This year it could be more important than ever to know what liabilities you may face in January, with many businesses and individuals facing cash flow issues due to Covid.
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I like driving in my car (it’s not quite a Jaguar)
In the past, whenever a client has posed the question “….and how about a company car?” (usually with a hopeful glint in their eye), I have always been pretty quick to quash their dream of a sparkling new Jaguar, paid for by their company, being a brilliant, tax efficient benefit of business ownership. Up until now.
Continue ReadingOops!… I did it again…I left my tax return to the last minute!
The deadline for filing your 2018.19 self-assessment tax return is 31 January 2020. If you haven’t got round to completing it yet, or are concerned about a large liability – don’t worry! You are not alone, and we might be able to help. We might even be able to reduce your liability with some tax planning suggestions.
Continue ReadingResearch and Development – it’s not all lab coats and test tubes
Have you come across Research and Development relief (R&D) before? If you own or run a company, this relief could be hugely advantageous to you.
HMRC are really keen right now to help companies in developing new and exciting products; these range from anything to developing mobile phone apps to creating a new part for a bike; if the product is new and innovative, it could be eligible for this relief.
Continue ReadingSecond property? Be aware of the change to Letting Relief
When you sell your home, if it is the only property you own, it is unlikely you will pay any capital gains tax. This is because a relief called Private Residence Relief (PRR) is applied.
If you own a second property and that property is rented out, a relief known as ‘letting relief’ may be available on the second property. The impact of letting relief is to reduce the amount tax payable on the eventual sale of that second property.
Continue ReadingSave cash by filing your tax return early
When you calculate the tax you owe through self-assessment, HMRC ask you to make ‘Payments on Account’ (‘POAs’) towards your liability for the following tax year. By default, these are set at the same level as the previous tax year’s liability.
The first of these payments is due on 31 January in the tax year to which it relates, and the second is due on 31 July following the end of the tax year. For example, POAs for the 2018/19 tax year (6 April 2018 to 5 April 2019) are due on 31 January 2019 and 31 July 2019 and calculated based on the level of your tax liability for the previous tax year, 2017/18.
Continue ReadingTax Free Childcare – don’t miss out!
Many people have come across childcare vouchers in their employment – essentially, this is where an employer can ‘award’ vouchers which are paid tax and NIC free.
However, HMRC have been intending on abolishing this scheme for some time, recognising the lack of equality between employed and self-employed individuals in this area, and the old childcare voucher scheme is now closed to those who were not in it already.
The alternative to this is called ‘Tax Free Childcare’ and is in theory much simpler to administer than the old childcare voucher scheme.
Continue ReadingHey Big Spender!
There have been some pretty significant changes to capital allowances recently, and it’s important to consider these when making investment decisions.
Continue ReadingHappy New (Tax) Year!
With the tax year end fast approaching, it’s time to ensure that your tax adviser is working with you to mitigate your liability as far as possible.
There are some very simple tax planning opportunities which can be quickly and easily implemented to make savings.
Continue ReadingNew Year, new start?
As per our recent blog post, the deadline for filing self-assessment is 31 January 2019. Once this is completed for the year and out of the way, it is a natural time to reflect on the service you have received from your current accountant. Many potential clients we speak to are keen to change accountants for various reasons, but fear that it will involve too much hassle. However, be assured that there is very little administration for you at all.
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