What rate of tax would you pay on an additional £1 of earnings? If your annual income is between £41,865 and £150,000 you may think the tax rate would be 40%, but the peculiarities of the UK tax system mean you could pay much more.
To start with earned income above the 40% threshold carries a national insurance charge (NICs) of 2% so for every £1 you earn above £41,865 (for 2014/15) you will pay 42% in tax and NICs.
Child benefit is withdrawn from the highest earner in the…
Read MoreDo you operate your business as an LLP? If you do, you need to be aware of the change in tax treatment of certain LLP members from 6 April 2014. Members who meet all of these conditions will be taxed as employees:
A. works for the LLP as an LLP member and at least 80% of the amounts paid to him for that work are disguised salary;
B. does not have significant influence over the affairs of the whole of the LLP; and
C. is not required to contribute funds to…
Read MoreThe corporation tax rates for small and large companies will be aligned at 20% from April 2015. This will remove the need for the associated companies rule and the marginal rate of corporation tax will disappear. The rates for the three financial to 31 March 2016 have been announced as:
| Year beginning 1 April: | 2013 | 2014 | 2015 |
Read More
New tax allowance changes set to affect pension pots.Monday, February 24, 2014
Pension holders are being urged to seek advice on their pensions as radical changes to tax allowance are set to take effect. Reductions to the threshold available for relieved annual allowance and lifetime allowance for pensions will take place from the 6th April 2014, and are anticipated to impact over 300,000 UK pension savers. The annual allowance for pension tax savings will be reduced from £50,000 to £40,000 in the coming weeks, with any sum over the new £40,000 limit liable to taxation at the rate of 40 per cent. The… Read MoreOnline traders urged to act as crackdown on unpaid tax continuesSunday, February 2, 2014
People who sell goods online are being urged to seek advice on paying tax on their profits ahead of imminent crackdowns by HMRC. Since September 2012 online trading sites, such as eBay and Amazon, have passed on tens of thousands of members details to HMRC following a large-scale crackdown on traders who have failed to register their income. South Wales Chartered Certified Accountants Morgan Hemp & Company, are urging online traders to act quickly and register themselves for tax before the next stage of the HMRC crackdown where traders who… Read MoreBusinesses urged to act on tax relief ahead of looming deadlineMonday, January 13, 2014
Commercial property owners are being urged to seek advice on vital tax relief that could save their business thousands before it is too late. Reforms outlined in the Finance Bill 2012 take effect in April and will dramatically change the qualifying criteria for businesses to make claim to capital allowances on properties that they own or have significantly improved. Most businesses and accountants claim capital allowances for computers, vehicles and tools of the trade, however, many do not recognise that these same allowances also apply to central heating, lighting and… Read MoreSouth Wales gift firm strengthens with acquisitionFriday, November 15, 2013
A leading UK gift company has been acquired by a South Wales based wholesaler in a deal that has secured jobs and paved the way for expansion. Swansea based Something Different Wholesale Ltd has acquired Smiley Signs, securing five agent jobs and strengthening the wholesale businesses online presence and reputation as a leading UK figure in the supply of gifts and novelty items to trade customers worldwide. Both businesses will continue to operate as separate entities but will share Something Different’s large warehouse and trade outlet on Swansea Enterprise Park. With… Read More |