Pension scams

The government has proposed a wide-ranging ban to prevent pension scams. The consultation listed the sorts of phone conversations that the government intends to fall within the scope of the ban. These included: offers of a ‘free pension review’, or other free financial advice or guidance assessments of the performance Read more…

Where is my profit, it is not in the bank

This is a question we are regularly asked by clients. Usually, the conversation is triggered when we discuss the end of year accounts. Before we explain why profits are not always represented by cash in the bank, we need to define the term “profits”. Profits are the difference between what Read more…

Rent a room at home tax free

On the face of it, the rent-a-room relief is straight forward: if your gross rents from letting are not more than £7,500 in the current tax year, there is nothing you need to do, this income is free of tax; but beware the small print. Gross rents are defined as Read more…

Involving children in your business

Whilst it is possible to involve your children in your business, this is a strategy that should be approached with caution. Giving shares in your company to minor children is perfectly possible, but any dividends that you pay to under eighteens will be treated as if the income belonged to Read more…

Saving to pay tax

If you are employed, or receive a pension from a non-State provider, any tax you should pay is probably deducted before payment under the PAYE rules. Assuming HMRC administer this process correctly, any taxes due should be settled in full. However, the self-employed, those in receipt of significant dividends or Read more…

Dying without a Will, bad idea

Many people die without making a Will. In legal terms, this means they die “intestate”. When this happens, the estate must be shared out according to certain rules. Individuals who may benefit under these rules are: Married partners and civil partners at the time of death. This includes separated partners Read more…

Minimum Wage legislation

No-one is going to complain if you pay more than the National Minimum Wage or National Living Wage rates – which ever applies. However, there are matters you will need to consider if you pay less than the appropriate minimum wage rates. The minimum wage legislation applies to workers or Read more…

Tax Diary August/September 2017

1 August 2017 – Due date for Corporation Tax due for the year ended 31 October 2016. 19 August 2017 – PAYE and NIC deductions due for month ended 5 August 2017. (If you pay your tax electronically the due date is 22 August 2017) 19 August 2017 – Filing Read more…

Making Tax Digital E common sense prevails

Making Tax Digital (MTD) is the government’s latest attempt to fully digitise the process of collecting data from taxpayers so they can speed up the process of calculating how much tax you owe. Until recently, we were facing radical changes to the tax system to accommodate this objective. Businesses (including Read more…

Director minimum salary levels 2017-18

Many director shareholders take a minimum salary and any balance of remuneration as dividends. This tends to reduce National Insurance Contributions, and in some case Income Tax. The planning strategy is to pay a salary at a level that qualifies the director for State benefits, including the State Pension, but Read more…

Uniforms, work clothing and tools

It is possible to claim for the cost of repairing or replacing small tools you need to do your job as an employee (for example, scissors or an electric drill), or cleaning, repairing or replacing specialist clothing (for example, a uniform or safety boots). If you need to buy other Read more…