The Ultimate Need-to-Know Guide to Dividend Tax Rules

• Dividends received by pensions and ISA’s are unaffected. • Dividend income is treated as the top band of income. • From April 2017, the notional 10% tax credits on dividends is abolished. • The tax-free dividend allowance will be £2000 from 2018/19. Dividends above this level are taxed at 7.5% (basic rate), 32/5% (higher rate) and 38.1% (additional rate). This mostly affects those who work in very small family businesses, in particular couples who split incomes. • Individuals who are basic rate payers who receive dividends of a larger amount than £5001 must now complete self-assessment returns. • The
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VAT Flat Rate Changes – Implications for Low – Cost Traders

VAT Flat Rate Changes – Implications for Low – Cost Traders April 2017 saw changes which mean that small limited companies who have low annual costs face a higher VAT liability if they are using the flat rate scheme (FRS). Unlike the standard VAT scheme, the FRS makes calculations simpler for users. VAT liability would be calculated by applying a fixed percentage to the turnover of a company. The percentage differs dependent on the trade of the company. For example: Client invoice = £1000 + 2-% VAT You owe HMRC 14.5% x £1200 = £174   Those using the FRS
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Auto-Enrolment Minimum Contribution is Changing. Here’s What You Need to Know:

Auto-enrolment- new minimum %s from 6/4/18 New regulation means 1.8 million small business owners in the UK will have to offer an auto-enrolment pension scheme for employees. Auto-enrolment makes it compulsory for employers to enrol eligible workers into a pension scheme, paid into jointly by both the employee and employer. As it currently stands the auto enrolment minimum contribution is 2% of which 1% must be paid by the employer, however in the tax year to come this is set to change: 06/04/18 – 05/04/19: Minimum contribution will be 5% (including 2% minimum employer contribution and 3% staff contribution). 06/04/19-
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What do I want with a Chartered Accountant?

Chances are – you don’t. There’s a lot of ballyhoo put about to the effect that in order to keep HMRC at bay you need to engage a Chartered Accountant to look after your affairs.  Curiously, most if not all of this noise is made by Chartered Accountants themselves, the ones with most to gain from it. What is a Chartered Accountant? He (or she) left University with a completely irrelevant degree.  It might be in ancient Sanskrit, Hebrew mythology or the history of Derbyshire County Cricket Club.  Doesn’t matter, all he has to do is demonstrate that he can
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Employers and the new National Living Wage

From 1 April 2016 workers aged 25 and over will be legally entitled to a new minimum pay rate of £7.20 per hour, called the National Living Wage (NLW). As an employer you’ll need to check which staff are eligible for the new rates and update your payroll in time. You’ll most likely have lots of questions. If you need help or advice on this get in contact with us today on 01427 613613 or info@abc-accounting-services.co.uk
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Mandatory online filing of CIS returns and verifications

Over 85% of contractors and their authorised agents are already sending us their CIS returns online, but from April 2016 everyone will have to use the online service.  HMRC will no longer be accepting any paper forms from that date.To increase filing accuracy, this change will see the introduction of online amendments, online messaging and alerts.We’re also improving the online verification service for you, as from April 2017 everyone will also have to use the online service, HMRC will no longer accept telephone verifications from that date. For contractors and agents currently sending paper returns, you’ll need to register for
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Gainsborough DN21 Awards Celebrating Excellence in Business Tonight

You may have heard us talking about the DN21 Awards. We were excited to be a part of them initially because they represented something positive for Gainsborough business. Our excitement grew when Belinda herself and The Studio Gainsborough were shortlisted for two awards. The event will be held as a result of a partnership between the towns focal shopping centre, Marshalls Yard and Trinity Football Club. They are keen to recognise great businesses that enhance their community and add something worthwhile to the local landscape. There will be ten awards handed out during the event held at The Blue’s Club.
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