As we close the books on December and January, Tax Affinity Accountants couldn’t be prouder of the incredible results we delivered for our clients during this crucial period. The Self Assessment deadline for HMRC has come and gone, and once again, our clients are experiencing the benefits of working with a team that not only meets deadlines but ensures the best possible tax outcomes. Our firm’s dedication to providing personalized, efficient, and effective tax services has proven to be invaluable during one of the busiest times of the year.
The numbers are in, and we’ve exceeded expectations across the board. With the highest number of referrals in our history, we are humbled by the trust our clients continue to place in us. Our reputation for delivering outstanding results has never been stronger, and as a result, more and more people are turning to Tax Affinity Accountants for expert guidance on how to save on taxes and maximize their hard-earned money. In this post, we’ll explore how Tax Affinity Accountants rose to the occasion during the Self Assessment season, the satisfaction our clients enjoyed, and why now is the perfect time to consider switching to a tax team that actually understands your needs and can put you on the path to better tax outcomes. The HMRC Self Assessment Deadline: A Busy Period for Accountants and Taxpayers Alike The Self Assessment tax return deadline for HMRC is one of the most significant dates in every freelancer, contractor, sole trader, and small business owner’s calendar. As many people know, the 31st of January is the final day for submitting tax returns for the previous financial year, and the stress of meeting that deadline can be overwhelming. With penalties for late submissions and the risk of costly errors, it’s no surprise that many individuals and businesses turn to professional accountants for help. This past December and January, our team at Tax Affinity Accountants worked tirelessly to ensure that our clients’ tax returns were submitted accurately and on time. Our expert accountants handled a wide range of complex scenarios, from straightforward self-assessments to more intricate tax situations involving multiple income streams, investments, property portfolios, and international tax issues. Regardless of the complexity, we ensured that all our clients received tailored advice and support to help them navigate the Self Assessment process with ease. Our clients benefit from the comprehensive knowledge we have of current tax laws, and we worked diligently to ensure they understood their obligations while also taking advantage of every allowable deduction and relief available. The peace of mind that comes with having experienced professionals in your corner during such an important and stressful time cannot be overstated. Client Delight: Low Taxes, Timely Returns, and Maximum Savings What sets Tax Affinity Accountants apart from other tax firms is our commitment to delivering the best possible outcomes for our clients. Throughout December and January, we received glowing feedback from individuals and businesses who were delighted with the results we achieved for them. By applying our deep expertise in tax planning and optimization, we were able to significantly reduce the tax liabilities of many clients. This is what truly excites us—helping individuals keep more of what they’ve earned. Whether it’s taking full advantage of allowable tax deductions, advising on tax-efficient investments, or utilizing strategies to minimize National Insurance contributions, we’re always looking for new and creative ways to reduce our clients’ tax burdens. One example involved a small business owner who had previously been using a generic online tax software to file their returns. While the software was quick, it didn’t provide them with the tailored advice they needed to make the most of their tax position. After switching to Tax Affinity Accountants, we identified numerous opportunities for tax savings, including business expenses they had overlooked and potential claims for tax relief that they didn’t know about. As a result, the business owner’s tax bill was reduced by a significant amount—enough to reinvest in their business, expand operations, and increase profits. We’ve also worked with several high-earning individuals who were struggling with their tax obligations. By applying a strategic approach to tax planning and ensuring they understood the implications of different income streams, we were able to optimize their tax position and save them thousands of pounds. When clients come to us seeking clarity and guidance, we don’t just meet their needs; we exceed them, delivering tax returns that maximize their savings while ensuring full compliance with HMRC. At Tax Affinity Accountants, our clients are the center of everything we do. The positive feedback and appreciation we received during the January rush are a testament to the hard work we put in and our unwavering commitment to providing top-notch service. Our clients know they can count on us to not only meet the deadlines but also to deliver the best tax outcomes. The Highest Number of Referrals in Our HistoryOur clients don’t just trust us—they recommend us to their friends, family, and colleagues. During the December and January rush, we received an unprecedented number of referrals, making it clear that our reputation for delivering outstanding results is growing faster than ever. Referrals are the highest compliment we can receive, and we take great pride in knowing that our clients are not only satisfied with our services but are so confident in our ability to help others that they actively refer us to people they know. It’s also a sign that more and more individuals and businesses are realizing the value of working with an accountant who genuinely understands their financial goals and strives to help them save on taxes. This year’s increase in referrals is a direct reflection of the exceptional results we consistently achieve for our clients. From freelancers and contractors to business owners and high-net-worth individuals, we’re proud to be the trusted partner that so many people turn to for expert tax advice. And as our client base continues to grow, we’re excited to help even more people take control of their tax positions and keep more of their hard-earned money. Why Switch to Tax Affinity Accountants? If you’re currently working with an accountant who isn’t delivering the results you expect or feel that your tax bills are higher than they should be, now is the perfect time to make the switch to Tax Affinity Accountants. Here’s why:
If you’re ready to take control of your taxes and start working with a firm that truly understands how to maximize your savings, Tax Affinity Accountants is here to help. With our team of experts by your side, you’ll never have to worry about missed deadlines, unnecessary penalties, or overpaid taxes again. Don’t let another year go by paying more than you need to. Reach out to us today for a consultation and discover how much we can help you save. Whether you’re switching from another accountant or looking for a new tax partner, Tax Affinity Accountants is here to provide the expert service, advice, and savings you deserve. Contact us now, and let’s start working on a tax strategy that works for you. Together, we’ll make this year the best one yet! Disclaimer: Tax Affinity Accountants is a leading accounting firm specializing in tax planning, advice, and compliance services. We work with individuals, freelancers, contractors, business owners, and high-net-worth individuals across the UK to help them maximize their tax savings and optimise their financial strategies. Please visit www.taxaffinity.com to learn more about our services and book a consultation. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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.
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On 6th March 2024 the UK Chancellor announced the Spring Budget for the UK. There were quite a few positive changes and the main points to help plan ahead are below:
Child Benefit Changes Starting April 2024, parents will receive Child Benefit as follows: £25.60 per week (£1,331 annually) for the eldest child and £16.95 per week (£881 annually) for additional children. Presently, if either parent's income exceeds £50,000, the High Income Child Benefit Charge (HICBC) takes effect, requiring repayment of Child Benefit once income surpasses £60,000. This necessitates completing a self-assessment tax return. As of April 6, 2024, the threshold rises to £60,000 with a gradual taper, fully recouping Child Benefit when income exceeds £80,000. By April 2026, the clawback assessment will shift to a "household income" basis, pending HMRC adjustments. The 2024 threshold increase will lower the combined tax rate (HICBC, income tax, and NIC) on incomes above £60,000, encouraging parents to earn more. Eventually, transitioning to a "household income" basis should create fairer outcomes for families, albeit HMRC implementation challenges may arise. Changing the Non-Domiciled (non-dom) status and tax treatment The government plans to end the current tax treatment for UK resident non-domiciled individuals (non-doms) starting April 6, 2025. This regime, in place for over 200 years, allowed UK residents with permanent homes abroad to avoid UK tax on foreign income and gains (FIG) unless brought into the UK. It also shielded non-UK assets from Inheritance Tax. As of April 6, 2025, the current remittance basis will be replaced by a new residence-based test lasting four years for those who have been non-UK residents for at least the prior ten tax years. During this period, newcomers won't pay tax on foreign income or trust distributions brought into the UK. However, they'll lose personal allowances and CGT exemptions. After four years, individuals will be taxed like other UK residents on worldwide income and gains. Transitional rules apply: non-doms moving from remittance to arising basis in 2025/26 will be taxed on 50% of foreign income; reduced rates for pre-6 April 2025 FIG remittances till 2027; and Capital Gains Tax rebasing for non-UK assets. Business Investment Relief continues. From April 6, 2025, settlor-interested trusts lose tax protection unless they qualify for the four-year FIG regime. Overseas workday relief remains for the first three years, depending on opting into the new regime. Inheritance Tax shifts from domicile to residence-based from April 6, 2025, with assets within ten years of UK residency potentially liable. UK sited assets remain subject to IHT. These changes simplify the non-dom tax system, but complexities persist. Transitional provisions offer time for adjustment. Current non-doms should consult their Tax Affinity adviser promptly as these are significant changes. National Insurance Class 1 Changes (Employed) Starting from an annual income of £12,570 up to £50,270, employees pay Class 1 National Insurance Contributions (NICs). The rate is currently 10% (down from 12% since January 6 this year). Above £50,270, the rate remains 2% for additional earnings. From April 6, 2024, the main rate will decrease by another 2% to 8%, potentially saving employees up to £63 monthly (£754 yearly). Employers' NICs, at 13.8% over the lower threshold, remain unchanged. This reduction benefits employees and may ease pressure on employers regarding wage hikes. Self-Employment Changes Self-employed individuals pay Class 4 NICs from £12,570 to £50,270 at 9% (dropping to 8% from April 6, 2024). Above this threshold, the rate stays at 2%. Starting April 6, 2024, the rate decreases by another 2% to 6%. This saves £30 for every £1,000 of profit, up to £1,131 annually for those paying at the main Class 4 NIC rate. Class 2 NICs were abolished from April 6, 2024, offering a positive financial change for the new tax year. Capital Gains Tax When you sell residential property and make a profit, you might owe Capital Gains Tax (CGT), except when it's your main home, which is CGT exempt. If the property wasn't always your main home, only part of the gain is taxable. Currently, residential property gains are taxed at 18% for basic rate band profits and 28% thereafter. Starting April 6, 2024, the higher rate reduces to 24% for property sales. Reporting the sale within 60 days from completion is crucial. Sales exchanged before April 6, 2024, may still be taxed at 28%. Landlords affected by the abolishment of Furnished Holiday Lets tax benefits from April 2025 will see changes. From April 6, 2025, furnished holiday lettings will be treated as property investment businesses, losing several tax benefits:
Investments The Budget introduced measures to encourage individual investing and foster a stronger savings culture. Here are the key points:
VAT threshold increased The government is raising the VAT registration threshold from £85,000 to £90,000 and the deregistration threshold from £83,000 to £88,000. These changes start on April 1, 2024. Over 28,000 businesses are expected to benefit by no longer needing to register for VAT in 2024-25. Conclusion Overall this is a much better budget than the previous autumn one presented in 2023. VAT announcement is decades overdue and the drop in NI thresholds don't make that much of a real world difference when price rise percentage is way higher then the percentage drop. And again the goverment did not address any of the large multinationals raking huge profits while small businesses and the public suffer. The sale of Natwest shares in a recession (that the government used tax payers money to bail out the bank recently) needs to be critically analysed more closely as to the effective timing of the sale and real time benefit for tax payers who directly paid for this out of their pockets. At times like these its even more important to have an experience and knowledgable tax accountant in your corner. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. The new UK Chancellor (yes another one...can you believe the UK had 4 Chancellors in 4 months in 2022) has given his first budget. And as before we have refined the main points and facts for business owners including SME's and entrepreneurs. So you can easily navigate and plan ahead with clarity.
The main points from the budget are: 1. Energy price guarantee for homes will remain at £2,500 extended for only 3 months until end of June. It was set to rise to £3,000 but that has now been cancelled. And no new support announced for business bills. 2. Corporation Tax for a limited company will rise from 19% to 25% from 6th April 2023. Small company's with profit of less than £50k will still pay the lower 19%. But companies with profits between £50k to £250k have to pay between 19% and 25% but are allowed to claim marginal relief. Company profits over £250k will be taxed at 25%. And companies with group ownership of other companies may end paying close to 26.5% (effectively) because the corporation tax for Group Companies was increased also - sadly all important details missed by the main stream media. 3. Tax-free yearly allowance for pension cash out to rise from £40,000 to £60,000 after being the same for the past 9 years. 4. Fuel duty (tax) frozen so the 5p cut to fuel duty/tax on petrol and diesel which was due to end in April, has been extended for another year. 5. Maximum amount a worker can accumulate in pensions over their lifetime before paying extra tax currently £1.07 Million will be cancelled. Now there is no limit. 6. Tax on tobacco to increase by 2% above inflation for normal and 6% above inflation for hand-rolling tobacco. 7. Those who are already drawing down on their pensions, the total amount they can save tax free under the Money Purchase Annual Allowance is increased from £4,000 to £10,000 from April 2023. 8. 30 hours of free childcare for working parents in England expanded to cover 9 months to three year olds. 9. New £600 "incentive payment" for people becoming childminders, and the rules have been changed in England to let childminders look after more children. 10. Immigration rules to be relaxed for five roles in the construction sector, to ease labour shortages in the Industry. These categories are:
11. Super deduction of 130% will end on 31/03/23 and move back to 100% AIA for plant and machinery purchased and can be used directlty against corporation tax payable. A list of typical purchases is lasting until 31/03/26:
If your worried how these will effect you and need more specific guidance to help your business carry on growing during turbulent times then contact one of our Tax Affinity expert business advisors today (click here). With their countless years of knowledge and expertise they can guide your business to success even in the toughest of economic conditions. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. With only a few working days left. This is an important reminder that if you have not already had your 2021-22 personal tax return done. All 21/22 tax returns (self assessments) need to be calculated & submitted to HMRC before the 31st January 2023 and any tax payable for the year to be paid by that date also. And we recommend this is urgently done and you contact us today. If you had it done or do not need it then ignore this reminder.
As per last year HMRC is saving money & will not send postal reminders. They now choose instead to collect money through letters of fines for missed deadlines saying 'all tax payers should be aware of the self assessment deadline, and not expect HMRC to remind them'. With fines starting at £100 rising to £1300 plus interest for late filing and payment even if you had no tax to pay, there really is no excuse to not have it done as soon as possible so get in touch today and ensure its calculated and declared by professional tax accountant, someone who will make sure to look after your best financial interests while freeing you up to concentrate on the things your love. To complete the 2021/2022 self assessment you will need the following information:
Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. On 17/11/2022 Jeremy Hunt the Chancellor for the UK Governments expressed their plans for the coming year and the contents of his autumn budget. As before we have read thorugh the detailed report and listed the main bullet points for small business and the self employed.
Personal Income Tax There are no changes to the personal tax thresholds. And they will remain at the current level until April 2028. This also includes the National Insurance Contribution threshold for PAYE and self employed. Minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from April 2023 Company Dividend Tax-Free Allowance (DIV) The dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023. And this will be reduced even more in 2024-25 to £500. Additional Rate of Income Tax (Higher Tax band) From April 2023, the higher rate band will be reduced from £150,000 to £125,140. Which means anyone earning above £125,140 will now be taxed at the 45%. Apart for Scotland. Annual Investment Allowance (AIA) The Annual Investment Allowance will be permanently set at £1 million to help promote growth in the economy. Corporation Tax (CT600) From April 2023, the Corporation Tax is due to increase to 25% if a company’s profits exceed £250,000. Companies whose profits are between £50,001 to £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at the current level of 19%. Capital Gains Tax-Free Allowance (CGT) Also rumoured before the budget, the threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. Similarly to the dividend allowance, a further reduction will be seen in 2024-25 to £3,000. Employment Allowance (Employer NIC) The Employment NIC Allowance will stay at £5,000 meaning that eligible employers. Road Tax Electric cars, vans and motorcycles will start to pay road tax from April 2025. Energy The household energy price cap has been extended for one year beyond April 2023 but has been made less, with typical bills capped at £3,000 instead of £2,500 a year. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. UK Chancellor, Kwasi Kwarteng announced a series of tax cuts & changes in his mini-budget on 23rd Sept 2022, and yesterday did a U-turn on cancelling the drop from 45% to 40% on the highest tax rate. A quick list of how the mini-budget will affect tax payers is listed below: 1. Income taxes The top rate of income tax for those earning more than £150,000 per annum was reduced from 50% to 45% by a previous Chancellor in 2013 this was planned to be lowered to 40% but has now been cancelled by the government U-turn and will remain at 45%. From 6th April 2023 the rate of income tax on income between £12,571 & £50,270 per annum will be reduced from 20% to 19%. 2. National Insurance reversal Chancellor confirms the 1.25 percentage national insurance rise introduced earlier this year by the previous Chancellor will be cancelled from 6th November 2022 i.e. from December’s payslip onwards. 3. Stamp duty cut Before there was no stamp duty to pay on the first £125,000 of a property’s value. It has now been doubled to £250,000. The no stamp duty threshold for first-time buyers will rise from £300,000 to £425,000. The max property value for first-time buyers’ stamp duty relief will rise from £500,000 to £625,000. 4. Corporation tax stays at 19% Corporation tax rises have been scrapped, the previous Chancellor Rishi Sunak announced that the rate of corporation tax would be increasing from 19% to 25%, from 6th April 2023. So now businesses with profits below £50,000 will stay at the 19% rate, as well as businesses with profits over £250,000 that were meant to pay 25% rate ie everyone stays at 19%. 5. Changes to IR35 From 6th April 2023, the previous IR35 rules introduced in 2017 and 2021 have been reversed. Allowing individuals to contract instead of work as employees again ie self employed off-payroll working through a limited company. The changes mean its up to the contractors themselves to make sure they have the right status and are paying the right amount of tax instead of putting the burden on employers. 6. Strikes legislation The government says it will legislate to stop “militant trade unions” from closing down key infrastructure through strikes. The laws will require unions to put pay offers to a member vote, to ensure strikes can only be called once pay talks have genuinely broken down, he says. 7. Investment zones The government confirmed that almost 40 investment zones will be created with tax breaks for businesses. Areas included are the West Midlands ,Tees Valley, Norfolk and the west of England etc. 8. Energy Bills Freeze household energy bills at £2,500 for a typical household and a price cap on energy bills for commercial properties also. 9. Investment (AIA) Annual investment allowance, the total amount a company can invest tax free, stays at £1 Million. New & start-up companies are able to raise up to £250,000 under a scheme giving tax relief to investors in their business Share options for (PAYE) employees doubled from £30,000 to £60,000 10. Bankers’ bonuses Chancellor confirms the bankers’ bonus cap will be scrapped. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. HMRC relishes the idea that tax payers will make errors in their tax returns and then they will pay higher taxes or be fines for making errors. The number of errors by members of the public doing their own self assessments has been rising steeply in the last few years and HMRC has been raking in fines for errors. So its very important to try to ensure you make none.
Why? - Well simply mistakes on your tax returns could cost you a lot of hard earned money. Solution? - Avoid HMRC penalties and charges by making sure you don’t commit these mistakes during tax return time by getting an expert like Tax Affinity Accountants (one the most highly recommended accountants in the UK) to do calculate and submit the return for you and sleep easy at night knowing you paid the least tax and everything was correct according to HMRC rules. Key things to keep in double check:
A good tax accountant should save you much more in tax than what he/she charges. And having a Tax Affinity accountant calculate your personal and business tax situation will lead to zero mistakes on your return and a lower tax bill first time every time. Fill out our contact us page to find an office near you and we will be happy to help you sleep easier at night. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. We love a list that gets right to the point. So here is our key points for businesses in the UK from the Chancellor's autumn budget 2021:
1) Dividends: rise of 1.25% tax after nil band from 7.5% to 8.75% and higher rate band up from 32.5% to 33.75% from April 2022 2) Capital gains tax (CGT): with immediate deadline to report & pay after selling a UK residential property has increased from 30days to 60days after completion date. Giving landlords more time 3) Corporation tax: will rise from 19 % to 25 % from April 23. Businesses with profits less than £50k will get a small profit rate which is still 19%. For profits above £50,000 there is a tapered rate with bands & %’s going up to the 25% rate. 4) National insurance: Increase 1.25% national insurance contribution for all (employees, employers & self-employed) from April 2022. 5) National living wage: increase from £8.91 to £9.50 p/hr. 6) R&D tax relief: to be expanded to cover cloud computing & data costs now also as well. 7) Business rates : Rates revaluation cycle changed from 5 years to 3 years from 2023. New Improvement Relief, for businesses to improve/extend property, meaning they won’t pay additional business rates in 12 months after improvements. Plus a 50% business rates discount from April 2022 (to max £110k) for 1 year for retail, hospitality & leisure. 8) Annual investment allowance (AIA): £1m Annual Investment Allowance (AIA) extended to March 2023. If your business is effected by these changes and you want help and support contact us today By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. We have a lot of limited company owners asking about IR35 - the HMRC rule about removing some rights to work as a limited company personal service provider and be counted instead as an employee due to pay tax and ni at the PAYE tax rates.
Obviously many consultants and contractors are worried that they will end up having to pay more tax some at 40% higher rate of income tax rather than the 19% corporation tax previously paid on their limited company. So we have compiled a simple questions & answer to help answer common questions that arise: Q. As a consultant / contractor, can I work inside and outside IR35 on different jobs? A. Yes. It is possible to have one job found outside IR35 and another to be inside IR35. Each job will be assessed on its own merits as per the IR35 status tests. IR35 applies on a case-by-case basis. Q. If I accept an job inside IR35, will I be worse of financially? A. Yes. An inside IR35 job means you have to pay all PAYE/NIC deductions as per a normal employee on all your gross income. This will be made at sourc and have a direct impact on your take-home pay. If you were working through your own Limited company previously. You were paying tax on net income (after expenses). However, there are options such as re-negotiating and increasing your day rate, looking for contracting work that is considered outside IR35. Working for more than one company and making sure your paperwork proves your outside IR35. Contracting through our purpose built umbrella company to help clients. We have many options available. Q. If I disagree with my status given, is there anything I can do to challenge it? A. Yes. When your client has assessed your IR35 status they should provide you with a Statement Determination Statement (SDS) which will detail the reasons for your Outside/Inside IR35 status. Once you have received this, you can dispute the determination. The client has 45 days to respond. If you choose to dispute your IR45 status, we recomend you gather evidence to support the reasons which you believe the decision is wrong. Q. Will HMRC be looking to recover backdated tax for previous jobs it deems to be inside IR35? A. No word yet. When the client decides your inside IR35 after April 6th 2021 it means that they have to make the PAYE & NI deductions after that date. If you were in the engagement prior to 6th April, the responsibility for IR35 remains your own. So, your status before will remain be your responsibility and can hold a retrospective liability risk. HMRC has previously said it will not proceed with targeted campaigns of those who have had a change in status and IR35 was first started in the public worker sector such as NHS and local authority previously and this was not the case then. Having seen many clients go through this a couple of year ago when IR35 was introduced to public sector worker. We managed to successfully guide most of them to a tax efficient solution. So are now very experienced to help the new batch of private sector IR35 workers after 6th April 2021. Get in touch today and we will be happy to help you keep more of your hard earned money. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. UK Spring Budget 2021 key points for business owners & SME's
At Tax Affinity we believe in improving the financial lives of every person in the world. Each time the UK treasury government makes budget announcements we spend time reading through the information to help our clients support our clients with the best information to drive their businesses forward even during a down turn. The key points are listed below for a quick guide:
By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. 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. |
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