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More than one source of self-employment

02 Nov, 2017

Any self-employed person who has more than one source of self-employment is required to pay Class 4 NICs on their total taxable profits. Class 4 NICs are paid by the self-employed as a percentage of annual taxable profits.

Class 4 NICs currently apply on assessable profits from £8,164. Between £8,164 and £45,000, NICs are payable at 9%. Any income above the Upper Profits Limit is liable to NICs at 2%.

Adjustments if you leave the VAT Flat Rate Scheme

02 Nov, 2017

Any business that has been adversely affected by the new 'limited cost trader' test that was introduced on 1 April 2017, should consider whether it will be more beneficial to leave the VAT Flat Rate Scheme (FRS) and revert to using traditional VAT accounting.

Businesses can leave the FRS at any time by notifying HMRC. To save any additional complications, this is usually done at the end of their next VAT accounting period but can be done at any time. 

Businesses must also leave the scheme:

Change to tax relief on re-mortgaged buy-to-let property?

02 Nov, 2017

HMRC’s guidance on paying income tax when you rent out a property has been updated to reflect the new restriction on tax relief for finance charges incurred since April 2017. The tax relief on finance costs (such as mortgage interest) used to buy investment properties, is being gradually restricted to the basic rate of tax. The finance costs restriction is being phased in over four years and will be fully in place from 6 April 2020.

Are your earnings approaching £100,000?

02 Nov, 2017

For high earning taxpayers the personal income tax allowance is gradually reduced by £1 for every £2 of adjusted net income over £100,000 irrespective of age. Adjusted net income is total taxable income before any personal allowances, less certain tax reliefs such as trading losses and certain charitable donations and pension contributions.

Workers unaware of pension contribution increases

31 Oct, 2017

The current total minimum contribution to a defined contribution workplace pension scheme under the automatic enrolment provisions is 2% of qualifying earnings, with a minimum of 1% coming from the employer. The remaining 1% would then ordinarily come from the worker. However, the employer may pay in more than the 1% minimum and, in that circumstance, the worker can then pay in less, or pay in nothing at all, as long as the employer puts in enough to meet the total minimum contribution.

What are integral features?

25 Oct, 2017

The term capital allowances is used to describe the allowances available to businesses to secure tax relief for certain capital expenditure. The rules that govern the purchase of capital equipment such as computer equipment, vehicles and machinery by businesses are different to those for day to day business expenses claims.

Options to set off property rental losses

25 Oct, 2017

There are different categories of property rental business such as UK property businesses, overseas property businesses, UK furnished holiday businesses and EEA furnished holiday lettings businesses.

Fine wine investment scam

25 Oct, 2017

A recent investigation by the Insolvency Service has seen two directors of a company selling fine wines disqualified for a total of 20 years. Crimson Fine Wines Limited cold-called customers and offered them the opportunity to take part in fine wine investment scheme offering high returns over periods varying from 12 months to five years.

Gazumping may become a thing of the past

25 Oct, 2017

The Communities Secretary Sajid Javid has announced plans to make the process for buying a home 'cheaper, faster and less stressful'. This includes looking at new measures to tackle gazumping where a seller accepts a higher offer from a new buyer after already accepting an offer for less money.

Could you claim a £662 tax refund?

25 Oct, 2017

The marriage allowance (MA) allows couples, where one partner does not fully utilise their personal tax allowance, to share a limited amount of the unutilised portion with their spouse. The MA is only available to married couples and those in a civil partnership.

Buying an electric or low emission car

25 Oct, 2017

Businesses can claim a 100% first-year allowance (FYA) on the purchase of certain qualifying Plant and Machinery (P&M). In certain circumstances they can also claim FYA’s on the purchase of low CO2 and electric vehicles. The generous Annual Investment Allowance (AIA) does not apply to cars.

Employment tribunal fees refund scheme launched

24 Oct, 2017

The government has launched the first phase of its refund scheme for employment tribunal fees, following the Supreme Court's judgment in July 2017 in R (on the application of Unison) v Lord Chancellor 2017 that the fees regime was unlawful. The first phase will last for about four weeks, thereafter full details of the scheme, including details of how it can be accessed, will be made available once it is fully rolled out.

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