Author: Sharon Wright A popular profit extraction strategy for personal and family companies is to extract a small salary, taking further profits as dividends. Where this strategy is pursued, at what level should salary be set? Salary Taking a small salary each tax year is tax efficient because it is a tax-deductible expense in your … Read More
A Simple Guide to the Spring Statement 2022
Provided by ACCA This is a basic guide, prepared by ACCA’s Technical Advisory team, for members and their colleagues or clients. It’s an introduction only and should not be used as a definitive guide since individual circumstances may vary. Specific advice should be obtained, where necessary. The headline message from the Chancellor was future tax … Read More
Year-end tax planning for small companies
The end of the tax year is approaching, and now is an important time to be thinking about your remuneration strategy and tax planning. You will need to consider appropriate levels of salary, pension contributions and dividends, before the end of the tax year on 5 April 2022, and plan for the new one. Tax … Read More
October Small Business Update
This article looks at current and proposed changes to tax in the short term, that may affect you. Further announcements are due to be detailed in the Autumn Budget and Spending Review which will take place on 27 October 2021. National insurance (NI) You have probably heard that the Government has announced from 6 April … Read More
What State Pension am I likely to get?
As it is something we are frequently asked about, we thought it might be useful to provide a summary of how the state pension system works. Under the new rules you need 35 qualifying years to be entitled to a full state pension. Even then, your pension may be reduced if you were contracted out … Read More
July Small Business Update
Here is an update on some current topics that may be of interest to you. Making Tax Digital (MTD) HMRC are progressing with their plans to encourage all businesses and individuals to maintain records in digital format. The aim is for the tax system to operate completely paperless. HMRC says this will lead to a … Read More
Should my company purchase or lease an electric or low emission car?
Until recently, company cars have been unpopular because of the high benefit in kind (BIK) charges associated with them, and it has been simpler and more tax efficient for employees and directors to claim business mileage. However, the Government is committed to ending the sale of new petrol and diesel cars in the UK by … Read More
March Small Business Update
Here are a few important reminders which may be relevant to you this month. VAT deferral If you deferred a VAT payment that was due between 20 March 2020 and 30 June 2020, this will need to be settled in full by 31 March 2021. If you cannot afford to do this, you can opt … Read More
What did we learn from the 2021 Budget Announcement?
After an extremely turbulent year in the business world, the team at Competex awaited the 2021 budget announcement with bated breath. While the last year has proved to us that nothing is certain, Rishi Sunak’s announcement will help many businesses get some clarity on what the future may hold for them in the short to … Read More
How to prepare for the Off Payroll Working (IR35) changes in April 2021 [CHECKLIST]
The government looks set to go ahead with the changes to IR35 for the private sector from April 2021, and from this date onwards, the responsibility for determining the IR35 status of any contractor role will pass to the end-client. This means that contractors will no longer have control over the process by which their … Read More