If you are a dentist it is worth finding out the different business structures that you can practice under. A possible route is moving your dental practice to a limited company, or to incorporate a new practice as a limited company.
For NHS consultants it is important to know what you can claim tax relief on. HMRC states you can only claim on things that are used for work and it is possible to claim tax relief if you have had to use your own money for job-related matters.
As an employer, it is important to know that every working person in the UK is paid under the PAYE system, and are assigned a tax code by the HMRC. The code is made up of a number followed by a letter suffix. However, there are some ‘non-standard’ codes that can be used in exceptional circumstances.
Did you know that as an employer you could get up to £3000 a year off your National Insurance bill? In previous years the employment allowance was £2000 but in 2016-17 this went up to £3000 as an incentive for companies to take on more staff.
If you run your own business, are a company director or a high net worth individual you will need to complete a self-assessment tax return each year. This can always be a stressful time, especially if you haven’t kept all your financial records in order.
Continuing on our theme for the month about changes that will impact anyone that owns rental properties we wanted to give you more information about the changes in tax relief and the wear and tear allowance.
If you are a landlord, you need to be aware of your financial commitments when buying a property and when you sell it. When you purchase a property as a landlord, you will also need to pay stamp duty.
In April 2016 anyone that buys a second property will have to pay an extra 3% in stamp duty. This additional stamp duty is payable by anyone buying a second home worth more than £40,000. This applies if someone relocates and decides to rent out their first property right through to investors that own some buy-to-let properties.
As you probably already know you can get tax relief on your pension. The amount of tax relief can vary depending on your level of earning. Plus there are annual and lifetime limits to how much tax relief you can get on pension contributions.
All employers have to automatically enrol their eligible employees into a workplace pension scheme. However, it is important to note that an employee can decide to opt out of a pension scheme if they do not want to take advantage of this.
Accounting standards are used to prepare financial statements of all companies. These allow the companies, their investors and other regulators a standardised way of measuring financial performance.
Essentially it is a system in which employers must automatically enrol their employees onto a pension scheme if they are eligible. In the past, many workers have missed out on the potential benefits of having a company pension.
On the 6th of April 2016, new government legislation came into play; a register was created for ‘persons with significant control’. UK companies must keep this register so that individuals that have significant control over businesses are identified and their holdings are then made public.
Prior to its April update, the government viewed the taxation of dividends as a complex process that was in dire need of change. Many people were choosing to work via their own limited companies to save tax due to the high rate of corporation tax that was present at the time.
When looking to start a business you must choose what structure of the business you’ll use. This is an important decision as it determines the legal responsibilities that you will have.
The national minimum wage has been raised for over 25s from £6.70 to £7.20; whilst it has remained £6.70 for those aged 21 to 24. This new wage has been named the National Living Wage.
In business, the most important thing that defines success is whether you are making money. Often it can be difficult to determine just how much you’re making if you cannot pinpoint your sales and expenditure.
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When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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