Author: hflaccountancy

Autumn newsletter 2019

For some of us the state pension age is fast approaching. Where that is the case you should receive a letter from the Pension Service, certainly no later than 2 months before you reach that milestone. You do have to actually claim the state pension to receive it and how you do so is laid out in the correspondence. In the vast majority of cases you will make the claim and the pension will be paid across, usually within 5 weeks of reaching state pension age.

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Dividend Complexities

The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000 from 6 April 2018. The cut is likely to have a significant impact on employees and directors of small businesses who receive both salary and dividend payments. Many family-owned companies allocate dividends towards the end of […]

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Summer newsletter 2019

If you are looking at buying your first home or know somebody else who is considering doing so, such as your children or grandchildren, then this Government backed savings scheme might be an option. This has been available since December 2015 and is aimed at first time buyers aged 16 or over who are looking to save up a deposit for the purchase of their first home. The Government adds a bonus of 25% to your savings up to a maximum of £3,000. This is per person. It can be used as a purchase of a first time buyer’s home worth up to £450,000 in London or £250,000 in the rest of the UK.

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Spring Newsletter 2019

Spring is in the air and traditionally this is the time of year when couples marry.
Possibly the most important item on the wedding shopping list is the bride’s gown. According to Bride Magazine the average cost of a wedding dress in the UK in 2018 was £1,378, with a particular royal wedding dress reported to be in the £100,000 price range.

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Budget 2018 Newsletter

What was your most interesting part of yesterday’s budget?  For us it was the clear focus on business and the support to help businesses grow.  With new allowances for electric vehicle charging facilities, for building new commercial structures and buildings and an increase in the level of tax relief designed to encourage businesses to spend […]

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Van Benefits in Kind Rules

Driving a van as your company vehicle has tax advantages over a car. The tax charge is generally low compared with a car, and can even be zero in circumstances where a car would be taxable. What conditions must be met for tax-free use? Van tax rates In his Autumn Budget 2017 the Chancellor announced an increase in the taxable benefit in kind for employees (including directors) […]

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Employment allowance – can you benefit?

The National Insurance employment allowance can reduce an employer’s National Insurance bill by up to £3,000 – but not all businesses can benefit. Nature of the allowance Where available, the allowance is set against the employer’s secondary Class 1 National Insurance bill. The allowance, set at £3,000, reduces the National Insurance payable by the employer […]

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New Rules for Cash Basis Accounting for Small Businesses

Cash basis threshold increased The cash basis is a simpler way for smaller businesses to work out their taxable profit. Under the cash basis, profit is calculated by reference to cash in and cash out, rather than by reference to income earned in the period and expenditure incurred, as is the case under the traditional […]

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Tax Relief for Pre-Trading Expenditure

Before any business can start to trade, there is a certain amount of expenditure that is inevitably incurred. For example market research; kitting out of business premises; financial advice in preparing business plans; travel costs; supplies; advertising etc. Although the business bank account doesn’t exist yet, you can still get tax relief on these vital business costs […]

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Dividend Etiquette

How much can you withdraw as a Dividend? Dividends are not meant to be another form of remuneration, but are the format in which you can distribute surplus profits to shareholders.  It is therefore important to ensure that you do have excess profits before any dividend is approved. This may sound obvious, but smaller businesses […]

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What’s Appropriate?

One of the tax changes which gained a nanosecond in the budget speech was the TCGA 92 s161(1) rule about appropriations to and from stock. Philip Hammond called this “converting capital losses into trading losses”. Why is this relevant or being tackled at this time? As part of general anti-avoidance the option to convert losses […]

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