Author Archive
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A Boost to Small Businesses
Small businesses will have access to an additional £450 million of discounted loans after the Royal Bank of Scotland (RBS) and Santander negotiated extra European funding. The funds have been secured from the European Investment Bank (EIB). The RBS will have funds available of £300 million at 0.6 per cent below its standard interest rate and Santander has £150 million to lend at 0.7 per cent below its usual rate. The available money is aimed at businesses ...
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Salary or Dividend – Which is Best?
Assuming your company is paying Corporation Tax at the small company rate of 20% (profits up to £300,000), it is generally more tax-efficient to distribute profits by way of dividends to shareholders. Overview: National Insurance is not payable on dividends. As a higher-rate tax payer, your employment income is taxed at 40%, whereas dividends are taxed at 32.5%. Employment earnings above £150,000 are taxed at 50% whereas dividends are taxed at 42.5%. Salaries attract both Employers and Employees National Insurance ...
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Pool Cars
There is no taxable benefit for an employee who drives a company car where the vehicle concerned qualifies as a pool car. A car only qualifies as a pool car if all the following conditions are satisfied: it is available to, and actually used by, more than one employee it is made available, in the case of each of those employees, by reason of their employment it is not ordinarily used by one of them to the exclusion of the others any private use ...
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What are the Tax Implications for Divorce?
When married couples or civil partners take the decision to separate then tax is not going to dominate conversation. However tax issues cannot be disregarded as urgent action may be required in the tax year of separation to avoid any nasty tax surprises. Generally transfers of assets between husbands and wife’s and civil partners take place on a no gain, no loss basis. However, this rule only applies in the tax year of separation. Transfer of assets ...
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Early Start for Business Record Checks by HMRC
Despite HMRC announcing that their proposed Business Records Checks programme (BRC) would commence later this year, we have been advised that the first BRC letters have been issued trying to arrange visits to businesses to carry out the records check. This has come as a surprise and should you receive such a letter please let us know immediately. Please remember that HMRC will look to impose penalties if the standard of your record keeping falls below what ...
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Company Cars – Advisory Fuel Rates from 1 March 2011
With effect from 1 March 2011 the revised advisory fuel rates relating to mileage payments for business journeys in company cars are as follows: Engine size Petrol Diesel LPG 1400cc or less 14p 13p 10p 1401cc to 2000cc 16p 13p 12p Over 2000cc 23p 16p 17p Petrol hybrid cars are treated as petrol cars for this purpose. The new rates are effective from 1 December 2010, but for the ...
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End Of Year PAYE ISSUES
With effect from 6 April 2011 the HMRC Employer CD Rom has been replaced with a new product called Basic PAYE Tools which is available from www.businesslink.gov.uk. HMRC will not therefore issue paper Employer Annual Packs and Employer CD-ROMs to finalise 2010-11 and start 2011-12. Instead of a CD-ROM the Basic PAYE Tools kit is now available to download. They are compatible with the 2010 CD-ROM as long as you have downloaded the November update. ...
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What is a Valid Tax Invoice?
To be a valid vat invoice it must: have the supplier’s vat number on it show the name and address of the supplier be addressed to the business be dated show the detail of the goods or services supplied show the total amount before vat show the vat rate show the amount of vat show the total amount including vat VAT input tax cannot be claimed on delivery notes, "pro forma" invoices or if the invoice states "this is not a vat/tax invoice". Talk to us TODAY ...
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Director’s Overdrawn Loan Account
An overdrawn loan account is where a company lends money to a director. In this situation tax issues arise as follows: A benefit in kind charge is due on interest free loans in excess of £5,000 and therefore a form P11D is required and income tax is payable personally by the director on the taxable benefit. A corporation tax charge of 25% of the overdrawn amount is levied on the company if the loan is not repaid ...
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Cash In Hand – HMRC Offer Plumbers’ Tax Amnesty Deal
HMRC have announced the introduction of the Plumbers Tax Safe Plan (PTSP). The idea behind the PTSP is to ensure that traders working in the plumbing, heating and gas installation sectors come forward and declare any previously undeclared income. The carrot behind coming clean is HMRC will deem this to be a ‘fresh start, and penalties levied by HMRC will be capped at 10-20%. Failing to take advantage of the amnesty deal will see HMRC levying ...
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