NIC Changes

Employees and the self-employed will not pay national insurance contributions (NIC) on the first £9,500 of earnings from 2020/21, a significant increase from the £8,632 limit in 2019/20. Note that employers will be required to pay 13.8% on earnings over £169 per week, £8,788 per annum. The employment allowance that can be set against employers […]

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No change to personal allowance or income tax rates

Personal Allowance The personal allowance for 2020/21 is frozen at £12,500, the same as in 2019/20. The higher rate tax threshold is also frozen at £50,000. Income Tax Rates The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over […]

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More Rates relief for Small businesses

There has again been much lobbying from the small business sector to reduce business rates to enable traditional retailers in particular to compete with internet traders. The Chancellor announced a long term review of the future of business rates, but in the meantime there are some very welcome measures to assist small businesses. The 100% […]

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Quickbooks and Xero News

Both Quickbooks and Xero have just released (or are about to release) purchase invoice/receipt capture software, within their systems (Quickbooks version is called ‘Receipt capture’ Xero’s is called ‘Hubdoc’). These work by taking pictures (with smart phone or scanning in/uploading to the software), the software then optically recognises the supplier name, date, amount, VAT, description […]

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Things to be aware of on the tax front at the moment

Budget day is 11th March. The rumours are circulating about what the new Chancellor will announce in his budget and the feeling is that there will be some sort of tax increases on the horizon. Given that the current Government said they wouldn’t increase Income Tax, VAT or National Insurance the speculation is that Capital […]

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Is flexible working the key to success?

A big challenge for many businesses – particularly those in rural areas – is how to recruit and retain the best staff. Here at Hudson LM, we have adopted an innovative flexible working approach for our staff, which was first established in America and has revolutionised how we work. The Results Only Work Environment (ROWE) […]

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Changes to our team this Spring

We start with some news of changes in the office. Firstly we said goodbye to Julia during February as she starts her retirement and goes off to enjoy herself in her new camper van. Many of you will have spoken to or met Julia in person and we’ll miss her organisation and cheerful nature. This […]

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Buy new equipment before 6 April

If you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA). The AIA provides a 100% tax write-off for equipment used in your business. This tax relief extends to fixtures and fittings […]

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Don’t lose your 2019/20 allowances

ISA Allowance Your maximum annual investment in ISAs for 2019/20 is £20,000. Your investment needs to be made before 6 April 2020. In addition, have you thought about investing for your children or grandchildren by setting up a Junior ISA? In the 2019/20 tax year, you can invest £4,368 into a Junior ISA for any […]

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Pension Planning before the end of the tax year

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer. Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the […]

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