If a business owner makes a loss as a self-employed person, they can set off the loses against any other earnings of the same year. In effect, the business losses are moved side-ways against other earnings. However, in order for loss relief to be…
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Do you understand the numbers in your business?
Understanding the numbers in your business is crucial to success and can help you make the best decisions for the future. Even if you are happy to leave the sums and analysis to your accountant, there are certain figures that can be really useful…
When is Capital Gains Tax payable?
Notwithstanding any of the comments that follow, an individual is allowed to make tax-free capital gains of £11,700 during 2018-19. There are also a number of circumstances when a disposal does not create a taxable gain. These include: The sale of personal assets worth…
Changes to rent-a-room relief
A new test is to be added to the qualifying criteria for rent-a-room relief from April 2019. The test will require that the individual or individuals in receipt of income – the home owner(s) – will need to share occupancy of the residence in…
Points based penalties
In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations. Rather than base…
Making Tax Digital
A reminder that from April 2019, HMRC’s much vaunted Making Tax Digital (MTD) scheme will apply to certain businesses. The April 2019 launch will only apply to VAT registered traders. More specifically, MTD will apply to businesses who have a turnover above the VAT threshold…
Construction drawn into VAT reverse charge process
It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”. Their preferred method…
Director minimum salary levels 2018-19
Many director shareholders take a minimum salary and any balance of remuneration as dividends. This tends to reduce National Insurance Contributions (NIC), and in some cases Income Tax. The planning strategy is to pay a salary at a level that qualifies the director for…
Self-employed tax bills
Whether you pay Income Tax or National Insurance, the effect on your cash flow is the same. The payments are a necessary part of our obligation to fund the activities of State, but the self-employed are often surprised that their bi-annual tax payments cover…