How to get money out of a Limited Company

Since 5 April 2013 the additional rate of income tax payable on income over £150,000 is reduced from 50% to 45%. Many earners in this tax bracket receive their income as dividends.  A 40% tax payer pays an effective rate of tax on the net dividend of 25% Because of the 5% reduction mentioned above a 45% taxpayer (receiving gross income above £150,000) pays a rate of tax reduced from 36.1… Continue Reading

Employing Family Members

There is a band of earnings which are subject to ‘nil rate National Insurance contributions’ – this apparent contradiction in terms means that no contributions are payable, by employee or employer, but the employee’s contribution record is still franked for pension and Social Security benefit purposes. For 2013/14, the ‘nil rate band’ runs from the ‘Lower Earnings Limit’ of £1… Continue Reading

Cash Accounting Schemes for Small Business

There have been substantial last-minute amendments to the cash accounting scheme for small businesses, originally announced in last year’s Budget. The scheme will give qualifying businesses the option of calculating their taxable profits as cash received less payments made in the year, so ignoring creditors, debtors, changes in stock levels, etc. It takes effect for 2013/1… Continue Reading

Tuchbands Budget Report

The Chancellor’s 2013 Budget contained some important announcements and confirmed a number of changes planned for the new tax year. Following this, we are delighted to attach the Tuchbands Budget Report  which contains the latest tax and financial information, which we trust you will find useful. As a result there may be a number of changes that will affect you so please fee… Continue Reading

Notice to Landlords – Flat Conversion Allowances, Energy-Savings Allowances

The special tax relief for flats over shops comes to an end on 5 April 2013. It may be renewed in next weeks budget but if the work is contacted for before 5 April, it can be claimed. The main conditions to obtain relief are: 1. Maximum number of storeys- 4; 2. The flats must have been unoccupied or just used for storage for at least a year before conversion work starts; 3. The flats must be l… Continue Reading

Residence New Rules From 6TH APRIL

The Statutory Residence Test comes into effect on 6th April. For non UK residents and those planning to be non resident now is the time to plan for the new regime. The new rules are summarised as follows: You are automatically UK resident if: 1. If you spend more than 183 days or more in the UK  or 2. You have a home in the UK for at least 90 days, you are present in that home for at least 30 separ… Continue Reading

VAT returns

On 9 January HMRC launched a VAT Outstanding Returns Campaign which is aimed at businesses who are behind with their VAT returns. If the outstanding returns are not filed by 28 February, then these businesses are under threat of  being  targeted for detailed enquiries which could result in penalties. That leaves eight days to file any outstanding VAT returns.… Continue Reading

The Chancellor’s 2012 Autumn Statement

Tuchbands, North London Accountants, highlights the main announcements on the  Autumn Statement 2012   This summary contains a host of Autumn Statement changes that may affect you, your business and your tax planning. Please contact us for more help and advice with your particular circumstances.  At a glance

• Income tax personal allowances to increase
• Reduction in annual and l

… Continue Reading

Business Records Check

Important Message from Tuchbands- Leading North London Accountants This starts with a letter from HMRC writing to say that they intend to make a phone call to ask some questions concerning the record keeping.  At the end of the call they then decide whether the answers given show that the records are adequate.  If they have any concerns then they will arrange a visit. They follow a r… Continue Reading

Residential Property held by a Company

There are government proposals in the pipeline for charging 15% SDLT on residential properties valued at £2m or more where the property is  owned by a company. In addition an annual charge starting at £15,000 per annum is proposed. This is proposed to come into effect in April 2013. There are, fortunately exemptions for property development companies. It seems best to keep e… Continue Reading