HMRC Delays Making Tax Digital

HMRC has today announced significant changes to the roll-out of its Making Tax Digital scheme, which was due to go live from April 2018. The scope and timetable have now been pushed back following feedback and concerns about the broad scope and short timescales from parliamentary bodies, businesses, the accounting profession and software companies, including Xero. Only businesses with a […]

SME borrowing set to rise in 2017

SME borrowing is projected to rise 22% in 2017, according to Zurich. The survey of 1,000 SME owners showed that firms are planning to borrow an average of £41,770. This would see lending to SMEs rise to over £50 billion in 2017. Anne Griffiths, head of SME proposition at Zurich, said: “Borrowing can often be indicative of confidence, and increased […]

Exporting for small businesses

Selling goods and services overseas for beginners. Internationalising your client base can be an intimidating prospect for small business owners with no experience in trading overseas. Depending on your sector and your export destinations, deciding to sell products and services abroad can increase your expenditure, consume your time, and introduce new regulatory and administrative complexities. Additionally, the decision taken by […]

Property income and tax

Property income and tax Tax, reliefs and allowances on different types of property income. There are many ways to earn an income from property such as residential properties, furnished holiday lettings, commercial properties and renting out a room in your house. The exact tax treatment and allowable expenses will differ depending on the type of property you own and your […]

Thinking About Incorporating Your Business?

Where a sole trader, partnership or LLP has established a significant value for the goodwill of their business it was possible up until 3 December 2014 to transfer that goodwill to a limited company and pay just 10% capital gains tax by claiming entrepreneurs’ relief. The former owner(s) could then draw down on the loan account created with the transferee […]

Should I Use The VAT Flat Rate Scheme For My Small Business?

 The VAT Flat Rate Scheme is intended to simplify VAT accounting and reporting for small businesses, and some may even find that they pay less VAT than using normal VAT accounting.  To join the scheme your VAT turnover must be £150,000 or less (excluding VAT), and you must apply to HMRC to use the scheme. You can remain in the […]

Company Car Advisory Fuel Rates

COMPANY CAR ADVISORY FUEL RATES  These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December.  In line with an increase in fuel prices, the rates that apply from 1 June 2016 are shown below: Where there has been a change, […]

Salary or dividend?

What’s the most tax-efficient way to pay yourself in 2016/17? Owner-managers and contractors often pay themselves in a combination of salaries, bonuses and dividends. A common strategy is to draw a salary of around £8,000 while also extracting profits from the business as a dividend. A salary of £8,060 (for the 2015/16 tax year) preserves entitlement to the state pension […]

New limit for the Annual Investment Allowance

From 1 January 2016 the Annual Investment Allowance (AIA) fell from £500,000 to a new permanent level of £200,000. This reduction will undoubtedly have an impact on many businesses and the timing of expenditure will be critical when maximising claims under the AIA. The capital allowances rules can be complex and it is important to consider the timing of any expenditure you are […]