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[30 Nov 2015 | Comments Off on Dividend Tax 2016/17 | ]
Dividend Tax 2016/17

Significant changes to the taxation of dividends will take effect from 6 April 2016
Planned changes:

10% notional tax credit being scrapped
Introducing a tax free Dividend Allowance of £5,000
Then, dividends tax rates will be set at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.

In short, this means that the majority of owners of small limited companies, who take a small salary and large dividend, will see a significant increase in their personal tax bill. With the exception of the first £5,000 tax free band, …

headline, on the bridge, one offs »

[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 …

one offs »

[11 Nov 2015 | Comments Off on Son of IR35 | ]
Son of IR35

If you work as a contractor for more than one month are you an employee?
We have been alerted to a new IPSE campaign concerning possible drastic changes in store for owners of small limted companies. Here’s their 10 Nov 2015 letter including all their web links. Start with this Guardian article to understand the full scope of this horror. This is possibly so severe, that it’s one of those few occasions when we agree that writing to your MP is a good next step.

Dear Member
IPSE are hugely worried by reports …

one offs »

[22 Sep 2015 | Comments Off on Special Offers | ]

Runs from 1 Oct 2016 to 31 Oct 2016 only

If you sign up to our services between 1 Oct 2016 and 31 Oct 2016 we’ll give you a deal that you won’t want to miss! Three months free. Yes! Sign up for a year, and we’ll effectively give you a 25% discount on your first year.
Take a look here.

one offs »

[12 Jun 2015 | Comments Off on The Pensions Regulator Letter | ]
The Pensions Regulator Letter

Proactive is not authorised to give pensions advice, and the comments here are a guide to complying with new legislation. It is not a guide to pensions!
The Government decided in about 2012 to shake up UK pension provision, and as a result, a lot of smaller businesses have to comply with the new laws from 2015 or 2016. It appears that they launched a campaign in Spring 2015, sending letters like this example, to the smallest of UK employers.

Oddly, if the new legislation does not apply to you, then you …

one offs »

[1 Feb 2015 | No Comment | ]
Invoicing foreign clients and charging in foreign currencies

All invoices must show the same information as your letter headed paper, business address, registered number and that sort of thing (to comply with The Companies Act 2006). The following rules also apply:

The date of the invoice must be shown.
Invoices must be sequentially numbered. The numbering must be purely numeric.
The word “Invoice” must appear and be abundantly clear.
The name and address of the person being invoiced must appear. This is the name of your customer and not necessarily the name of the individual in their head office. If your customer …

getting things done, one offs »

[12 Dec 2014 | No Comment | ]

VAT MOSS applies to all businesses whether or not they are currently VAT registered! Do you sell (or are you planning to sell) digital products (eServices) over the web?
From 1 Jan 2015 the rules change and as a result, some non-VAT registered business will need to review their business methods and may be forced to register for VAT. Businesses which are already VAT registered may need to collect more data from their customers and charge a different VAT rate depending on where their customer lives.

The rules were developed to make …

one offs »

[30 Jul 2014 | No Comment | ]
HMRC on strike

Is it worth phoning HMRC? Do the staff in the call centres actually have any expertise? If you’re promised a return call, do they actually call you back? In our experience the answer to all these questions is an emphatic “no”!
Today, staff at HMRC are going on strike (for three days) to protest about staffing levels. We have long known that things are not getting done. We gave up phoning HMRC in 2006 and started a process of sending them everything in writing. That way, if there is ever any …

one offs »

[24 Jun 2014 | No Comment | ]
Correcting mistakes

“One of my invoices to my customer is wrong. What should I do?”
In cases like this the easiest solution is to reverse the invoice using a credit note, and then issue a completely new invoice (and hopefully get it absolutely right). A credit note is basically a negative invoice. It should replicate the incorrect invoice in every respect, except that the heading is “Credit Note” and not “Invoice” and all the figures should be preceded by a minus sign. The date on the Credit Note is normally the date you …

one offs »

[8 Nov 2013 | No Comment | ]
Should I dissolve my company or put it on ice?

Hopefully, running your own business has been a good experience. When business comes to an end, we know that the double barrelled question “should I dissolve my company or put it on ice” is often asked.
If you have finished with the company and no longer need it, then dissolve it. Keeping it will only add to your costs. A simple dissolution guide is here.
It is not possible to ever make a traded company become truly dormant again. There will always be things to do. A dormant company is one which …