Pension Strategy

Cambridge dictionary defines “Pension” as – an amount of money paid regularly by the government or a private company to a person who does not work any more because they are too old or have become ill. Ignoring the illness & old age, basically, Pension should be treated as an Income for doing nothing ! If so, why not have a Pension strategy which aligns with your Business strategy? With the introduction of Auto Enrolment for Pensions, the UK Government […]

Tax Planning

“Money” is the thing which keeps the world go around. Everyone, including Individuals, Corporations try their best to have their share of your money all the time. Examples are, Landlords / Mortage companies take – 30% – 40% of your Income Council Tax – take 5% of your Income Car Hire / Insurance – take 18% of your Income Iphones […]

Profit Extraction

For Business owners “Extraction of Profit” from the family owned Ltd company has always been an important discussion with their Accountants. The opportunities are in Using Personal Car for Business and utilising the Generous Mileage Allowance offered by HMRC. Taking Life Cover as “Relevant Life” and writing it into a Trust for your beneficiary & still utilising Corporation Tax Deduction […]

Ready for Self Assessment Tax returns?

Yes, the time has come again. Are you ready? Ok, first of all, you need to know what is that you need to have before your Tax return can be submitted Online (the paper submission deadline was 31 Oct 2017) to HMRC. Either you are a Sole Trader, Partnership or a Limited Company, the focus should be on the Owner, […]

Budget 2017

Now that Mr. Hammond has been speaking about the Budget for 2017, the main points are given below 1. Class 4 – NIC for Self Employed to increase from 9% to 10% in April 2018 & to 11% in April 2019 2. Class 2 – NIC will be axed from April 2018 3. Tax FREE Dividends – to be reduced […]

How to deal with Living Wage?

Living wage in UK is currently set at £7.20 per hour and set to rise to £7.50 per hour from April 2017, a rise of 4.16%. This is an issue for Small Businesses in the UK. For a Service Based Businesses, this adds to the overheads.  Is the Government pushing such overheads onto Small Businesses just to maintain the standard […]

Corporation Tax

Corporation Tax is a Business Tax payable on the profits of a Limited Company.  When it comes to Family Managed Businesses, Corporation Tax can be reduced by the following Director Salaries Mileage allowances for Directors Director Pension contributions Director Bonuses Director Use of Home as office Director Life Insurance The above are expenses of the Limited Company which are Tax […]

What after Self Assessment?

Now that Self Assessment Tax returns are out of the way, what should Businesses focus on? The focus should be on 5th April 2017. what major Tax strategies are you focusing on? Is it to be treated for 2016-17 Tax year? Do we need to declare Dividends? Do we need to crystallize any capital gains? Are we bringing all major […]