While we may not be able to physically join hands at the moment given the current social distancing measures, as business owners we can all virtually join together to help and support each other as much as we can. Hopefully, you will have seen the statement issued by the Prime Minister and Chancellor on 17th March 2020, outlining the additional support they are making available for businesses. These measures include: Cash Grants and Loans
Not only have we had the news that interest rates have been cut from 0.75% to 0.25% today, Rishi Sunak has also delivered his first Budget, which we’ve been awaiting with interest. It’s the detail that is important, not just those few points that make the headlines. So, here is our summary of the key points for business owners. Budget Summary for Business Owners The main income tax and corporation tax rates and thresholds remain unchanged. Entrepreneurs’ Relief We’re pleased to see that Entrepreneurs’ Relief has been retained.
Have you taken advantage of the trivial benefits legislation to treat yourself this Christmas? If not and you are the director of a company, you really should! You can buy yourself a physical gift or gift card through your company up to the value of £50 and it will be tax deductible for your company and tax free for you. There will be no Class 1A National Insurance due either. In fact, you can do this several times a year as a director but you are capped at £300 in total and £50 per occasion. That’s right, so when it’s your birthday you can treat yourself as well!
One of our newer clients has been celebrating more than usual this Bonfire weekend. This is because we claimed a missed £2,000 Employment Allowance for him! The Employment Allowance is now £3,000 but if you were eligible in previous tax years and didn’t make the claim, you can make a late claim back to 2014/15. That’s what we did for our client. If you are an employer and employ people other than yourself and pay Employers’ National Insurance, it is possible that you’re entitled to claim Employment Allowance. If you’re unsure whether you are benefitting from this
What it means to YOU For individuals, the amount you can earn tax free will increase to £12,500 from 6th April 2019. This is your Personal Allowance and should be fully utilised wherever possible. In addition, the level at which you pay 40% tax is increasing. So from 6th April 2019, you can earn £50k before paying higher rate tax. You may therefore want to defer some of your income to the next tax year. The amount that you can gain from the sale of capital assets without paying tax will also increase to £12,000. This is your Capital Gains Tax Exemption. This is relevant
Did you know that employers can provide team members who use VDUs (that’s computer screens to me and you) with eye tests and corrective treatment TAX AND NIC FREE? Well they can and that includes you as an employee of your own company. You can also offer annual health screening and medicals and up to £500 of recommended medical treatment as tax free benefits. This is a great way to support your team’s wellbeing. A Death In Service plan could be offered, which would financially benefit your team’s loved ones should they pass away while employed by you. If you would also like some life cover,
Would you like help with childcare costs? Well, the Childcare Voucher scheme which was planned to close to new entrants from 6th April, has now been extended to be available to new applicants for a further 6 months. Therefore, there is still plenty of time for YOU AND YOUR EMPLOYEES TO BENEFIT. Directors, remember that you can use the Childcare Voucher scheme yourself as employees. Childcare Vouchers can be used to cover the cost of qualifying after school clubs, etc not just nursery fees as you might expect. Your business could save up to £403 in National Insurance per employee and the employee could save up to £933 in tax and National Insurance.
Are you aware that the National Minimum Wage and National Living Wage increase from 1st April 2018? If any of your team are paid less than £8 an hour, it is worth checking whether this rate needs increasing. Please see below. The minimum hourly rates that should be paid are based on age as follows: – 25yrs and over £7.83 – 21-24yrs £7.38 – 18-20yrs £5.90 – Under 18yrs (but at least school leaving age) £4.20 There are different requirements for apprentices as well. For further information on this and any of the above please visit https://lnkd.in/ejhrQqV