Local Life – May 2014 – Guide to Business Finance
CMA Accountancy – Hands On Guide to Business Finance
CMA is a proactive accountancy firm based in Appley Bridge. We provide the usual services such as company accounts, personal tax, VAT and payroll services. We can also help you with your bookkeeping if you prefer to focus on growing your business and hate doing this!!
This month we are reviewing a few recent announcements that affect individuals and businesses.
• Personal Allowances increased to £10,000 for everyone from 6th April 2014. It is important to check that you have the correct tax code on your wage slip. The personal allowance will rise to £10,500 in April 2015.
• RTI Penalty Update – Some employers are struggling to get up to speed with this and therefore HMRC have delayed implementing automatic penalties until October 2014. CMA offers a full outsourced payroll service for businesses who wish to hand this responsibility over.
• Homeworkers and Travel Expenses– A recent HMRC tribunal held that some journeys for homeworkers may not be allowable for tax purposes. If you fall into this category and need advice please contact us for more information.
• Company Car Drivers – The tax paid on the benefit of having a company car will increase. There are incentives for choosing a car with low CO2 emissions and these should be looked into when selecting your next car.
• Business Capital Allowances – The amount of money a business can spend on capital equipment has increased to £500,000 per year. This is a very important area for tax planning if you are a small business and can save you £000’s if implemented correctly.
• VAT – The main rate of VAT remains at 20%. If you are a business, the threshold for registering for VAT has increased to £81,000. If you are starting a new business then don’t forget to consider the flat rate vat scheme as this could save you both time and money.
Tax Tips of the Month
• Are you a business and employ staff?
From 06 April 2014 all employers qualify to receive a £2,000 Employers Allowance that may be offset against Employer’s NIC, so reducing the cost of employing staff. If you need details of this scheme please contact CMA for further advice.