Reduction in the Dividend Allowance

  The Dividend Allowance will be reduced from £5,000 to £2,000 from April 2018. The government expect that even with the reduction in the Dividend Allowance to £2,000, 80% of ‘general investors’ will pay no tax on their dividend income. However, the reduction in the allowance will affect family company shareholders who take dividends in...

Class 4 National Insurance contributions (NICs)

It had already been announced in the 2016 Budget that Class 2 NICs will be abolished from April 2018. The government will now also legislate to increase the main rate of Class 4 NICs from 9% to 10% with effect from 6 April 2018 and from 10% to 11% with effect from 6 April 2019....

SCOTTISH INCOME TAX RATES AND THRESHOLDS

The Scottish Government has the devolved power to set certain tax rates, principally income tax and land transaction tax (equivalent to SDLT in England and Wales). Although it proposes to freeze the basic, higher and additional rates at 20%, 40% and 45% respectively, the thresholds will not be the same as the rest of the...

NEW GOVERNMENT SAVINGS SCHEME STARTS IN APRIL 2017

From April 2017,adults under the age of 40 will be able to open a Lifetime ISA (LISA) and pay in up to £4,000 each tax year. They will be able to continue making contributions up to the age of 50. The government will add a 25% bonus to these contributions. This means that individuals who...

DO YOU HAVE ENOUGH SHARES TO QUALIFY FOR CGT ENTREPRENEURS’ RELIEF?

Entrepreneurs’ Relief reduces the rate of CGT to 10% on the first £10 million of gains on the disposal of qualifying business assets. This would include sole traders disposing of their business and partners disposing of their interest in a partnership carrying on a business. With many businesses operating as limited companies these days it...

Infographic: New Car Tax Rules, April 2017

Our Infographic below outlines in easy to understand  terms the changes to new car tax rules from April 2017…  

Employer Provided Cars

The scale of charges for working out the taxable benefit for an employee who has use of an employer provided car are now announced well in advance. Most cars are taxed by reference to bands of CO2  emissions. There is a 3% diesel supplement. The maximum charge is capped at 37% of the list price...

National Living Wage and National Minimum Wage (NMW) rates

Following the recommendations of the independent Low Pay Commission, the government will increase the National Living Wage from £7.20 to £7.50 from April 2017.   The government will also accept their recommendations to increase the NMW rates from April 2017 for: • 21 to 24 year olds from £6.95 to £7.05 per hour • 18...

Changes to the VAT Flat Rate Scheme

An anti-avoidance measure will be included within the Flat Rate Scheme. A new 16.5% rate will apply from 1 April 2017 for businesses with limited costs, such as many labour-only businesses, using the Flat Rate Scheme. Businesses using the scheme, or considering joining the scheme, will need to decide if they are a ‘limited cost...

HAVE YOU DECLARED ALL OF YOUR CREDIT CARD SALES?

Where credit card sales have been omitted from business takings, HMRC are encouraging taxpayers to come forward and make a disclosure of the income that has been omitted to avoid incurring interest and penalties on top of the unpaid tax. As you may be aware HMRC now receive information from third parties such as banks...