Self-Assessment.......why do it yourself?

Self-Assessment.......why do it yourself?

National Insurance U-Turn

So, the NIC U-Turn came after pressure from all sides on Philip Hammond. However, the money has to come from somewhere so I'm not sure we should be breathing a sigh of relief just yet.

For now, it's a case of 'watch this space'

HR DEPT - Stratford and Evesham

Whatever your HR needs, Julie is a friendly HR professional with senior level HR experience which she uses to find practical solutions to your HR issues and give practical advice and guidance to new employers.

HR DEPT Stratford and Evesham

HR DEPT - Stratford and Evesham

Budget 2017 - National Insurance Contributions

From April 2018, the class 4 national insurance rate will rise from 9% to 10%, and then from 10% to 11% in April 2019.

Class 4 contributions are paid on profits above £8060 (current lower level earnings rate). So, if you make profits as a self-employed person of £20,000, you will pay an additional £119.40 national insurance. If your profit is £40,000, you will pay an additional £319.40.

However, the class 2 national insurance contributions are due to be abolished, saving you £145.

So, whether you will be worse off or not will depend on how much profit you are making.

Remember, the class 4 contributions are based on your profits, after you have deducted your costs, not the amount of income or turnover you have.

Budget 2017 - National Insurance Contributions

Budget 2017 - Dividend allowance reduction

The £5,000 dividend allowance, introduced in April 2016, is due to be cut right back to just £2,000 from April 2018.

If you run your own limited company and take money out through dividends, then you will have to pay an additional £225 in tax in the 2018/19 tax year and thereafter.

Budget 2017 - Dividend allowance reduction

Making Tax Digital

HMRC plans to introduce changes to the way businesses tell them about their earnings and tax returns. Making Tax Digital is HMRC's new initiative to collect data more frequently and ensure the correct tax is collected.

The scheme will be piloted from April 2017 and will become mandatory for some businesses from April 2018.

Make sure you're not taken by surprise when the changes happen.

More information can be found here: making-tax-digital.pdf

Making Tax Digital

Changes to Employment Allowance

From 6th April 2016, limited companies with only one director and no other employees (or where all other employees are paid below the secondary threshold for class 1 national insurance - £156 per week) are no longer allowed to claim employment allowance.

This change only applies to limited companies so you won't be affected if you're a sole trader.

Follow this link to the GOV website for more information: Employment-allowance-further-employer-guidance

Savings and Dividends

Changes from April 2016 mean that savings and dividends are no longer taxed at source or attract tax credits. There is now a personal savings allowance of £1,000 and a dividend allowance of £5,000. 

This means you may need to complete a self assessment and pay tax on the money you earn from savings and dividends.

Go to HMRC for more details.

Savings and Dividends

Input VAT on the Flat

Did you know? If you’re on the Flat rate VAT scheme, you can still claim input VAT when purchasing capital expenditure goods if the purchase is:

Input VAT on the Flat

KTAS partners with QuickBooks online

KTAS Accountancy Services partners with QuickBooks online. Find out how, together, we can help you to streamline your bookkeeping and accounting processes and get up-to-date financial information whenever and wherever you want it, at the touch of a button

KTAS partners with QuickBooks online

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