In a nutshell it was typical political waffle and little substance. But what we want to know and what our clients want to know is what it means for them. Well check out the simple list below to save time and get straight to the main factual points.

• Minimum wage rates expected to keep rising. The National Living Wage will rise to £7.83 per hour from April 2018 - meaning more pressure on small business as wage costs rise and sales decrease, leading to further staff cut backs or new ways to automate work with fewer staff needed e.g. self-service.
• Country still has debt interest payments of £50 billion per year as before - no surprises there.
• £1.5 billion has been allocated to departments to prepare for Brexit in March 2019 - meaning less to spending on other areas such as NHS etc.
• £1.67 billion to be given to London to start building a further 27,000 affordable homes by end of 2021-22 - 27,000 properties for a city that houses 8.63 Million people (last count in 2017) means nothing much happening and developers pocketing the vast amount of the money and selling the flats at 300k plus. But there will be work for skilled professional tradesmen / women as sites get redeveloped.
• Consultation on a new VAT collection mechanism for online sales - e.g. Ebay, Amazon, Airbnb etc. sellers are to be targeted further as already explained on previous blogs. HMRC wants the tax on this hidden income and Ebay and Amazon have already cut deals with HMRC to not look at their own finances and instead give will happily provide HMRC info on sellers on their websites.
• Consultation on tax changes to discourage use of single-use plastic, including takeaway boxes and disposable cups - like plastic bag charge of 5p.
• Next revaluation of business rates to be brought forward by one year to 2021 - a lot of businesses ended up with nil business rates for small shops and double or more for large shops in the last change in April 2017. Meaning larger shops are becoming empty in out of town areas and the lack of government income from smaller units. Do they increase small unit from nil and reduce for large? - We think so it’s the likely outcome for 'no idea what it’s like to be self-employed' civil servants in Whitehall.
• Consultation launched on the role of cash in the new economy, including future demand for 1p and 2p pieces and £50 notes. Basically the most significant hidden point in the whole statement, basically it means they want to move to a European style system where everyone has to provide a receipt for work and cash payments above a certain amount are no longer permitted. The plan in the small print of actual statement (not speech) say they want to crack down on cash-in-hand payments and the government expects to rake in as much as £3.5 billion a year in tax from cash payments.
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Some of the main points for self employed and business owners from the UK Chancellor's Autumn budget announcement 22/11/17.

• Tax-free personal allowance on income tax to rise to £11,850 in April 2018 before £11,500
  
• Higher-rate tax threshold to increase to £46,350 before £43,000.
  
• VAT threshold for small business to remain at £85,000 for two years, same as before.
  
• £540m to support the growth of electric cars, including more charging points, remains to be seen.
  
• A further £2.3bn allocated for investment in research and development, remains to be seen.
  
• Rises in business rates to be pegged to CPI measure of inflation, not higher RPI, remains to be seen how it effects rates in 'real' terms.
  
• Digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction to be subject to income tax as part of tax avoidance clampdown. Expected to raise about £200m a year, ie Ebay and Amazon sellers etc will be effected.
  
• Short-haul air passenger duty rates and long-haul economy rates to be frozen, paid for by an increase on premium-class tickets and on private jets, remains to be seen.
  
• National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83. Bad news for employers as wages bills will rise.
  
• Fuel duty rise for petrol and diesel cars scheduled for April 2018 scrapped, ok but nonsense really as the prices vary so much from pump to pump and depends on which day you purchase also.
  
• Vehicle excise duty for diesel cars that do not meet latest standards to rise by one band in April 2018, bad news for older vehicles.
  
• Tax hike will not apply to van owners, no change then.
  
• Existing diesel supplement in company car tax to rise by 1%, bad news for diesel owners.
  
• Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000, good news to help push sales.
  
• To help those in London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, good news to help push sales.
  
• 100% council tax premium to be levied on empty properties, bad news for landlords.
  
• Young person's railcard extended to 26-30-year-olds, good news for students and reduce travel for younger employees.
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park, Kingston upon Thames, Cheam, and Surbiton they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting companies, contractors and self employed people throughout the UK, they regularly help clients with their payroll and pension. And help grow their business by providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

HOW THE SPRING BUDGET 2017 AFFECTS THE SELF EMPLOYED & LIMITED BUSINESSES
 
The income tax personal allowance and the basic rate bands for this year’s tax return have already been announced. From 6th April 2017, personal allowance is set to increase by £500 to £11,500 and the basic rate band will rise to £33,500 from £32,000. This will result in a higher rate threshold of £45,000.
 
The Chancellor has proclaimed that the personal allowance will continue to rise to £12,500 and higher rate threshold to rise to £50,000 by the end of the Parliament. Also, the Capital Gains Tax annual exemption will increase by £200 in 2017/2018 from £11,100 to £11,300.
 
The rate of National Insurance Contributions for self-employed people will rise. Presently, self-employed individuals have to pay both Class 4 and Class 2 National Insurance Contributions (NICs):

• Class 4 NICs at 9% are paid only on profits made between £8,060 and £43,000 and 2% on profits above the £43,000 threshold.
• Class 2 NICs at £2.80 a week are paid only on profits above £5,965.

 
From April 2018, it has been announced Class 2 NICs will be abolished and Class 4 NICs will remain the same. As a result of this, the self-employed will save £145 annually. This will allow them to keep more of their money and be able to invest it back into their business.
 
Tax Free Dividend Allowance will be reduced from £5,000 to £2,000 from next year April 2018. This is because this will lessen the tax difference between the self-employed and employees. Those that will be affected, will be investors with stocks and shares worth over £50,000 outside an ISA.
 
£435 million will be given to support any business that have been affected by the business rates relief revaluation. Therefore, no small businesses will pay more than £600 coming out of the small business rates relief than they did in year 2016-17.
 
Financing local authorities will permit them to administer £300 million of discretionary relief to contribute in helping the businesses that are heavily affected by the revaluation.
 
Landlords and small businesses below the VAT threshold will be given an extra year to get ready for Making Tax Digital. Businesses that are owned privately (unincorporated businesses) that have a turnover under the VAT threshold will have until April 2019 to prepare for this before "Making Tax Digital" becomes mandatory. 
 
Making Tax Digital is where businesses will have to use a specific digital software to maintain their tax records and update HMRC quarterly (every 3 months).
 
The introduction of this complex digital scheme, which is involving commercial supplies or accounting software, runs smoothly, there is a likelihood that there will be substantial administrative trouble, especially for those businesses that presently do not use an accounting software.

By Gopal Nath at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Small businesses and self employed individuals should be pleased with the chancellor's Spring Budget 2016. Because from 2020, the level of Corporation Tax will be reduced to 17%, less than the previously stated 18%. Making working through a limited company still a very tax effeicient choice. Capital Gains Tax (CGT) will also be reduced to 20% from 28% for higher rate taxpayers and 10% from 18% at the basic rate taxpayers. And the VAT threshold rising to £83,000.

 Key Points for Small Businesses and the Self Employed:

• From the 2017/18 Tax Year, the tax free Personal Allowance will increase to £11,500 and the Higher Rate threshold will increase to £45,000. With government target of £12,500 by 2020. Currently it is £11,000 from this April 2016.
• From April 2020, Corporation Tax for UK Limited Companies will be reduced to 17%. Reduced annually from the current 20% level today.
• Capital Gains Tax is now immediately reduced from 28% to 20% for Higher Rate taxpayers and for Basic Rate taxpayers CGT is reduced from 18% to 10%. This is a drop in tax rates and will help individuals who want to invest in companies or sell assets. Unfortunately though, individuals who own residential properties will continue to pay 18% and 28%, this relief is not extend to them.
• Business Rates Relief threshold is to be increased from £6000 to £15,000 to help small businesses.
• Tax on a Director Loan will increase from 25% to 32.5% with Dividend Tax changes.
• From this April 2016 Dividends taken will only be tax free up to £5000 after which the tax rates are 7.5%, 32.5% and 38.1% (basic, higher, additional rates).
• VAT Registration threshold increases to £83,000 from April 2016.
• From April 2017, New Allowances of £1,000 per annum for property and trading income for very small traders and property landlords eg online trading.
• From 17 March 2016, New Stamp Duty rates introduced for commercial property. This will become up to £150,000 at 0%; between £150,000 and £250,000 at 2%; and over £250,000 at a flat 5%.
• From 17 March 2016, Leasehold properties will pay 2% Stamp Duty if the net present value of the transaction is more than £5 million and above.
• New Tax Avoidance measures to be introdued to stop individuals disguising income as loans and imposing national insurance on termination payments over £30,000 from April 2018.

Other key points are:

• Class 2 National Insurance to be stopped from April 2018, saving of £143 per annum.
• Insurance Premium Tax increased from 9.5% to 10% across all types of insurance premiums.
• A new 25% Top-up ISA for all under-forties who save with the Lifetime ISA. For every £4 that is saved the government will top-up by a £1, to the max value of £4,000 per annum.
• Tax Free Allowance for saving into ISAs has increased from £15,000 to £20,000.
• Reforms of Class 4 NIC so the self-employed pay enough towards state pension entitlement.
• The Annual Investment Allowance (AIA) increased to £200,000. Majority of business can claim AIA towards their investment in assets and stand to benefit from relief.
• New Pay as you go tax. From 2018, small businesses, self-employed, and landlords can elect to pay taxes on a pay-as-you-go basis. Which may help tax payers manage their cash flow better.
• Lifetime Pension Allowance will be reduced from £1.25 million to £1 million.
• Personal Savings Allowance is set at £1,000 for basic-rate taxpayers, £500 for higher rate taxpayers. But additional-rate taxpayers get zero personal saving allowance.

And finally other significant point were:

• From 17 March 2016, Entrepreneur's Relief to be extended to cover investment in unlisted companies. with condition that the shares must be held for more than three years.
• There is also greater loss-relief flexibility for companies from April 2017. Allowing many group companies to offset losses easily with lesser restrictions.
• First-year Allowance of 100% for low-emissions car owners; the car-emissions threshold has been reduced from 75gm/km to 50gm/km.
• More restrictions to offsetting profit with losses carried forward for companies earning profits of £5 million or more.
• The Main Rate of Capital allowances attached to the car-emissions threshold reduced to 110gm/km.
• Employee shareholder Status changes. Employees will receive a lifetime allowance of £100,000 on CGT so that gains of up to £100,000 are tax-free for employee-shareholder status employees.
• NIC Relief on employer-arranged pension advice will increase from £150 to £500
• Legislation to be introduced in Finance Bill 2016 to prevent offshore structures being used to avoid paying taxes on property development.
• Also there is a new Sugar Tax to be introduced in 2 years time.

In Conclusion
Overall, good for small businesses and individuals. Not so great for contractors and landlords.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Surbiton they are considered in the Industry to be experts accountants for small businesses. Helping and supporting business throughout the UK, they regularly help new and established businesses to succeed.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Budget 2015 the key points for you at a glance:

The Chancellor George Osbourne delivered the first 100% Conservative budget since 1996 and here is the all important quick reference guide for all new and experienced entrepreneurs:

Good News:

• Personal Tax free allowance to be £11,000 from April 2016.
• Higher rate of 40% tax to apply from April 2017 to £43,000 up from £41,865 in 15/16 and £42,385 16/17.
• Inheritance tax free threshold to rise to £1 million for property passed on. On other assets passed on there will be increases also phased in from April 2017 where parents will have an extra £100,000 family allowance on their collective £650,000 allowance to pass on to their children. The allowances are as follows: 2017/18 £100,000; 2018/19 £125,000; 2019/20 £150,000; 2020/21 £175,000.
• Corporation Tax Rates to be cut to 19% in April 2017 and 18% in April 2020 from 20% current rate.
• No rise is fuel duty.
• Annual Investment Allowance to be fixed permanent £200,000 from Jan 2016 rather than dropping to £25,000 as previously planned. But this is still a drop from the current rate of £500,000 set to expire in January 2016. But relief from goodwill and other intangible assets is to be stopped from acquisitions. So if you want to invest in more business equipment now is the time to claim more of it against income.
• National Insurance employers allowance to be increased to £3000 from April 2016 a rise from the current £2000. But the allowance will no longer be available for single director employed companies.
• Rent a room allowance to rise from £4250 to £7500 from April 2016.

Bad News:

• Economy grew by 3% in 2104 and is expected to grow by 2.4% in 2015.
• Buy-to-Let mortgage interest payments to be set at 20% from April 2017.
• Dividends rates of tax to be changed from April 2016. A new 7.5% for basic rate tax payers and then 32.5% at the higher rate and 38.1% for highest rate band.
• HMRC budget increased by £750 Million to help claw back money from tax avoidance and tax evasion. Which may mean that there may be more fines being issued to the self employed and small business owners seen as a soft target.
• Insurance Premium tax to rise to 9.5% from November 2015.
• Non Domiciled status to be abolished from April 2017. So any person who has lived in UK for 15 out of 20 years will pay same level of tax as UK Citizens.
• Tax Credits minimum threshold to be reduced from £6420 to £3850.
• Tax credits and new universal credits to be limited to only two children for all those born after April 2017.

Either way News:

• Minimum wage rebranded as National Living Wage and will rise from £6.50 to £7.20 for all workers over 25 years old from April 2016. This will be another cost for employers along with the work placed pension law now introduced.
• No mention about Alcohol and Tobacco duties.
• A consultation to be held into changing Sunday trading laws to allow business to stay open longer.
• New Road Tax bands to be introduced from April 2017.


By Anni Khan at Tax Affinity Accountants.

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they provide a bespoke service to client’s right across the UK and are considered in the industry to be experts.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Growth Vouchers Scheme can be invaluable for business to gain the advice and support needed to expand and grow their profits and business.
This government programme is basically designed to help small businesses get strategic business advice on:

• finance and cash flow
• recruiting and developing staff
• improving leadership and management skills
• marketing, attracting and keeping customers
• making the most of digital technology

Some businesses will be randomly chosen to get a voucher of up to £2,000 to help finance strategic business advice for themsleves.

The voucher can pay for up to half of the cost of the advice from a recognised business adviser such as Tax Affinity Accountants can serve as a real helping hand to boost your business.

It is structured in such a way that the supplier will claim this fee from the programme making it easier for the business owner to quickly get the support and advice he/she needs.


There are some simple eligibility criteria as below:
Your business must:

• have 249 employees or less (including any employees of companies that own a stake in your business)
• be registered in England
• actively sell goods or services
• be independent (ie no more than 25% is owned by other businesses or organisations)
• have a turnover of less than €50 million

And then you will need the following things to complete your application, as available by your accountant:

• Companies House registration number or Unique Taxpayer Reference (UTR) from HMRC
• registered business address
• business turnover details
• VAT registration number (if you’re registered)
• PAYE number (if you have one)
• contact phone number
• email address

A recognised business adviser such as Tax Affinity Accountants will automatically collect this information for you and fill the necessary form as required. You will also be asked to take part in some surveys about the programme by the government body running the scheme.


So how does it work?

Either speak to your chosen adviser and they will make the necessary arrangements for you or sign up on the government’s growth voucher website (open until March 2015).

Once you have received the voucher, simply use it for the advice and support. The growth voucher scheme has been running for few months now and it is growing in success.

However, be careful because the scheme is not intended for company owners seeking to subsidise practical guidance on how to engage in precise tasks relating to running a business. It’s for tactical advice that will lead to growth of the businesses.

The quickest way to get support for the is to call 0800 043 4051 or visit www.taxaffinity.com and speak to one of our experienced business adviser's and growth coaches at Tax Affinity Accountants.

By Tahir Malik at Tax Affinity Accountants

Tax Affinity Accountants are experts in business coaching and are based in Kingston upon Thames they are considered to be experts in their field. Helping and supporting businesses and individuals throughout the UK.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.