Company cars – are they worth having?

  Government tax policy on company cars is new heavily focused on steering people towards choosing an efficient or ‘green’ car. This doesn’t have to mean driving a Smart car! There are for instance Audi A3, BMW320d and Honda Civic models which fall into the green (sub 111 g/km) bracket. For further details, look at…

Withdrawal of age related allowances

Is your birthday after 5 April 1948? If the answer is yes you will not qualify for the higher value personal allowances presently available to the over 65s and over 75s. From 6 April 2013 Age Related Personal Allowances are being phased out. Here’s how the changes will work in practice:   1.            If your…

HMRC to cap certain tax reliefs

In an attempt to ensure that higher rate tax payers make a reasonable contribution to UK tax revenues, new legislation is to be introduced from 6 April 2013 that limits access to certain tax reliefs. Taxpayers will be denied relief(s) if the claim exceeds 25% of their income or £50,000, whichever is the greater. This…

Salary v Dividends in 2012/13

It is common for owner managers to take income from their own company through a mixture of salary and dividends. For 2012/13 the maximum salary at which no tax or NI is payable is £7,485. Although no employee’s or employer’s NI is due on this level of salary, the employee does still receive a full…