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 ...

Tax Changes from April 2017

There are a number of tax changes that have come into effect this month; 1) From 6th April 2017 the IR35 status of a contract in the Public Sector is to be determined by the client, and not the contractor. The client may be the agency ...

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 ...

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 ...

Change to the Flat Rate VAT scheme

From 1st April 2017 a new flat rate VAT percentage of 16.5% will be applied for limited cost traders. A limited cost trader is one whose VAT inclusive expenditure on goods is either: – less than 2% of their VAT inclusive turnover ...

When to become VAT registered

The VAT registration level from 1/4/16 is £83,000. This means that if your turnover in the last 12 months exceeds £83,000 then you must register for VAT in the next 30 days. You will also have to register for VAT if you expect your ...

Autumn Statement 2016

The Chancellor’s Autumn Statement this week included some surprises, and some confirmations of previous government announcements. The main announcements affecting businesses were as follows; A new high VAT flat rate for service ...

Proposed changes for IR35 in the Public Sector

In my June newsletter I let you know about the Government proposing changes to the way IR35 works for public sector engagements. The formal consultation closed on 18th August 2016. The proposals are that, from April 2017, the ...

Making Tax Digital

In the March 2015 budget the Government announced it’s new initiative, Making Tax Digital. It has now published it’s consultation document, explaining the proposals in more depth. The Making Tax Digital(MTD) proposals only ...

Confirmation Statement

From 30th June 2016 the Companies House Annual Return has been replaced by the confirmation statement. The confirmation statement is very similar to the Annual Return. Once a year every company must check and confirm the information ...