Finance
Personal and family companies – Optimal salary for 2021/22
As we look ahead to the new financial year, what’s the optimal salary for 2021/22? A popular profit extraction strategy for shareholders in personal and family companies is to pay a small salary and to extract further profits as dividends. The optimal salary will depend on whether the employment allowance is available to shelter any…
Read MoreNational Living Wage and National Minimum Wage changes from April 2021
Under the minimum wage legislation, workers must be paid at least the statutory minimum wage for their age. There are two types of minimum wage – the National Living Wage (NLW) and the National Minimum Wage (NMW). From 1 April 2021, as well as the usual annual increases, the age threshold for the National Living…
Read MoreGift Aid Declaration
Where a Gift Aid declaration is made, the recipient charity or community amateur sports club can claim back basic rate tax on the donation. The donation is treated as made net of basic rate tax, meaning that for every £1 donated, the charity can claim back 25p, or to put it another way, a donation…
Read MoreFab5 Feature – March
We’ve had a busy couple of weeks here so have decided to keep this edition short –something to read when you’ve got a free 5 minutes! The beginning of the month was particularly busy with an earlier than usual Spring Budget Announcement and the addition of our newest team member, Sharon Bridges, Tax and Accounting…
Read MoreIR35 off-payroll working – a recap of what to do from 6 April 2021
Prior to 6 April 2021, workers who provide their services to a private sector organisation through an intermediary, such as a personal service company, need to consider whether the IR35 rules apply to them. This will be the case if the nature of the engagement is such that if they provided their services directly to…
Read MoreBusiness interruption insurance – Are pay-outs taxable?
In January, the Supreme Court ruled in favour of small businesses whose insurance companies have refused to pay out for business interruption losses as a result of the pandemic. In the following article we look at the tax implications of these pay-outs. Business interruption insurance provides cover for losses as a result of events that…
Read MoreSelling items online, are you trading?
Lockdown restrictions have forced many businesses to close temporarily meaning many people have been in search of new ways to generate some additional income. Selling goods or clothes on sites such as eBay and Depop offers the opportunity to raise some much needed cash in these difficult times. However, what are the associated tax implications…
Read MoreSpring Budget Announcement 2021
Chancellor Rishi Sunak has today delivered his Budget to Parliament. The OBR forecasts the economy to return to pre-Covid levels by the middle of 2022, with growth of 7.3% next year. Covid-19 has undoubtedly done damage and the economy will be 3% smaller in five years than it would have been. Here is a summary of the…
Read MoreVAT Deferral New Payment Scheme – online service now live
Businesses that deferred VAT payments last year can join the new scheme to pay it in eleven smaller monthly instalments from today. Eligible businesses will need to have deferred VAT payments between March and June 2020 under the VAT Payment Deferral Scheme and now have the option to pay their deferred VAT in equal consecutive…
Read MorePersonal Tax Allowances 2021/22
The income tax thresholds and allowances have been set 2021/22. Tax rates for Scotland have been announced, and the rest of the UK tax rates are subject to parliamentary approval. For full details visit the government website.
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