From Apr 12 Personal allowances increase to £8,105 (from £7475) Now, higher rate taxpayers are slightly better off if earning exactly the same (the higher rate threshold has reduced by a lesser amount) but basic rate payers are much improved position. Last year higher rate payers were indifferent.
Highest rate reduction to 45% (from 50%) from Apr 2013 for incomes over £150k. Highest dividend rate reduction to 37.5% The 50% income tax rate was somewhat punitive and the amount of tax raised debateable so we welcome the slight reduction. The thinking is that more will be raised this way (higher declaration). However, we cannot understand amounting this ...read more
If a business is under the VAT registration threshold (£77,000) they can account and pay tax using a cash accounting schemeThis is probably our favourite bit of the budget and one we had been hoping for for years.To explain: before, a company declares income as soon as the invoice is made – or before – and ...read more
On business cars – more strict with respect to CO2 emissions (capital allowances on business cars)This was inevitable – and in line with “green” policy
Attributable to profits from patents and intellectual property From April 2013). 9.1% of expenditure (before tax) available as a “cheque in the post” from HMRC if it qualies as R&D – even if the company is loss-making.Excellent ideas – if the aim is to establish the UK as a hub of innovation.
Large companies corporation tax rate is reduced to 24% from 1 April 2012 Falling 1% each year until 2012 (to 22%) The small companies’ rate at 20%.Large companies have over £300,000 profits. Small companies have less. This is great for large companies – and investment from overseas. A good thing for investors and the economy (Britain is ...read more
If you or your clients have received an email purporting to be from HMRC - offering a tax payment this is almost certainly a scam. Please do not click on any link or give out any bank details!If there were a repayment due they would either write to you or update your account inline (for which either you or your ...read more
Answer: NoOnly if the expenses are put through the partnership accounts (give the expenses to the partnership accountant)What a partner cannot do is claim his personal (business) expenses against only his share of the business income. For example, if he wanted to put use of his home broadband through the business he couldn’t do it on an individual level. He ...read more
This is a burgeoning industry and many developers are confused about the tax aspects. Broadly, the tax treatment follows that of websites and treatment of software development costs.The difference is that, here, there is a clear economic benefit and intention of direct sales. Thus aside from the planning stage we should be looking to capitalise on the balance sheet ...read more
We have been receiving a number of complaints from clients and associates about a letter which says something along the lines of "we have tried contacting you about an underpayment but you have failed to co-operate. We will take steps to recover the monies from you".OR"we wrote to you recently and asked you to pay the amounts due or contact ...read more