Blog

When do NIC contributions stop

You are required to make National Insurance Contributions on your earnings, whether employed or self-employed, until you reach the State Retirement Age. The only exception is if you qualify for exemption from contributions if your salary or business profits are below a certain minimum amount. For 2017-18 these lower limits are: Below £157 a week…
Read more

Need help joining the digital age

Computers are not everyone’s cup of tea. In fact, there are very few of us who can declare with some confidence that we are computer literate. Unfortunately, there does seem to be a drive to increase their effective use in business and the offices of HMRC. Gone are the days when HMRC’s offices were populated…
Read more

National Insurance exemption

Employers, or more specifically, the persons in charge of processing their payroll, are hopefully checking the box to claim the National Insurance Employment Allowance (EA)? The EA reduces the employers’ (secondary) Class 1 NIC bill. If your employers’ NIC charge is normally more than £3,000, then this is as good as £3,000 additional cash in…
Read more

Making the most of opportunity

There are a number of ways that director shareholders of private companies can withdraw funds from their businesses. We have listed below a number of options, the list is not exhaustive, but the points do provide insight into the opportunities that current tax law allows incorporated businesses. Director shareholders can provide themselves with up to…
Read more

Oh what a night

It is fair to conclude that Mrs May’s ambitions suffered a set-back Thursday last week. She is now attempting to manage a minority government, and Brexit apart, there are other outstanding legislative matters that demand her attention. One is the remainder of the Finance Bill 2017, that was placed in abeyance in order to accommodate…
Read more

Recovery of VAT after deregistration

Last week we discussed in this blog, how to recover VAT paid prior to registering for VAT. This week we are going to sketch out the reverse position: how to reclaim VAT after you have deregistered. According to HMRC, you can make a claim for relief from VAT charged to you on certain services (not…
Read more

The hidden tax on car benefits for employers

Businesses that provide employees with taxable benefits: company cars, health insurance and so on, will be aware that a benefit in kind charge is added to the employee’s income and subjected to an income tax charge the same as their salary. Employers will also be aware that the cumulative sum of all the taxable benefits…
Read more

Tax Diary June/July 2017

1 June 2017 - Due date for Corporation Tax due for the year ended 31 August 2016. 19 June 2017 - PAYE and NIC deductions due for month ended 5 June 2017. (If you pay your tax electronically the due date is 22 June 2017.) 19 June 2017 - Filing deadline for the CIS300 monthly…
Read more

Claim back pre-registration VAT

It is possible to reclaim VAT you have paid on any business purchases before you have subsequently registered for VAT. In fact, once you have registered your business for VAT the first thing you should consider is the possibility of reclaiming input tax on purchases of goods and services prior to registration. This article summarises…
Read more

When does a hobby become a trade

An example may illustrate the answer to this question. Harry updates his iPad and decides to sell his old one – he does not use the iPad for his employment or any business, it’s used purely for recreational purposes. He sets up an account on eBay and manages to sell for a reasonable price. Encouraged,…
Read more