No change in 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 £150,000. There had been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends […]

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Personal Allowance and higher rate limit increased early

The Government’s manifesto pledge back in 2015 was that the personal allowance would rise to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the Chancellor has decided to bring forward these increases one year early from 2019/20, taking an estimated 1 million taxpayers out of higher rate tax. Note that up […]

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Gifts to employees and Charities

GIFTS OUT OF INCOME ARE NOT TAKEN INTO ACCOUNT FOR IHT A more generous inheritance tax exemption applies where the donor can prove that he or she is not transferring capital but is making gifts out of their income. There are detailed conditions for this exemption to apply requiring records to be kept of income […]

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The IHT annual exemption – Use it or lose it!

Although not particularly generous at £3,000 per donor per annum if this annual IHT exemption is not used by 5 April it is lost, although it is possible to carry the allowance forward one year if unused. This means that if the annual allowance for 2017/18 was not used an individual may make gifts of […]

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Tax update: Budget 2017

There was nothing to get particularly excited about in November’s budget except for the abolition of stamp duty on homes up to £300,000, for first time buyers. A few other items of note; The VAT registration threshold of £85,000 is frozen – this could have ramifications for businesses trading just below this threshold. The National […]

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Our technical goal

We are working hard to move all our clients onto online book keeping, partly driven by HMRC’s Making Tax Digital plans for 2018. Our mission is to convert all clients onto our chosen online book keeping software; Quickbooks Online. We aim to do this by December 2018. Why are we doing this? • Online ‘cloud’ […]

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HMRC and Making Tax Digital (MTD): The biggest change to tax in 20 years!

In Spring 2018 the Government are introducing a radical change to our current tax system. They will require businesses and landlords to submit quarterly income and expenditure accounts to HMRC. Sole traders, partnerships and landlords will be the first to be affected. We will be contacting all clients in due course regarding the appropriate action […]

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Project examples

Here are some project examples of work done in 2014/15. Farm succession planning We helped a client to plan for the handover of their farm business by instigating a partnership agreement and reviewing its contents to ensure all parties were protected as far as possible from Inheritance Tax and Capital Tax. VAT planning We helped […]

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Workplace pensions atomatic enrolment

Work place pensions – Automatic enrolment

If you employ people you will soon have to set up your own workplace pension for your employees and we can help you do this. A recent change in the law means that all employers will be required to set up a pension scheme for their eligible staff and contribute into the scheme. Here’s how […]

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Top ten tax tips

Top ten tax tips from Louise Hudson

I pride myself on providing simple, straightforward advice that helps you save money on your tax. Here are my top ten tips on how to make sure you are claiming everything you should be. 1:      If your spouse earns less than £11,500 per year (correct as at April 17) and helps out in your […]

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