From April 2025, there will be significant changes to Class 1 (Secondary) Employer’s National Insurance Contributions (NICs): • The Employer’s NIC rate will increase from 13.8% to 15%. • The Employer NIC threshold (the salary above which Employer’s NIC is payable) will drop from £9,100 to £5,000 per year. Employment Allowance Employment Allowance (EA) increases […]
In the intricate world of retirement planning, one size certainly does not fit all. As a small business owner or a director of a family-run enterprise, your financial future deserves a pension scheme tailored to your unique needs and ambitions. Keep reading to learn about the Small Self-Administered Scheme, or SSAS, a pension scheme that […]
When a customer purchases an item or service from a business an invoice confirming the amount to pay should be raised either at the time of ordering or after delivery. If the seller is VAT registered a specific type of invoice is required to charge VAT on sales or reclaim the VAT charged for goods and […]
Overview Dividend is taxed based on the total dividends received in a tax year which runs from 6 April to the following 5 April. So, for example, dividends received in the year 6 April 2020 to 5 April 2021 will be taxed in 2020-21 tax year based on tax rates applicable for that year. There […]
If you operate your business through a personal or family company and extract profits in the form of dividends, it is prudent to review your dividend policy to determine whether it would be beneficial to pay a further dividend before the end of the 2021/22 tax year on 5 April 2022. It should be remembered, […]
The tax systems contains a number of allowances which enable individuals to enjoy income and gains tax-free. One of these allowances is the annual exempt amount that applies for capital gains tax purposes. For 2021/22, it is set at £12,300. It will remain at this level for 2022/23. Nature of the annual exempt amount The […]
Owners of successful businesses frequently use companies as a trading medium not least because of the tax benefits that can be achieved. When the time comes for the owner to retire or reduce their involvement there are two options – sell or pass to the next generation. If the latter, then there are ways to […]
Owner manager companies are usually ‘close companies’ that is ‘under the control of: (a) five or fewer participators, or (b) participators who are directors’. For most small, limited companies, ‘participators’ means ‘shareholders’. However, the legal definition is broader in that a ‘participator’ can be anyone (or their associate) with a financial interest in the company […]
Under current rules, if a VAT return shows that a repayment is due then HMRC should repay within 30 calendar days of receiving the business’s VAT Return. If the repayment is not authorised within that time limit, the business will receive compensation in the form of a ‘repayment supplement’ being five per cent of the […]
It is prudent to plan ahead for retirement and tax breaks are available to encourage savings into a registered pension scheme. Contributions into a registered pension scheme attract tax relief as long as the contributions are covered by the available annual allowance and are not more than 100% of earnings (or £3,600 if higher). Tax-relieved […]
