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[16 Nov 2015 | Comments Off on Buy To Let – new tax rules | ]
Buy To Let – new tax rules

Two new sets of rules come into force over the next few years.
No more “10% Wear and Tear” allowance
The allowance is being abolished. Starting on 6 Apr 2016, landlords who rent out furnished accommodation will no longer be able to claim the flat rate 10% allowance every year, and instead will be permitted only to claim the actual costs of like-for-like renewals and replacements.
Restriction of loan interest relief
Over a three year period, starting on 6 Apr 2017, the amount of tax relief you can claim for loan interest paid, will …

on the bridge »

[19 Sep 2014 | No Comment | ]
A return to Folkestone Central

You’ll be pleased to hear that (after a break of a few years) our Folkestone office has reopened! We are back in Ingles Manor, but in a bigger office than before, and we not only have space for our current staff, we also have a little room to grow.
This additional facility also signifies a move away from the use of freelance bookkeepers to employed bookkeepers, and that in turn should lead to a speedier service for everybody. We are currently advertising for two more staff whose duties will be a …

on the bridge »

[26 May 2012 | No Comment | ]
Recession Proofing

Firstly, there is probably no single recipe which will enable a business to become totally recession proof. And, even though our line of business is one of life’s certainties (the two certainties being death and taxes) we are not immune to recessions. So, we are taking steps this year to minimise the risk of another recession having an adverse affect on our business and that means consolidating our three operational wings (accounts and bookkeeping and payroll) under one banner.
Secondly, you should adjust your business plan now, to minimise the risks …

on the bridge »

[31 Mar 2012 | No Comment | ]
Director shareholder payments 2012/13

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

on the bridge »

[3 Mar 2012 | No Comment | ]
The age of Transparency

There have been a few discussions recently in the press, about this sector or that sector aiming for greater transparency. We were introduced to the idea of transparency, properly, during a visit to Oxford University in 2009. Until then, we only had a fledgling idea on an in-house project which we were calling “openness”.

The transparency report on the Proactive web site http://www.proactive.uk.net

Although businesses are generally slow to take up this new concept (and to date the initiative has been discussed mainly amongst central and local government) we are aiming to …

on the bridge »

[31 Mar 2011 | No Comment | ]
Director shareholder payments 2011/12

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

on the bridge »

[31 Mar 2010 | No Comment | ]

There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

on the bridge »

[2 Mar 2010 | One Comment | ]

You can link directly to this article using the short URL http://bit.ly/c2Uw5g

Often there’s little logic in tax law

If you ever look closely at your accounts and tax return (you do look closely, don’t you?) you may notice that they include depreciation and/or capital allowances. And you may notice that the bottom line figure for depreciation and/or capital allowances is usually different.
That’s because depreciation is calculated based on established accounting practices, and capital allowances are based on the rules set out in the Taxes Acts. And no matter which method you …

on the bridge »

[9 Dec 2009 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/8QfLLj

Claiming tax relief on the big things

All businesses can claim tax relief on business expenses. That can include items that you bought before the business started! Do you have a laptop, and any other IT kit? Is your office equipped with a desk, a chair and a book case? Here’s a typical list of things that you might be introducing. There may be things on this list that you should ignore, and there may be other special things (in …

on the bridge »

[17 Sep 2009 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/n4at8

Will I pay tax twice?

For tax purposes, all of your income in a single tax year is lumped together and the tax calculation is a single exercise. Nobody should have to pay tax twice.
However, with National Insurance Contributions, the system is peculiar and there is often a risk of paying too much.
Having said that, both the Revenue and the Contributions Agency have been know to make mistakes, lots of mistakes. So it’s worthwhile having an accountant check the position.
If …