If your spouse has some unused personal allowance, if you haven't done so already, you may be able to elect to transfer these and add them to your own personal allowance through an adjustment to your tax code. 

So long as;

- Both spouses are born after 6 April 1935

- One spouse has an annual income between £10,601 and £42,385

- The other spouse has income below £10,600 for the year to 5 April 2016. Or £11,000 from 6 April 2016.

If all the above apply, you should be eligible for this tax break. 

Speak to us for further information on applying for the marriage allowance. 

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. 

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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.

From April 2016, the way dividends are taxed is changing. 

The 10% notional tax credit is being scrapped and there is now a £5,000 dividend tax free allowance per tax year.

After that, the tax rates are 7.5% up to the basic rate band (£5K tax free allowance forms part of this), then 32% for higher rate and 38.1% for additional higher rate.

Note, the new 'savings allowance' from April is in addition to the dividend allowance but is not available to use against dividend income, only interest.

Putting this into context, if you take an employment income of £8,000 and take out company dividends of £40,000, this will mean you will pay around £1,390 more in tax than before.

Should you be taking any action? 

If you have enough reserves held in the company, consider whether it would be beneficial paying a large dividend before April 2016.

Consider changing your year end to March if you haven't already, this way you can keep track of the dividends you are taking and this will make it easier to tie in to the year end. 

You should speak with your advisor on possible ways to mitigate this tax before April. 

To discuss how the new dividend regime will affect your business or to find out more about our pro-active 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.

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.

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 

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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.

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.

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. 

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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.