News from your Accountants in Harrogate & Leeds

Keep yourself up-to-date on the latest accountancy news and information with our useful articles.

Storm Damage

February 3rd 2017

Costs that businesses incur to clean up after the recent storms, that affected the north and east coasts in particular, need to meet the usual qualifying criteria that they are incurred “wholly and exclusively” for business purposes in order to be a legitimate write-off for tax purposes.

Considering investing in plant or equipment?

February 3rd 2017

Business owners may be considering their options for investment in new equipment especially if their trading year end is March, as is often the case. There are a number of considerations:

Director disqualified for seven years

February 3rd 2017

Directors have a responsibility to maintain, preserve and deliver records that are adequate to explain the financial position of their company. If they fail to do so, they run the risk of being disqualified from acting as a director.

Beware internet phishers

February 3rd 2017

The end of January, Self Assessment filing deadline, and the approaching tax year end seem to stimulate fraudulent activity focussing on tax issues.

Rates and allowances update

February 1st 2017

The personal allowance increases to £11,500 for the 2017/18 tax year. As for 2016/17 the allowance will be reduced by £1 for every £2 by which adjusted net income exceeds £100,000. This means that anyone with income in excess of £123,000 for 2017/18 will not receive the personal allowance.

End of the road for salary sacrifice schemes

February 1st 2017

Under a salary sacrifice arrangement, the employee gives up an amount of cash salary in return for a benefit in kind. Where the benefit is exempt from tax and National Insurance, the employee saves the tax and primary Class 1 National Insurance that would otherwise be payable on the cash salary and the employer saves the associated secondary Class 1 National Insurance.

Changes to the VAT flat rate scheme

February 1st 2017

The VAT flat rate scheme is an optional simplified accounting scheme for small businesses. The scheme is available to businesses which are eligible to be registered for VAT and whose taxable turnover (excluding VAT) in the next year will be £150,000 or less. Once in the scheme, a business can remain in it as long as its taxable turnover for the current year is not more than £230,000.

Abolition of Class 2 National Insurance contributions

February 1st 2017

Class 2 National Insurance contributions are to be abolished from 6 April 2018. Class 4 contributions are to be reformed from the same date to provide the mechanism by which the self-employed earn entitlement to the state pension and certain contributory benefits. The reform has a number of implications for the self-employed.