For some time now, unincorporated businesses have been able to submit simplified accounts in order to settle their tax liabilities. The main advantage of using this system is that income and expenditure is based on money received from customers and money paid to suppliers. In other words, the accruals basis, where income and outgoings are based on the value of...
Class 4 NICs
The Chancellor announced two increases in Class 4 NI contributions for the self-employed in his budget and in the following week withdrew the increases for the term of the current parliament. His original notion was to start the process of equalising the NI contributions made by the employed and self-employed now that State Benefits, particularly the new flat-rate State Pension, are...
Dividend tax set-back
The final matter we want to showcase for this month is the proposed reduction in the dividend allowance from April 2018. At present, shareholders with dividend income below £5,000 will pay no Income Tax on their dividend income. From April 2018, Mr Hammond looks set to reduce this to £2,000. The average dividend yield for FTSE 100 shares is anticipated to...
Tax Diary April/May 2017
1 April 2017 - Due date for Corporation Tax due for the year ended 30 June 2016. 19 April 2017 - PAYE and NIC deductions due for month ended 5 April 2017. (If you pay your tax electronically the due date is 22 April 2017) 19 April 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 April...
Working from home
Clients often ask if working from home is going to create issues from a tax point of view. There are a number of scenarios to consider. Employers’ obligations to employee homeworkers: Equipment, services and supplies Employers that provide equipment, services and supplies to an employee who works from home, don’t have to report or pay anything if they’re only used for business purposes,...
Muras Matters: Taxation Award Finalists 2017!
Taxation Award Finalists 2017! We are very pleased to announce that Muras Baker Jones Limited has been selected as a Finalist by the LexisNexis owned Taxation Magazine for the 2017 “Single Office Tax Practice of the Year” Award, for the third year running . This award category recognises innovation and best practice in the field of taxation, with emphasis on an extra...
One week to go
Next week sees the end of the 2016-17 tax year. On the 6 April 2017, any action you take to minimise your tax liabilities for 2016-17 will be largely ineffective. So what, if anything, can you still action this week? Capital gains tax (CGT) The amount of tax free gains you can make during 2016-17 is £11,100. This exempt allowance is available...
New childcare funding choices
The government have launched a new website aimed at parents who may be able to claim for support with childcare costs. The web address is https://www.childcarechoices.gov.uk/. How Tax-Free Childcare works Working parents will be able to apply, through the childcare service, to open an online childcare account. For every £8 that families or friends pay in, the Government will make a top-up payment...
Muras Matters: 6 reasons to pay a pension contribution before the end of the tax year
6 reasons to pay a pension contribution before the end of the tax year Pensions continue to represent an important and tax efficient way of saving for retirement and there are a number of reasons to consider making a payment, or additional payments, into a pension scheme before the end of the tax year. Consideration of whether to make payments is...
Follow companies for free
If you want to keep an eye on documents filed with Companies House for a particular company, you can register for a new service that will do just that at Companies House. The new service is called “Follow” and it allows you to receive email alerts. Follow lets you receive email alerts of company transactions. The alert tells you instantly what...