slightly reduced (but still worthwhile); from April 2007 the advantage was reduced slightly further with the rise in the Corporation Tax rate for the first £300,000 of profits to 20% (21% from April 2008). The net effect is that dividends taken on taxable profits lower than £300,000 will have been taxed at a 20% tax rate but compare that with the 28% rate for self employment (20% income tax and 8% National Insurance). This works on each shareholder in the business where they have earnings up to the higher rate tax threshold. Above the higher rate tax band rate the difference is marginal, so we work with you to seek to avoid that happening!

Do not hesitate to call us if you are at all unsure what to do.

Updated September 2008

Audit Limits

In 2004 the audit exemption limit rose to £5.6m (from £1m) and has at last moved again after constant mutterings in government. The 2004 change was estimated to save businesses over £60m per year in accountant's fees so the new change will no doubt help too!

In 2008 the audit exemption limit rose for accounting periods starting on or after 6th April 2008. Companies (or groups) with an annual turnover of less than £6.5m (previously £5.6m), and assets less than £3.26m (previously £2.8m) are exempt from audit requirements – those above require a UK statutory audit.

The limits for defining "small" companies also rose to the audit thresholds - these limits are relevant in order to claim higher rate capital allowances.

Updated May 2008

Annual Leave

From 1 October 2007 the minimum entitlement changed from 20 days to 24 days (if the employee works a 5 day week) and from 1 April 2009 it will  change again to 28 days. This can include the 8 bank holiday days.

Part-time workers are entitled to the same leave pro rata.

Updated January 2008

Capital Allowances

Capital Allowances for the tax year 2007/08 are 50% in the year of expenditure for all types of plant and equipment including IT expenditure.

There are changes from April 1 2008, predominantly amongst these are 100% allowances for all expenditure to £50,000 in a year and 20% thereafter. Writing Down Allowances are also reduced to 20% from this date.

The future allowances for low CO2 emission cars and energy efficient equipment currently allowable at 100% are currently unknown.

Updated January 2008

Use of home allowances.

The Revenue has agreed that up to £156 per year may be claimed for home working without supporting evidence.

06/10/03

Money Laundering

Within the Proceeds of Crime Act, accountants, auditors, estate agents, tax advisors and other professionals have to report any suspicious transactions under the 1993 Money Laundering Regulations. If we are called upon to do this we also cannot advise you of what we are doing...