Topical Topics
Budget Headlines
The Annual Investment Allowance was doubled to £100,000 from April 2010. Most businesses can claim 100% tax relief on investment in qualifying plant and machinery (excluding motor cars) up to this limit. From April 2012 the Annual Investment allowance will decrease to £25,000.
Entrepreneurs
Relief for Capital Gains Tax was increased to £2 million from 6 April 2010, £5
million for disposals from 23 June 2010 and £10 million for disposals from 6
April 2011.
A new 50% tax
rate on income above £150,000 has been introduced and personal income tax
allowances are reduced if income exceeds £100,000, The small companies
rate of Corporation Tax has returned to 20% from 1 April 2011. The full rate of Corporation Tax decreases to
26% from 1 April 2011.
The annual
subscription limit to Individual Savings Accounts is increased to £10,680 of
which £5,540 can be in cash from 6 April 2011.
The limit is to be increased in line with the Retail Prices Index on an
annual basis from 6 April 2011.
New rules apply
in respect of income from Furnished Holiday Lettings from 6 April 2011. Contact
us to find out how these may affect you.
HM Revenue
& Customs Authorised Mileage Rates are increased from 6 April 2011 to 45
pence per mile for the first 10,000 miles and 25 pence per mile thereafter.
Tax Investigation
Service
The accountancy
fees resulting from HM Revenue & Customs enquiries and investigations can
be costly. Join our Tax Investigation
Service to cover the cost of all such enquiries and enjoy peace of mind. Ask us
for details of the costs and benefits of membership.
Value Added Tax
The Standard
Rate of Value Added Tax increased to 20% on 4 January 2011. From 1 April 2010 if business turnover
exceeds £100,000 per annum or for new VAT registrations after that date VAT
returns have to be submitted online and any VAT due paid electronically. Contact us to discover how we can help with
online submission.
Incorporation
There are still tax savings that can be achieved through incorporation. On annual profits of £15,000 a tax saving of up to £750 could be obtained and on annual profits of £40,000 the saving could be as much as £3,000 (based on 2011/2012 tax rates).
Contact us and discover how incorporation might benefit you.
Company Accounts
Filing Deadlines
For companies with accounting periods commencing on or after 6 April 2008 the delivery time for accounts at Companies House has been reduced by one month. Private companies have reduced from 10 months to 9 months and public companies from 7 months to 6 months.
Full calendar months for filing periods have also been introduced. Where the accounting period ends on a month end, the accounts filling period will end on a month end, except for the first accounting period.
Late filing penalties have been significantly increased.
