FREE CONSULTATION - CALL US TODAY! 0203 189 1736|info@pmaaccountants.co.uk

About Asif

This author has not yet filled in any details.
So far Asif has created 206 blog entries.

Profit extraction in 2020/21 – What is the optimal salary?

2020-04-01T20:00:49+01:00April 15th, 2020|Categories: Blog, Limited Company, PAYE|Tags: , , , , , |

A popular tax-efficient profit extraction strategy used by personal and family companies is to take a small salary and extract further profits as dividends. Where this approach is adopted, the starting point is to determine the optimal salary. While this will depend on personal circumstances and there is no excuse for not doing the sums, there are some general guidelines. Where the director does not have the requisite 35 qualifying years to provide access to the full single tier state pension paying a salary at least equal to the lower earnings limit for Class 1 National Insurance purposes (set [...]

HMRC urge people to prepare for CGT payment change

2020-04-01T19:40:32+01:00April 12th, 2020|Categories: Blog, HMRC, Taxation|Tags: , , , , |

Property owners are being urged to get ready for changes to the deadline of capital gains tax (CGT) payments. Broadly, from 6 April 2020, a UK resident who sells a residential property in the UK will have 30 days to tell HMRC and pay any CGT Tax owed. HMRC are currently developing a new online service to allow taxpayers to report and pay any CGT owed. A CGT report and accompanying payment of tax may be required where the taxpayer sells or otherwise dispose of: - a property that they have not used as their main home; - a holiday [...]

INCREASE IN WORKING TAX CREDITS

2020-04-09T21:16:48+01:00April 9th, 2020|Categories: Blog, COVID-19, Personal Finance|Tags: , , |

The government has announced that Working Tax Credits payments will be increased from 6 April 2020. As part of a number of measures to support the country during the COVID-19 pandemic, the basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021. The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week. The government is also uprating Child Benefit, other tax credits rates and thresholds, and [...]

How To Claim For Your Employees’ Wages Through The Coronavirus Job Retention Scheme (CJRS)

2020-04-09T00:12:48+01:00April 9th, 2020|Categories: Blog, COVID-19|Tags: , , , |

The Government recently provided more details on how the CJRS works. Please note the online service you will use to claim is not open yet – we will let you know when it is. We have the capability to calculate and submit your CJRS Claim so please let us know if we can help. Overview of the scheme The principle behind the CJRS is that If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (C19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage [...]

Changes to off-payroll working rules delayed until 2021

2020-04-01T19:37:57+01:00April 8th, 2020|Categories: Blog, HMRC, Limited Company|Tags: , , , |

Amid concerns about their potential impact during the coronavirus pandemic, the government has announced a one year delay to changes to the off payroll working rules, due to take effect from April 2020. In an announcement at the end of the parliamentary debate on the Budget speech, Steve Barclay, chief secretary to the Treasury, said that the government is postponing the reforms to the off payroll working rules (known as the IR35 rules) from April 2020 to April 2021. Off-payroll working rules, known as IR35, were introduced in 2000 to ensure that someone working like an employee, but through their [...]

Reduction in the lifetime limit for entrepreneurs’ relief

2020-04-01T19:34:16+01:00April 5th, 2020|Categories: Blog, Limited Company, Taxation|Tags: , , , |

At Budget 2020 the Chancellor of the Exchequer announced that the lifetime limit of entrepreneurs' relief (ER) would be reduced from £10 million to £1 million for ER qualifying disposals made on or after 11 March 2020. Rules will also apply the revised limit to certain arrangements and elections that seek to apply the earlier £10 million lifetime limit. These rules are: - forestalling arrangements involving uncompleted contracts; and - elections made under TGCA 1992, s 169Q in connection with a share reorganisation or exchange. There are no transitional rules for disposals that take place after 11 March 2020, including where: [...]

Homeworking flat rate allowances increased

2020-04-01T19:15:38+01:00April 2nd, 2020|Categories: Blog, Limited Company, Self Employment|Tags: , , , |

HMRC have announced that it will increase the maximum flat rate tax deduction available where employees incur additional household costs where they work at home under homeworking arrangements, from £4 per week to £6 per week. This will take effect from April 2020. Broadly, no tax liability arises where employers make payments to employees for reasonable additional household expenses, which the employee incurs in carrying out duties of the employment at home under 'homeworking arrangements'. 'Homeworking arrangements' are arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment [...]

Deferral of VAT payments due to coronavirus (COVID-19)

2020-03-27T21:06:38+00:00March 27th, 2020|Categories: Blog, COVID-19|Tags: , , , |

The Chancellor announced a VAT payments deferral on 20 March to support businesses with cash flow during the COVID-19 pandemic. This means that all businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 3‌0‌‌ June. You therefore have until 3‌1‌‌ March 2021 to pay any VAT deferred as a result of this announcement. You do not need to inform HMRC if you wish to defer payment. You can opt in to the deferral simply by not making VAT payments due in this period. If you pay by Direct Debit you [...]

Covid-19 Self Employed Income Support Scheme Announced

2020-03-26T20:04:21+00:00March 26th, 2020|Categories: Blog, COVID-19|Tags: , , |

Chancellor Rishi Sunak has announced the Self-Employed Income Support Scheme to help Britain's 5m self-employed get through the coronavirus pandemic. Below is a quick summary which may help you navigate the announcement (you can read the full text here), but please note things are changing very quickly so what's accurate right now, might not be so in a few days time! We are aiming to keep this page on our website as up to date as possible so it is worth checking every so often. If you are self employed, you don't need to do anything right now Those eligible for the [...]

March 2020 Questions and Answers

2020-03-10T12:48:43+00:00March 25th, 2020|Categories: Questions & Answers|Tags: , , |

Q. If I sell a buy-to-let property in July 2020, when will I have to pay the capital gains tax (CGT) arising on the sale? A. Finance Act 2019 made certain changes regarding payment of CGT, which take effect from April 2020 and broadly align the position of UK residents and non-UK residents. Subject to certain exceptions, where there has been a disposal of a residential property, payment on account of the CGT will be due on the filing date for the return, which is generally within 30 days of the day after the date the property sale is completed. [...]

Load More Posts