Universal Credit
Universal Credit Last year saw the introduction of Universal Credit, which is the largest overhaul to the benefits system since the 1940s and which could affect up to 8 million people. The concept behind the new system is to “make work pay” so that people are not trapped on benefits because they would lose money […]
Pensions, net or gross
Pensions, net or gross Contractors often pay into a pension as a way to lower their overall tax liability, but many do not understand that the way the payment is made, and who the contract is between, has implications on how the tax relief is obtained. We advise checking to ensure yours is being treated […]
Tax return pitfalls
Tax return pitfalls We’re now into the 2014/15 tax year, which must mean it’s time to start thinking about the joy of completing your 2013/14 tax return! Many contractors will leave this task to their contractor accountant, but if you do complete it yourself you should be mindful of a few common mistakes. Here’s our lucky […]
Paying income tax through your tax code
Paying income tax through your tax code If you are a director of a Limited Company then you will need to file a tax return each year and, if there is tax owing, you will need to make payment to HMRC. If your liability is less than £3,000 you can apply to have this collected […]
Dividends, share classes and dividend waivers
Dividends, share classes and dividend waivers A dividend is money paid to a shareholder in return for their investment in a company. Dividends can be paid monthly, quarterly or annually as the directors of the company see fit. The only restriction is that the company must have profit available to pay out – management accounts […]
IR35 myths
IR35 myths We talk to many contractors about IR35, and so we hear many misconceptions about the legislation and its effect in practice. There is a lot of misinformation on the web, and a lot of advice given by “my friend at the pub” that isn’t always entirely technically accurate, so it’s not surprising that […]
HMRC’s bank raiding powers
HMRC’s bank raiding powers George Osborne announced a proposed new system during the 2014 Budget that would allow HMRC to seize assets from anyone that owes more than £1,000 in tax or tax credits. That in itself isn’t really anything new, HMRC can already seize property or cash if they go through the Courts, but […]
It’s never too early to plan ahead
It’s never too early to plan ahead We often get asked about how to be tax efficient when running a Limited Company, and what many people don’t realise is that this also ties in quite nicely with your final exit strategy from your Limited company. If you take a long term view and plan ahead, […]
Are you claiming the new Employer’s Allowance?
Are you claiming the new Employer’s Allowance? One of the welcome changes confirmed in the 2014 Budget is the new Employer’s Allowance, which entitles most employers to reclaim up to £2,000 in Employer’s National Insurance. The aim of the allowance is to reduce the cost of employing people, and thus generate more jobs. The new […]
Do you need to file a tax return?
Do you need to file a tax return? Each year HMRC send a Notice to Complete a tax return to anyone they think requires one, but be careful because it still remains your responsibility to inform them if you need one, and you’ll still get a penalty if you fail to complete one when necessary. […]