If parents have buy-to-let properties and also have children growing into adulthood to whom they wish to leave their properties, they can make plans to put the properties into a trust to avoid their children being hit by a huge IHT bill. The general rule of thumb is, the larger …
Author: Erin He
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 …
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 want to attract investment to your company, remember HMRC offers generous tax incentive schemes to your investors – Enterprise Investment Scheme (EIS) is designed to help qualified smaller, higher-risk companies raise capital by giving tax relief to investors. An individual investor can invest up to £1,000,000 (and £2,000,000 …
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 …
The Chancellor of the Exchequer recently announced a mini holiday from stamp duty on residential properties. The holiday lasts from now until next March, and all categories of buyers will benefit including landlords, first time buyers, and buyers who have owned homes before. Let’s look at how this works and …
Individuals can earn up to £7,500 rental income per annum tax free under Rent a Room relief by letting out furnished accommodation in their own home. The £7,500 is rental income, before any expenses are deducted. If the income is below £7,500 for the year, and an individual is not …
Venture-backed companies often grant Restricted Stock Units (RSU) to its employees as a form of incentive plan to encourage employees stay with the company for longer. The shares in RSU can be restricted (with no voting rights, for example) and only become available to employees after certain conditions are met, …