Auto enrolment pensions
17th June 201617th June 2016
If you are an employer, you should have received a letter from the Pensions Regulator in connection with the new obligation for employers to set up a pension scheme for their employees. There is no way of escaping having to do something here. Even if you, as Director of your own company, are the only employee, you still need to take some form of action with regard to auto enrolment.
As a firm of accountants, we are not allowed to provide pensions advice, however we can provide you with an outline of your auto enrolment obligations, and actions you need to take. In addition, we work closely with a firm of Financial Advisors who are currently willing to help my clients on a no-fee basis.
Don’t delay, as the longer you leave this, the more risk there is of missing your deadline and receiving penalty notices from the Pensions Regulator.
For a free no obligation chat, please don’t hesitate to contact me.
First staff member joins the team
15th June 201615th June 2016
I am delighted to announce that Jo McCorrie has been appointed as Accounts Assistant at Townend English.
Jo brings a wealth of experience gained in accounts and office roles over the last 25 years. Jo has just returned to the UK after spending the last 8 years living in Australia where she achieved a degree in Law (Hons) and spent 3 years working as a Lawyer in Brisbane. Jo is currently studying towards her ICB in Bookkeeping and will be supporting the practice with accounts preparation, bookkeeping, VAT and payroll.
Buy to let landlords – Restriction of loan interest relief
15th June 2016
If you are a buy to let landlord, you should be aware that income tax relief will be restricted to the basic rate of tax in the future. This is being phased in from 17/18 to be fully implemented in 20/21.
What does this mean? - if you are a higher rate (40%) tax payer, and you have a buy to let on which you have a mortgage, you won't get the same tax relief for the interest on your mortgage payments you used to get. This means your taxable profits on the buy to let will be higher, and you will pay more tax.
If the above is a concern for you, and you would like to discuss what options you may have, then please don't hesitate to contact me.
Ltd company dividends
18th December 201518th December 2015
Anybody who is currently operating as a limited company, and who has been extracting profits through a combination of dividends and salary needs to be aware of the impending changes to how dividends are taxed from the 6th April. This could have serious implications on the amount of income tax you pay.
Up until April 16, divis in the basic rate band were notionally “tax free” – these will now be subject to 7.5% on anything over £5000 and 32.5% for higher rate tax payers.
If this affects you, you may consider paying a dividend before these changes come into place on the 6th April 2016. This will need some planning however.
If you would like to discuss this, or any other tax or accounting topic, please don’t hesitate to give me a call.
Help to Buy ISA
18th December 2015
The government has recently announced a new product to help first time buyers.
In summary, people saving for their first home can do so through a Help to Buy ISA. You can save up to £200 per month and the Government will then top this up by 25% (up to £3,000). This seems like a no brainer – why wouldn’t you want £3,000 towards a deposit on your first home?
If you would like to discuss this, or any other tax or accounting matter, then please don’t hesitate to contact me.
Transferable allowance for (some) married couples
18th December 2015
If you are a basic rate (i.e. 20%) tax payer, and your husband, wife or civil partner isn’t using all of their personal allowance (i.e. earning less than £10,600), be sure to make use of the transferrable allowance for married couples and reduce your overall tax bill.
Basically, by taking 10 minutes to complete an online form to HMRC, your partner can switch £1,060 of their personal allowance to you, thus increasing your own personal allowance and reducing the tax you pay by up to £212.
If you would like to discuss this or any other accounting or tax matter, then please don’t hesitate to contact me.