Cooper Curtis Accountants Comment & Guide to the March 2016 Budget

With the Budget taking place yesterday, there were a number of significant changes announced and confirmed coming in from April....

Some of these were expected, such as the Travel and Subsistence tax relief restriction for those employed via an employment intermediary. We expect the re-percussion of this will be a skills shortage for workers unwilling to travel. 

A surprising announcement was a drop in capital gains tax to 10% and 20%. This is the chancellor's move to encourage enterprise investments. But, this does not apply to residential properties or carried interest, which remain at the 18% & 28% tax rates. 

We knew the new dividend tax regime from April was going ahead so this comes as no surprise. We have been busy reviewing our clients' records over the past few weeks to seek out any tax saving opportunities. 

Read our Guide to the Budget Summary here

If you have any concerns about any of the announcements made in the recent Budget and would like a confidential chat to an advisor, please call 0845 303 1144 now or email info@coopercurtis.co.uk 

 

 

Update on abolishment of tax relief on Travel & Subsistence via Employment Intermediaries

HMRC have now stopped accepting comments to the proposed removal of home to work travel and subsistence relief where an individual is engaged through a PSC or Umbrella Company and under Supervision, Direction or Control (SDC). Contracts which fall within IR35 will no longer be eligible to apply for tax relief for travel and subsistence on their ordinary commute.

Under proposed rules, HMRC will look at the extent to which SDC applies and whether in fact they should be on the payroll.

In our latest blog, we explore what HMRC means by 'Supervision,  Direction and Control'...

Supervision

Is there someone overseeing their work? And not only that they are doing it, but this is done to a certain standard?

Direction

Is someone making sure the work is done a certain way? Do they offer instruction, advice and guidance on how it should be done?

Control

Does someone dictate what work is done and how to go about doing it? Does someone have the power to move you on to a different task?

 

Any changes will be confirmed in the Autumn statement, and will come into effect from April 2016. If you are unsure whether you will be affected by these changes, we would recommend that you seek professional advice sooner rather than later. 

We would also recommend that you have PAYE investigation protection in place should HMRC open an enquiry into your tax and National Insurance affairs which will cover you for professional fees incurred whilst bringing the enquiry to a closure.

We can offer this from as little as a £5 per month offering you peace of mind. 

 

if you are unsure as to what the proposed changes will mean for you, please contact Brian or Caroline for further information on 0845 303 1144 or email info@coopercurtis.co.uk 

Knowledge - Support - Succeed

Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.

Cooper Curtis Accountants at the Recruitment Agency Expo North

We were thrilled to showcase our services last Wednesday and Thursday along with a host of other leading suppliers to the recruitment industry.

 As well as meeting influential people whom we are excited to work with in the future, we managed to catch some seminars and learn what's new in the recruitment industry such as progressions in social media for recruiters, and important legislative changes coming into force. 

For those who participated in our champagne raffle we will be announcing the winner shortly. 

If you couldn't make it to the expo, or would like to hear more about our services adding value to the recruitment industry, please call 0845 303 1144 or drop us an email at info@coopercurtis.co.uk. 

Brian and Caroline at the Recruitment Agency Expo North 30th Sept and 1st Oct 2015

Brian and Caroline at the Recruitment Agency Expo North 30th Sept and 1st Oct 2015


Cooper Curtis provide an Accounting Advisory service helping grow successful recruitment companies and agencies. 

To find out how we can work with you for a better business call 0845 303 1144 or email info@coopercurtis.co.uk. 


Annual Investment Allowance - What's in it for your business?

The Government announced in the Budget that the AIA or 'Annual Investment Allowance' will be falling to £200,000 as of 1 January 2016 from a generous half a million in the current year.

We view this as a positive announcement for businesses and believe it will put a stop to 'panic buying' businesses looking to make use of the allowance before it's taken away. 

Any plant and machinery expenditure covered by 'AIA' gives a full deduction against profits whether you are Self Employed, a Limited company or Partnership. Anything after this, will be claimed under capital allowances as a yearly deduction (currently 18 or 8%).  

The 'AIA' Allowance includes business expenditure such as; 

  • Fire Alarm and CCTV units
  • Computer Hardware
  • Vans used in business (Not cars) 
  • Alterations to a building to install plant & machinery
  • Electric shutters (not manually operated)
  • Moveable flooring & walls
  • Fitted Kitchens & Bathroom Suites
  • Integral Features - Lifts, Stairs, Air conditioning and air cooling systems
  • Hot and cold water systems but not toilet and kitchen facilities
  • Electric systems including lighting systems

Examples of non-qualifying expenditure for 'AIA' include;

  • Cars
  • Anything on lease
  • Buildings including doors, doors, manual shutters, walls & floors
  • Mains water & gas

This is not an exhaustive list. Please contact us for a more detailed list. 

For a majority of businesses, it is rare that large amounts are spent on plant and machinery, but nevertheless being aware of the type of expenditure can be offset against profits may influence important business decisions.

We would always recommend you seek professional advice when considering timing of business purchases considered a large amount. 

The 'First Year Allowance' is also available in addition to the 'AIA' for some energy efficient expenditure. 

For further information on purchases for your businesses, contact Brian or Caroline on 0845 303 1144 for a chat or email info@coopercurtis.co.uk to see how we can help you raise your game. 

Cooper Curtis Accountants have offices in Warwickshire, Birmingham and Manchester

Knowledge - Support - Succeed

Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.

 

 

Cooper Curtis Summer Budget Reflection and Highlights

There were some significant announcements following Wednesday's Summer Budget from the new non-coalition Government. It was a mixed week for companies, with the corporation tax rate falling to 18% by 2020 and a freeze on the Annual Investment Allowance at £200,000 encouraging business spending.

One of the biggest reforms announced in the budget will affect family companies paying themselves and spouses dividends up to the basic rate band. From April 2016, this may no longer be as tax advantageous with the abolishment of the notional tax credit and a dividend tax free allowance of only £5,000. We will wait to see how this will work once the draft legislation is released.

Buy to let landlords with large property portfolios will be stung with the restriction of higher rate tax relief on interest paid on mortgages. However, rent a room relief has been encouraged with a tax free amount rising from £4,250 to £7,500 in April 2016.

As expected, for high earners with income over £150,000, pension tax relief will be restricted and the Chancellor's war on Non-Domiciles means from 2017 they can no longer escape Inheritance Tax on UK held properties. 

Take a moment to read our full Budget Summary here

 

If you are concerned about anything covered in our Budget Summary or would like any further information, please contact Brian or Caroline on 0845 303 1144 or email info@coopercurtis.co.uk. 

Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.