Call: 01491 411077
Call: 01491 411077
As the end of the tax year approaches, it is prudent for those operating their business as a personal or family company to review the profits extracted so far in the tax year and to consider whether it is beneficial to take further profits before the end of the tax year. There are various ways…Read More
The self-employed have historically paid two classes of National Insurance – Class 2 and Class 4. However, this is set to change from April 2024 with the abolition of Class 2 National Insurance contributions. What are Class 2 contributions? The payment of Class 2 contributions has enabled a self-employed person to build up entitlement to…Read More
If you are self employed or a member in a partnership and have unrelieved overlap profits, you will not be able to claim relief for those profits after 2023/24. Overlap profits are profits that have been assessed twice – either in the early years of a business or on a change of accounting date. From…Read More
The Bank of England has warned businesses and households that the cost of borrowing will remain high for at least the next two years and although taking out a bank loan is cheaper than a credit card, the interest rate on unsecured loans is at an all-time high of 5.7%. However, there is a source…Read More
The profitability or earning capacity of a business may depend on one person or on a small number of people. Where this is the case, the business may be seriously compromised if that person, or one of those persons, falls seriously ill or has an accident. To protect against financial loss should such a situation…Read More
If you are self-employed, the way in which your profits are taxed is changing. As a result of the changes, you only have a limited window in which to claim relief for any profits which were taxed twice when you started your business. Basis period reform For 2022/23 and earlier tax years, self-employed individuals, whether…Read More
If you need to file a Self Assessment tax return for 2022/23, you have until midnight on 31 January 2024 in which to do this, as long as you file online. However, HMRC have been encouraging taxpayers to file their tax return early. Is this worthwhile and what are the benefits? Due a tax refund?…Read More
VAT registration is compulsory for any UK established persons who are in business and make or intend to make taxable supplies should either one of the following tests are satisfied: Under the ‘historical test’, if taxable sales have exceeded £85,000 in any rolling 12-month period, the business must register within the next month after exceeding…Read More
If you have employees who use either their own car or a company car for business mileage, you can pay mileage allowances tax-free up to certain limit. However, if you pay more than the permitted amount, the excess is subject to Income Tax and liable to Class 1 National Insurance. The amount that you can…Read More
The Chancellor’s recent mini-Budget and subsequent U – turns threw a number of spanners into the works as far as profit extraction strategies are concerned. Initial revisions to profit extraction strategies in the light of the mini-Budget announcements now need to be revised. Rates For 2022/23, the dividend allowance is £2,000. Where dividends are not…Read More
Inheritance tax is often described as a voluntary tax. While most of us do not know in advance when we are going to die, there are steps that you can take to reduce the amount of inheritance tax on your estate. Here are five suggestions. Leave everything to your spouse or civil partner The inter-spouse…Read More
If you operate your business as a personal or family company, you will need to extract some or all of the profits if you wish to use them personally. When it comes to tax, not all profit extraction methods are equal. While personal circumstances will dictate the most efficient way for you to extract profits,…Read More
How much will probate cost? We provide a full non-contentious probate service to our clients. This can include acting as an executor, extracting probate, managing the estate and dealing with HM Revenue and Customs as necessary. The probate services we provide include a wide range of services and so providing an exact quote can be…Read More
Background Company law dictates a company can only pay dividends out of available undistributed profits. The Companies Act 2006 details the correct administrative procedures which need to be followed which is beyond the scope of this article. Where dividend payments are made which are not backed by sufficient undistributed profits there can be significant tax…Read More
The number of HMRC investigations into tax returns is on the rise with over 100,000 investigations undertaken during the first quarter of 2021. As digital technology and data science develop HMRC are able to better focus their resources on those individuals who are more likely to be defrauding the exchequer. This has led to recent…Read More