Cooper Curtis gives the low-down on the National Living Wage

From 1 April 2016 employees that are 25 years old and over are legally entitled to receive a'National Living wage' of £7.20 per hour, seeing a 50p increase. 

This new minimum pay rate is set to support the government’s vision of a 'higher wage, lower welfare, lower tax society.'

Those employers that don't comply will risk being named and shamed and tough penalties of up to 200% of arrears and a maximum of £20,000 per worker. 

We would recommend you take action before this date and review whether or not you should be making any changes to your payroll. Make sure you also inform your employees of any changes in pay. 

Other changes from April 2016

The personal allowance is set to increase to £11,000 from April removing more lower paid workers out of the tax bracket. 

For employees under 25, the 'National Minimum Wage' will still apply, the rates will be rising to; 

  • £6.70 for 21s and over
  • £5.30 for 18 to 20-year-olds
  • £3.87 for under 18s
  • £3.30 for apprentices (the rate applies to all apprentices in year 1 of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship)

For further information on any topics covered in our blogs, or if you would like to speak to us about our pro-active Accountancy & Tax services, contact Brian or Caroline on 0845 303 1144 for a chat or email info@coopercurtis.co.uk. 

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.

Tax Return Checklist

As the tax return season is upon us, we have compiled a checklist for you to use when gathering information...

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.

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.