Pension contribution is being used more and more as part of tax planning. Tax strategies involving pension can be highly effective in reducing your tax liability and are easy to implement. Higher rate and additional rate taxpayers will both benefit from these strategies, but to varying degrees. If you happen …
Should I set up a limited company or operate as a sole trader? This is one of the first questions that you will encounter when embarking on the journey of becoming an entrepreneur. This article will help you to decide. Perceived benefits of limited companies There are several benefits …
National Insurance rate again is the key point affecting many small business owners and self-employed. Key changes are: Class 2 NIC is abolished. It is £3.45 per week flat rate currently for any self-employed operating as a sole trader who makes more than £12,570 in profit annually. This takes effect …
National Insurance Contribution (NIC) is the hot topic of this Spring Statement. NIC rates increase, but NIC threshold also increases. NIC rates increase by 1.25% cross the board. NIC changes Current From April 2022 Employee NI- Primary threshold to upper earnings limit (from £12,570 to £50,270) 12% 13.25% Above …
At the beginning of each tax year, taxpayers will receive a letter from HMRC telling you the tax code for this tax year. A few common ones for the current tax year are: 1257L – you will get the standard tax-free allowance, which is £12,570 0T – no tax-free …
HMRC require that all companies’ financial years finish on the last day of the month in which they are incorporated. HMRC also want any one corporation tax return to cover no more than 365 days. This means companies must submit one return covering the twelve months to the anniversary of …
You complete a Self-Assessment tax return, submit it, then a few weeks later you receive a letter from HMRC asking you to pay a much higher amount than the tax liability shown on your tax return. Why? In short, HMRC wants you to pay your tax liability for the …
Many companies offer Tax Advantaged incentive schemes to employees as part of long-term incentive plan. These include: Share Incentive Plans (SIP) Save As You Earn (SAYE) Company Share Option Plans (CSOP) Enterprise Management Incentives (EMI) Share Incentive Plans (SIP) Employees can buy their employer companies’ shares with their …
When exiting a limited company, entrepreneurs need to extract retained profit from their company. Normally, profit taken from a company would be treated as dividends, and incur the corresponding income tax liability. However, a much-preferred option as we’ll see is to qualify for entrepreneurs’ relief and to treat profit as …
If you sell a residential property in the UK after 6 April 2020 and have capital gains tax (CGT) due, you must report the gain and pay the CGT within 30 calendar days of selling the property. Failing to report and pay, you will be subject to late filing and …