The Scottish Parliament has proposed that the threshold for 40% tax will be held at £43,000 for 2017-18. In the rest of the UK, this 40% threshold will increase to £45,000 as shown in the table below. 2017-18 Scotland Rest of UK Personal allowance tax free 11,500 11,500 20% tax…
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Businesses who use the VAT flat-rate scheme (FRS) can't reclaim VAT on most purchases, but they can keep a small slice of the VAT they charge to customers. If the business has limited input costs, the VAT retained will more than compensate for the input VAT they can't reclaim. From…
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When you register your business for VAT, you can reclaim the VAT you paid on stock or assets acquired in the four years before the date of registration, if you still hold those assets on the registration day. You can also reclaim VAT incurred on services purchased for business purposes…
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It's good practice to step back and review your business at least once a year. Ask yourself where you expect your sales to come from in the next twelve months. If your projected annual turnover is less than £81,000 (excluding VAT), you may want to consider cancelling your registration. To…
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Where a company owns, or partly owns, residential property worth £500,000 or more, it must pay the Annual Tax on Enveloped Dwellings (ATED) charge each year in April or apply for relief from that charge. The amount due for 2017-18 varies from £3,500, for properties worth up to £1m, to…
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Child benefit is paid to parents of young children in the UK, if they claim it. Some higher earning parents don't claim the benefit, as they know it will be clawed-back as a tax charge. However, not claiming child benefit can disadvantage both the parent and the child in the…
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Individual landlords will be expected to use a special form of the cash basis from 6 April 2017, where their annual rental income does not exceed £150,000. If you don't want to use this cash basis for your property business, you will have to opt out by checking a box…
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Reporting income and expenses under MTD will be easier for businesses who draw up their accounts using the cash basis. This is a basic form of accounting which suits certain small unincorporated businesses. Currently, in order to use the cash basis you must be a trading business, not a limited…
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The government is determined to push ahead with Making Tax Digital (MTD), which will require businesses and landlords to use accounting software to make quarterly reports of income and expenses to HMRC. This reporting will apply for accounting periods starting on and after: - 6 April 2018 for businesses &…
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