The issue of whether or not to incorporate your business into a limited company is a topic previously discussed in our blog. There can be clear tax planning advantages to incorporation as it creates flexibility over levels of income chargeable to personal tax, and prevents profits immediately becoming chargeable to tax at the highest personal tax rates. There are other, commercial benefits too. (more…)
April 19, 2013
Each year at Budget time we consider how positive the announcements are for owner managed businesses in particular. For instance, the news of the corporation tax reduction to 20% from 2015 is for those paying the main rate and not relevant for small businesses. Similarly the extension to the ‘above the line’ R&D tax credits initiative is also for larger companies only. This blog has also been published in Growth Business magazine. (more…)
March 21, 2013
Increase to Annual Investment Allowance (AIA)
Top of the announcements for SMEs was the 10-fold increase to AIA. As of January 2013, the amount business owners will be able to write off as tax deductible capital expenditure in the year of purchase will increase from £25,000 to £250,000. This is a massive boost and far more significant than the previous government’s attempt at encouraging investment amongst business owners. In April 2010, the relief was £100,000, which was also generous, but not large enough to enable a lot of companies to write off all their capital purchases in the first year. This new limit however will achieve that in a single hit and we expect a lot of businesses will take advantage and upgrade their infrastructure. (more…)
January 18, 2013
Yesterday George Osborne proved that Budgets aren’t always borning and predictable. His proposed shake up and simplification of the tax system in Briatin is wide reaching and will offer many pros (and cons) to business owners looking to cut their tax bills.
Lesley Stalker gave her views on the matter to Businesszone’s editor Dan Martin. You can read the full article here.
March 22, 2012
It’s almost Christmas and the end of another busy year. It’s one many of us will be glad has passed, with business conditions continuing to be difficult due to a lack of available finance and uncertainty over the Euro and Europe affecting demand.
So what have we got to look forward to in 2012 by way of tax breaks and opportunities. Here are our picks of what was announced in the November Autumn Statement. As is becoming customary with this government, the draft legislation has already been issued, which means the changes will go ahead as suggested. (more…)
December 15, 2011
Before we give the lowdown on the Chancellor’s autumn statement, it’s worth mentioning that pithy overviews of pre-Budget announcements such as this are easier to do when there are some upbeat headlines as well as the inevitable sharp intakes of breath and economic tightening of belts, says Paul Webb, tax partner at Surrey accountant RJP. Not so here. In his speech, Osborne said he would do ‘whatever it takes’ to protect Britain from the ‘debt storm’ in Europe. (more…)
November 30, 2011
Now it has been confirmed the 50% tax rate will be lifted in the not too distant future, how might it be possible to avoid paying it al together? Taxtalk explores some relevant tax planning opportunities.
Continue April 10, 2011
There was nothing unduly generous for individuals in this Budget in spite of the increase to the personal allowance.
Continue March 23, 2011
We predict business and personal tax announcements in the coming Budget 2011. Overall whatever we get, business owners really need a ‘roadmap’ to understand how the tax system will develop over the coming years. Then they can start making planning decisions for their business. In particular having a long range view will help with longer term workforce planning, deciding whether to hire new staff, where to locate offices and important investment decisions.
Continue March 18, 2011
Yesterday’s Budget was the first decent budget for entrepreneurs and business owners for some time and it’s exactly what the country needs to help rebuild economic activity.
Continue June 23, 2010