Woodwards Accountancy & Taxation Services

Category Archives: tax

Spring Budget 2017

goverment boxPhilip Hammond delivered his final Spring Budget today – in future the Budget will be given in the Autumn.

The main points arising from the budget are:

  • Making Tax Digital will be deferred for landlords and unincorporated businesses with turnover below the VAT threshold, for a period of 12 months. There is however no change in the ultimate threshold at which MTD will apply, this remains at £10,000. Making Tax Digital will therefore apply for everyone below the VAT threshold from April 2019. With a gross turnover level set at £10,000, just about everyone will be caught by it.
  • NIC contributions for the self-employed will increase from April 2018, from the current level of 9% to 10%, and 11% the year after. Class 2 NIC will be abolished at the same time. The Chancellor has announced that this is to address the inbalance that the self-employed enjoy over the employed – ignoring the fact that the self-employed enjoy none of the benefits that employees enjoy, such as paid holiday, etc.
  • The Dividend Tax 0% band, orginally set at £5,000, will be drastically reduced from April 2018 to just £2,000. There has been concern raised by Professional Bodies that this will be reduced further or even abolished. The cost of this to basic rate taxpayers will be £225 per annum.

The announcements made today will, for the most part, not take place until April next year.

The Personal Allowance for 2017-18 was set in the 2016 budget at £11,500, with the basic rate band covering income up to £33,500. Therefore the higher rate threshold is £45,000.

I will be sending out Budget booklets to my clients at the weekend.

Contact me to make an appointment to discuss what the Budget might mean for you.

 

UPDATE: On the 15th March Chancellor Philip Hammond announced that the NIC Contribution rates for the self-employed will NOT be increased, remaining at 9%.

Making Tax Digital

Last year HM Revenue and Customs released 6 consultation documents relating to the plans for Making Tax Digital. They have now announced their response to the consultations. Making Tax Digital will proceed along the proposed timeline, i.e. it will come in from April 2018 for Landlords and the Self Employed Apparently, businesses will be ableContinue Reading

Making Tax Digital – The end of the Tax Return

Making Tax Digital – For Unincorporated Businesses and Landlords. At long last, H M Revenue and Customs have released their consultation documents on the future of the Tax System. With the consultation ending on the 7th November, that gives them just 16 months to take into account comments made, instruct external software companies as toContinue Reading

Self-Assessment Tax Return Deadline!

It’s December, Christmas is just 3 weeks away, the last thing on your mind is probably your tax return. BUT, the deadline for filing your Tax Return is also only 8 weeks away, that’s not very long at all! If you fail to submit your Return by the 31st January, you will be liable for aContinue Reading

Changes to Class 2 National Insurance Contributions

Changes have been made to the way Class 2 National Insurance Contributions are collected. Until now, contributions have been collected either by direct debit, or by six monthly demands. However, if you are dealt with under Self Assessment and complete the Self-Employment or Partnership pages, with effect from the 12th April 2015 Class 2 NICContinue Reading

Budget 2015 – The End of the Tax Return

Is this the end of the Tax Return? Announced today in the Budget are plans to eliminate the need for millions of individuals and businesses to file annual tax returns. Starting in 2016, we are told that 5 million small businesses and 10 million individuals will have access to their own digital tax account, whichContinue Reading

Self-Assessment Tax Return Deadline!

The Deadline for submitting your Self-Assessment Tax Return is fast approaching – there are just 20 working days left, including today! If you fail to submit your Return by the 31st January, you will be liable for a £100 penalty. If you are in a partnership, and the partnership Return is also late, there isContinue Reading

Request a Call Back

Woodwards-06

Woodwards Accountancy,
Paignton, Devon TQ4 7SN
Or call Alan Direct, on 01803 228628

© Copyright 2014 Woodwards Accountancy

Woodwards Accountancy, Paignton, Devon TQ4 7SN T: 01803 228 628

Woodwards-05