Budget 2017 – Key points update

Budget 2017

Hammond has delivered his second Budget and whilst not an extensive budget has some key points which we think will affect our clients:

Business Tax

  • For employers note that the following changes to the national living wage and national minimum wage from April 2018:
    • Aged > 25        £7.83ph from £7.50ph
    • Aged 21-24      £7.38ph from £7.05ph
    • Aged 18-20      £5.90ph from £5.60ph
    • Aged 16-18      £4.20ph from £4.02ph
    • Apprentice       £3.70ph from £3.50ph
  • VAT threshold is not to be reduced as commentators thought, but is to remain at £85,000 for next two years
  • However, there are to be new measures to take non-registration and payment of VAT by online digital traders
  • Business Rates will increase in line with CPI rather than RPI which is a positive step and any businesses affected by the “staircase tax” (where they have two or more ‘offices’ which are accessed by communal stairs or corridors) will have their previous rates value reinstated
  • For freelancers and contractors no plans were stated about IR35 reforms to the private sector (as happened with the public sector from April 2017) – however a proposed consultation is mentioned in the chancellor’s “red book”, so may well occur in the future
  • £500m is to be invested in 5g mobile networks, artificial intelligence and full fibre broadband
  • Further investments to support electrical cars and charging points, including confirmation that if staff use electrical charging points at work; it will not be classed as a benefit in kind (BIK)
  • From 1/1/18 an additional £2.3bn will be available to fund an increase in the research and development tax credit (from 11% to 12%) for large companies – unchanged for small companies

Personal Tax

  • An individual’s tax free personal allowance will increase from £11,500 to £11,850 in April 2018
  • Correspondingly the higher rate threshold increases to £46,350 (from £43,500)
  • The planned fuel duty rise in April 2018 for diesel and petrol cars has been scrapped
  • For clients with diesel company cars, the supplement in the BIK calculations is to increase by 1% furthering the expense of having a company car
  • The weekly state pension rises to £125.95pw from April, and those under the new state pension will see a rise to £164.35pw.
  • The pensions lifetime allowance will increase from April 2018 to £1,030,000
  • The capital gains tax exemption threshold for 2018/19 will be £11,700 from £11,300.

Landlords

  • Councils will be given powers to charge a 100% council tax premium on vacant properties – no criteria has been issued yet, but this may affect our landlord clients with properties that are empty.
  • New taskforce for homelessness – potentially benefits or grants for landlords who may take use their properties to house disadvantaged persons.

For Moore Accountancy’s more local clients – there is further devolution of powers to Greater Manchester meaning the GMCA has more autonomy to help the needs of the people in the area.

And finally, with the start of the Christmas season it is good to know that duty on beer, wine and spirits will be frozen – worth raising a glass for (or for drinking whilst you read the OOTLAR – the technical detail of each tax policy measure announced….)

 

If you have any questions or concerns after this budget update then please give the team a call on 07542299247 or email us at info@mooreaccountancy.co.uk

A new way of receiving client money

One of the key issues that Moore Accountancy clients have is cashflow and ensuring client money is received quickly.

© Melissa King

Cash flow (Bills and a piggy bank © Melissa King )

But there is a new scheme starting at the end of April which may help . . . . . payments to your mobile phone!

From the 29th April 2014 you can pay people using just their mobile number, which means that you can also receive money by providing your mobile number to a client. The excuses of not having time to go to the bank, or being unable to set you up as a new payment on their online banking, will be reduced as they will no longer need your sort code and account number.

You need to register/link your mobile phone with your current account and ensure that you have access to online banking before you are able to receive and make payments.

Don’t worry about mistyping a phone number, as before any payments are made the sender will be asked to check the recipient’s name and confirm it is who you want to send money to.

9 banks have already joined the service which launches on 29th April 2014 with many more to join later this year.

Registration began on 2nd April 2014, and T&Cs may apply, so make sure you read your banking small print.

Look at the webite PAYM for more information and for participating banks.

Moore Accountancy use online banking and we have signed up early to the scheme – let us know if you do too.

One simple way to avoid getting stung by the HMRC task force

We’ve all heard the story of the huge multi-national corporate companies that whilst operating very successfully in the UK pay little or no tax.

The latest company to come to light is Facebook, where it has been reported that despite making an estimated £200 million from its UK operations it paid no corporation tax last year!  And whilst Facebook tell us “We take our tax obligations seriously..to ensure compliance with local law”, it is tax avoidance in many people’s eyes. And many of us feel it is well, immoral.

HMRC

But it’s not just huge multi-nationals that are guilty of tax avoidance and the HMRC came up with the idea of launching a series of Task Forces to crack down on tax evasion throughout the UK.

Working in what they describe as “short, sharp, bursts” these task forces are focusing on targeted areas of the country, and in what they are describing as “high risk” industries.

One such Task Force is looking at the property rental market and here at Moore Accountancy we have had first-hand experience in dealing with such a case. We were contacted by a very worried landlord who had been guilty of perhaps not declaring everything as efficiently as they should. With our experience, however, we were able to handle the case with ease.

This is what they had to say

‘We recently engaged Moore Accountancy to resolve our previously undisclosed income from a flat we have been renting out for several years. Sid was wonderful, visiting us at home, spending lots of time going over our books and sorting everything out quickly and efficiently. She liaised with HMRC, and made what was quite a worrying situation into just a blip!!.  She kept us informed at all times, without us having to push for info. All in all, even having had to spend money!! it was made almost painless.!!. ‘

It’s not just landlords that have been targeted, so far they have looked at health professionals, the fishing industry in Scotland, taxi drivers in London, hauliers in the West Midlands and the holiday industry throughout the UK, to name but a few, and they have plenty more planned.

How can we help?

We feel that when dealing with the HMRC it is imperative that you get professional advice from the outset and working with a practice like Moore Accountancy is the right place to start. We have not only had experience in working with the HMRC task force but are confident that we can offer you the best advice for your situation.

There’s no getting away with it, yes you will have to pay the tax. But by doing it before the tax man cometh means that you could avoid a heavy fine and the possibility of a criminal prosecution, not to mention a very invasive investigation.

Get in touch with us today, we have a wealth of experience in dealing with the HMRC and therefore understand the process impeccably, it could save you a massive headache and tax bill in the long run.

New Year Expansion for Moore Accountancy

20130314-234507.jpgHere at Moore Accountancy, we work with lots of businesses of different sizes and types from one man bands who want to remain as such, to companies with a number of employees.

One of the regular issues we come across is whether or not to take a risk and try to grow, or remain in a “safe zone” with sufficient sales and profit levels to live off. This arises more frequently with the lifestyle businesses that we serve.

This quarter it was us that had to consider the issue.

Did we remain as we were – taking on more clients but then working more hours which compromised the work-life balance we chose to have?
Or should we take the risk of employing someone, of relinquishing some of the control and autonomy we have by being the principal accountant in the practice?

It is a debate we had for a few months.
We recently came to the conclusion that it was better to take the risk, share the workload and provide an even better level of service to our existing and new accountancy and tax clients.

And so, we will start 2013 with a new employee. Someone who shares the Moore Accountancy passion to support, grow and develop start-ups and small business, and does it with a smile……

Welcome Jude Stephens!

2012/13 tax year – will the granny and pasty tax budget changes affect small businesses and individuals?

The 2012 Budget, a few weeks ago didn’t really surprise anyone. We knew what many of the income tax and corporation tax levels were going to be for 2012/13. We received further clarifications on some things and the Government have managed our expectations for the 2013/14 tax year.

Budget Image courtesy of Tax Credits

It will be remembered as the “pasty tax” and “granny tax” budget due to the VAT changes on hot food and the change in the pensioners personal tax thresholds.

Below are some of the key points summarised – please bookmark this post for future reference – and if you or anyone you know needs an Accountant in South Manchester (Altrincham) then get in touch!

 

 

General:

  • Child benefit will be fall by 1% for every £100 earned over £50,000. Only earners with more than £60,000 will lose all the benefit
  • Stamp duty on properties over £2m is now at 7%
  • Increase in fuel duty of 3.02p per litre from 1 August 2012

Individuals:

  • Personal Allowance to be £8,105 from April 2012 (Higher rate effect from £42,475 (PA + £34,370) for under 65’s
  • Personal Allowance to be £9,205 from April 2013 for under 65’s
  • Personal Allowance to be £10,500 from April 2012 and to remain the same for 2013/14 for 65-74 year olds
  • Personal Allowance to be £10,660 from April 2012 and to remain the same for 2013/14 for over 75 year olds
  • In April 2013, the top rate of Income Tax will be reduced from 50 per cent to 45 per cent
  • NI Class 2 rates increased to £2.65pw (small earnings exemption at £5,595)
  • NI Class 4 rates remain at 9% on profits over £7,605 (£7,225 2011/12)
  • CGT level remains at £10,600

Small Business – general:

  • VAT registration threshold increased to £77,000
  • No new regulations for firms with less than 10 staff continues for next few years (aside from public safety)
  • Consultation on simplifying tax for small firms with a turnover of up to £77,000

Limited Companies:

  • Main rate of Corporation Tax 24% from April 2012
  • Small rate of Corporation Tax remains at 20%
  • Tax credit to be introduced for video games, animation and high end TV industries

There have obviously been many other changes in the 2012 budget for small businesses and individuals which are not as relevant to the majority – if you feel there is something you require more information on then please get in touch with Moore Accountancy – South Manchester Accountants.