According to sources reported in The Telegraph, the Treasury is considering the dividend allowance in the Autumn Budge 2018, which will be released on the 22nd November 2018. It will be no shock to most if cuts are once again made against business owners, directors and shareholders hand. The same was done in the Autumn Budget 2017 when the dividend allowance was cut from £5,000 to £2,000.
Cuts would be supposedly made in an effort to help fund a government pledge to increase spending on the NHS. The report has triggered a reaction from the Federation of Small Businesses (FSB), who have estimated that the Treasury would raise £1.3billion by 2022 by removing the dividend allowance.
How will dividend cuts affect business owners, directors and shareholders?
Business owners, directors and shareholders use the dividend allowance to extract profits from their business. The more the dividend allowance is reduced the less the strategies for tax efficiency.
Over 50,000 contract workers have been subjected to backdated tax demands of hundreds of thousands pounds. This is after a pursuit put in place by a controversial loan charge aimed to claim back-unpaid taxes from as far back as 1999.
The IR35 is a combined of legislation that is designed to asses whether a contractor is a genuine contractor or an employee for tax purposes. Contractors that work through their limited company enjoy many tax perks, such as claiming expenses against tax, which cannot be enjoyed as an exclusive employee to a company. Contractors also do not have access to many of the perks of employment, such as holiday and sick pay.
The HS2 project is one of the most demanding and exciting transport currently active in Europe. The project has set out to build a railway that will form the new backbone of Britain’s transport network.
The HMRC has continued its crackdown on tax avoidance this tax year, with a record amount of investigations into British taxpayers offshore assets and income; which have been followed by the HMRC’s record net income of £560million.
With the rise of the IoT, AI, AR, Fintech and much more, comes the rise of software engineers. A software engineer is an individual who develops various applications that enable users to accomplish tasks. Like all professions, software engineers come in the form of either employed or self-employed.
Software engineer’s salary bracket is regarded as one of the highest in the UK ranging from around £30,000 to £300,000, depending on seniority and ability. This means that many fall into the tax filing bracket whether they are self-employed or not.
Over the past 5 years the general UK population’s rise in concern and consciousness for the environment is undeniable. From youth climate change protests to the suggested conversion to veganism to help the environment; climate change activism can be seen in all walks of life in the UK.
This article will focus on how UK taxes are joining in on the effort to help the environment.
With 51% of businesses expressing desires to expand over the next year, UK unemployment levels have fallen to its lowest point since 1974. Below are some of the fastest growing sectors for employment.
This article if focused on explaining pay for UK employees and the process of reading pay slips.
As an employee you should be told by your employer how much you will be paid, the date of your payment and the medium of payment i.e. by cheque or bank transfer.
As an employee, unlike contractors or freelancers, you have the right to receiving a payslip. This can come in a paper or online form.
With the ongoing US tax crackdown on US expats, comes the demand to file FBARS. An FBAR or FinCen is used to report foreign bank and financial accounts. Within the FBAR you must report all foreign bank, securities and financial instruments.
The 2018-19 tax season is in full-swing and tax payers can now file there returns ahead of the 31st January 2020 deadline. It is advised by the HMRC to get tax returns filed as early as possible, to ensure that the deadline is met. As an added incentive to taxpayers, we, at Bambridge Accountants, offer a discount to those who file between April and August 2019.