Bonus, dividend or higher salary?

 If you run your own company and are considering an increase in your salary 2010-11 you might like to consider the following points: From 6 April 2010 if your income is in excess of £100,000 you will start to lose your tax personal allowance, initially this can create a marginal tax rate up to…

The Christmas Party

For those of you who are organising a well deserved works party this Christmas we have sketched out below the current reliefs available: The cost of a staff party or other annual entertainment is allowed as a deduction for tax purposes. Also as long as the criteria below are followed, there will be no taxable…

Avoiding the high income tax rates

From 6 April 2010 the 50% income tax rate comes into play – for those with income over £150,000. For those earning over £100,000 personal allowances are withdrawn, creating an eye-watering marginal rate of 61.5% There are options. If you are concerned about the impact of this new tax band on your taxed income do…

Loss relief – don’t lose out!

As a measure to help businesses during the recession, the Finance Bill 2009 allows trading losses for businesses to be carried back up to a maximum of three years. To qualify the losses must be suffered: For limited companies, during trading periods ending in the two year period to 23 November 2010, and For unincorporated,…

Make the most of capital allowances

The rules on capital allowances have been changed and are now generous towards most small businesses. If you are thinking of investing in assets that qualify for the Annual Investment Allowance (AIA) during 2009-10 it is worth bearing in mind the additional relief you can claim to take advantage of the 40% First Year Allowance…

Year end tax planning

We are approaching the end of another tax year – and an eventful one it has been! This has particular relevance to those who are self employed, either a sole trader or in partnership. Due to the current economic downturn you may recently have experienced a drop in your profitability, indeed you may be trading…

Running your company from home

If you run your business through a limited company and your base of operations is your home office, it is possible to charge your company rent. Of course if you do this the company will be able to deduct the rents from its profits and you will need to declare the rents on your self-assessment…

Capital Allowances and personal tax planning

There has been a big change to the amount small businesses can claim for tax purposes when they invest in capital items such as plant and machinery (these are known as capital allowances). From the 6 April 2008 sole traders and partners can claim up to £50,000 a year as a direct write off against…