On The Spot Blogs

Autumn Statement - AKA The Pre-Budget Budget

Today's Autumn Statement was more of a mini Budget than usual. Presumably due to the recent pressure being applied by the opposition.

The good news for businesses is that taking on an under 21 year old won't cost you any national insurance, but only from April 2015. In the meantime, if you can't wait, you can employ anyone on up about £22k (or more than one person on lower salaries) from April 2014, and, under a previously announced measure, this won't cost you any national insurance either. Both rules will continue into April 2015, so you could arrange your workforce to cost you no national insurance at all.

It has at last been recognised that small retailers need help in competing against the Internet. Potentially, the most valuable relief is a 50% reduction in rates when re-occupying an empty property. Being able to pay rates in monthly instalments may also be helpful for some.

 

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#Tax Myth 13 - Your Income Is The Same For All #HMRC Purposes

#Tax law is set up by different politicians at different times to achieve different aims, so we often end up with a strange mix of outcomes.

You may know what your Income is for income tax & national insurance purposes, but what about pension purposes? Child benefit high income charge? Childcare vouchers?

Here's a list of the main sources of income and when they're applicable when dealing with #HMRC:

 

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Become A Limited Company - Should You, Shouldn't You? Top 5 Questions To Answer

Here are the main questions we ask our clients before making a recommendation:

1. ARE YOU MAKING TAX LOSSES?

Yes - If you are a Sole Trader in your first 4 tax years of trading you can offset these losses against other taxable income from the previous 3 tax years.

 

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Sole Traders - Six #Tax Numbers You Must Know

1. 4 Years - If you are in the first 4 years of your business and make a loss, you can use this loss to reduce your tax bill in the previous 3 years, such as from the job you had before you set up your business. You will receive a tax refund.

2. £5,725 - If your profits are lower than £5,725, you don't have to pay the annual £140 Class 2 NI, unless you need a credit towards your state pension. Ask for a repayment for earlier years.

3. £7,755 - If your profits are higher than £7,755, you will pay 9% Class 4 NI. This gets you no state benefits and effectively increases your tax rate from the 20% income tax rate to a total 29% tax rate.

 

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