Tax-free savings using an Individual Savings Account (ISA)
All ages can benefit from a tax exemption up to certain thresholds as listed below. Under 18’s who do not have a junior trust fund can invest up to £3,600 in a Junior ISA 16 – 17 year olds can invest up to £5,640 in a cash ISA 18+ can invest up to £11,280 in a cash ISA Read More
Up To £25k Annual Investment Allowance
With most types of plant and machinery there is an Annual Investment Allowance (up to £25,000). To maximise relief, spreading the cost of qualifying expenditure over two years can be advantageous. Typically, if you make a purchase just before the end of the accounting year you will qualify for allowances a year earlier. Disposing of an asset also allows an earlier claim for relief – but be aware of the flip side – a potential additional... Read More
National Loan Guarantee Scheme
Small businesses could benefit from cheaper rate borrowing due to the new National Loan Guarantee Scheme (NLGS) that was launched in March this year by the Chancellor. This will allow small businesses more access to cheaper finance. Up to £20 billion of Government guarantees will be provided on unsecured borrowing by participating banks, which will see borrowing at a cheaper rate. The benefits of this will then be passed on to businesses, which means... Read More
Tips for Starting Your Own Business
Individuals starting up their own business can be tempted to cut out the middle man by doing everything themselves to minimise costs. This however is not always recommended, as this can be a false economy. It is usually more beneficial for your business to hire a skilled professional to carry out the services they are experts in. Well established businesses will take much interest in providing efficient services for you. This is where long- term... Read More
Non-payment of PAYE
From 6th April 2012, HMRC will have the authority to demand security in the form of a bond from an approved financial institution, or a cash deposit from employers who avoid paying PAYE or class 1 NICs. This will not affect employers who pay their tax on time and will not be used against employers who are having genuine cash flow difficulties. Currently HMRC can demand security for insurance premiums, environmental taxes and VAT, which is proving... Read More
Important Dates in March 2012
2nd March 2012 Last day to pay any balance of 2010/11 tax and Class 4 NICs to avoid an automatic 5% late payment penalty. 31st March 2012 End of Corporation Tax financial year. Filing date for Corporation Tax Return Form CT600 for period ended 31st March 2011. Image Copyright Dale Rockell Photography Read More
Working Flexible Hours
Employees requesting flexible working hours are currently only eligible if they are a parent of a child under the age of 17, or 18 if the child is disabled, or have caring responsibilities for adults. This also only applies if the individual has at least 26 weeks continuous service with their company. This is set to change by 2015, as the government plan to make changes by allowing any employee the right to request flexible working hours. Image Copyright... Read More
References
Employers don’t have to give references, but if they choose to do so, they must ensure that they are fair. Many employers choose to give only basic references, stating the job title, dates and reason for leaving. In this case, this will probably prompt a phone call being received from the individual’s new employer requiring more information. If an employer decides to give a reference, they should make sure it paints a realistic view of... Read More
Bookkeeping
With the strict emphasis by HM Revenue & Customs to keep all your financial records accurate, it is advisable to appoint a qualified bookkeeper thus avoid any penalties. Many people think that by doing their own bookkeeping, they will be saving themselves money. In fact, if you are under-qualified and unsure of the bookkeeping, you will be costing yourself more time and money in the long run, as your accountant will have to pick up the pieces... Read More
Hidden PAYE Penalties
Rumours are circulating that the Inland Revenue is about to issue penalties regarding PAYE payments on unsuspecting businesses. PAYE Return Forms (P35) The PAYE Return Forms for 2010/11 were due for submission by 19th May 2011, which means the Taxman should be processing them by now. This year this might well prompt a review of payment dates. Penalties Any late PAYE tax and NI payments due for 2010/11 will be liable for a penalty. If one late... Read More
