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Nine numbers you need to know

April 26, 2011 By Leave a Comment

Are you excited? What about? The start of the new tax year of course! Well okay, maybe entering a new fiscal year isn’t as interesting as the summer weather we have all been enjoying or the upcoming royal wedding, but it is still important – particularly for small business owners. Here are the top nine numbers you need to know to see you through the next twelve months.

1.         £7,475 (the personal allowance for those under 65 years)

The personal allowance is the amount of income you can earn before you have to start paying income tax. The good news is that the personal allowance increased by £1,000 with effective from 6 April 2011. What’s more, the Government has announced that the personal allowance will increase to £8,105 in 2012. 

However, the bad news is that the threshold at which tax payers start paying income tax at 40% has reduced to £35,000. This increases the need, for those individuals that own and run a limited company, to consider the how best to extract profits from the business – whether that be through salary, pension or dividends. [Read more...]

Filed Under: Business Tax

Budget 2011

March 25, 2011 By Leave a Comment

In the Budget speech, there was some further good news for small businesses, building upon what we had already been told in 2010’s budget. This is clearly a key aim for George Osborne, the Chancellor, who has said he wants to “make Britain the best place in Europe to start, grow and finance a business”.

Whilst we think this budget is broadly favorable to larger businesses, we believe that more could be done to help smaller businesses.   

The summary below sets out the changes that will have an impact for you or your business. 

 

 Individuals

Personal allowance

These allowances represent the amount of an individual’s income in the tax year that is not subject to income tax. [Read more...]

Filed Under: Business Tax, Legal Requirements, Personal Tax, Start-ups Tagged With: , ,

Companies House late filing penalties

March 4, 2011 By Leave a Comment

 

I have just spoken to one of my clients who had filed his annual accounts two months late to Companies House. My client was very upset as the fee charged for filing two months late was £375! The fees charged by Companies House were sharply increased in 2009 and are now – if you ask me -extraordinary.

To avoid any late filing fees to the Companies House you have to submit your annual accounts on time (within nine months after your company’s accounting period has ended).

If you are late, the penalty charges are:

No more than one month  £150.
More than one month but not more than three months   £375
More than three months but not more than six months  £750
More than six  months £1,500

 

Ensure you provide your accountants with your information well in advance of your deadline to enable him/her to complete and file your accounts on time!

Filed Under: Business Tax, General, Start-ups Tagged With: ,

10 great tips for your Self Assessment Return

January 20, 2011 By Leave a Comment

It is January once again and we are fast approaching the Self Assessment deadline for filing your 2009-10 tax return (31 January 2011).

I have put together a list of things to consider when completing your tax return. Whilst this is not a comprehensive list, it will hopefully provide a helping hand.  

1.       Check whether you need to complete a Self Assessment tax return.  If you have run a business, either as a self-employed person or as a director, you will have to submit a tax return. Yes, even if you earned less than the personal allowance. You’ll also need to complete a return if you received income (above set thresholds) on savings, investments or property. [Read more...]

Filed Under: Business Tax, Personal Tax Tagged With: , , , ,