News From Mark Stanley Accountants

End of the tax year

The end of the tax year 2017/18 is approaching, and as such there are a few things we should be thinking about; – the dividend tax free allowance of £5,000 is available up to 5th April 2018. From 6th April 2018 this allowance reduces to £2,000. Make sure your shareholding in your company reflects this ... Read More

The new £1,000 tax free trading allowance

The new £1,000 tax free trading allowance is available from 6th April 2017. This covers small amounts of trading and miscellaneous income from providing goods, services or other assets. The trading allowance provides a complete exemption from income tax if the total trading and miscellaneous income in the year is less than £1,000. Aswell as ... Read More

Making Tax Digital

Making Tax Digital is a government plan coming into force from April 2019. The aim is for individuals and businesses to submit quarterly returns instead of the annual tax return, in operation now. Information such as bank interest and income from employment will be given directly from the bank and employers to HM Revenue and ... Read More

Ltd company v sole trader

With the change in the Corporation Tax rate to 19% from 1/4/17, and the dividend tax allowance of £5,000 in 2017/18, reducing to £2,000 from 2018/19 the tax savings of having an incorporated company as opposed to being a sole trader are shown in the figures below. The assumptions I have made are: – for ... Read More

U-Turn on National Insurance

Further to my most recent post on the budget the Chancellor, Philip Hammond has scrapped changes to class 4 National Insurance following protests from the self employed, lobby groups and MP’s. The Chancellor confirmed that the Government will continue with the abolition of Class 2 NICs in 2018. The increase in National Insurance was due ... Read More

Budget 2017 Summary

The following are the main points of the 2017 budget affecting Small and Medium Sized businesses; – Class 4 National Insurance for the self employed to increase from 9 to 10% in April 2018 and a further increase to 11% in April 2019. Class 4 National Insurance is based on the profits of the self ... Read More