PJM Accountancy // News

 

 

*NEW* Child's Play? The New Rules on Child Benefit:

 

2013 Child Benefit Factsheet PDF

From 2013 changes to the rules on child benefit mean that higher or additional rate taxpayers will be liable to a tax charge. The reforms will affect an esimated 1.2 million households, while thousands of people will be required to complete a self assessment tax return for the first time.

 

Here we consider how the new tax charge will work, along with some key strategies to help you preserve your entitlement to child benefit and minimise, or even eliminate, a potential tax liability.

 

Under the current rules, most people can claim child benefit for children aged under 16 and, in some cases, until they reach the age of 20. One parent can claim £20.30 a week for their first (or only) child and £13.40 a week for each subsequent child, irrespective of their annual income. However, from January 2013 the Government will 'claw back' child benefit from individuals whose income exceeds £50,000 a year. The controversial move is designed to help reduce the budget deficit.

 

- View the New Rules on Child Benefit pdf...

 


 

The 2012 Budget Review:

 

2012 Budget Review PDF

Chancellor George Osborne's Budget statement contained some key announcements on personal and business taxation, including confirmation of a cut in the 50p headline rate of income tax to 45p, to take effect from April 2013.

 

Meanwhile, personal tax allowances were also a significant focus of the Chancellor's speech. With the income tax personal allowance set to rise to £8,105 next month, the Chancellor confirmed that a further rise in the income tax allowance will take place in 2013, taking the allowance to £9,205. Age-related tax allowances have been frozen and will not be available to anyone born after 5 April 1948.

 

Also among the key measures was a doubling of the planned reduction in the headline rate of corporation tax, which will see the rate fall from 26% to 24% in April 2012. The tax cuts announced are to be funded bu a clampdown on tax avoidance, together with the introduction of a new 7% Stamp Duty Land Tax on residential properties worth over £2 million...

 

- View the 2012 Budget Review pdf...

 


 

2011 to 2012 Year End Strategies:

 

2011 to 2012 Year End Strategies PDF

'May you live in interesting times' goes the ancient Chinese curse, and despite regular assurances from successive Chancellors that the tax system is being simplified, as far as tax planning is concerned we live in very interesting times indeed.

 

Complicated by the overlap of 'old' and 'new' rules on matters from pension saving to capital allowances, by changes which take effect part-way through your business year, and by changes which are announced now but do not take effect until one, two or sometimes even three years later, tax today is a minefield...

 

With personal tax rates of up to an effective 60% it would be unwise to ignore the opportunities offered by proper professional tax and financial planning. We can advise on strategies to minimise taxes and maximise the strength of your business and long-term financial health by, for example: making the most of tax breaks for you and your business, planning to extract profits from your business tax-efficiently, making the most of tax advantaged savings (including pensions), reducing the inheritance tax due on your estate...

 

- View the 2011 to 2012 Year End Strategies pdf...

 


 

 

The 2011 Budget Review:

 

2011 Budget Review PDF

In a speech revealing significant cuts in UK growth forecasts, Chancellor George Osborne announced a range of measures intended to boost business enterprise. Among the key announcements was an acceleration of the planned reduction in corporation tax, accompanied by an adjustment in the bank levy to ensure that banks do not pay less tax as a result. The scrapping of £350 million of business regulations and a three-year moratorium on new regulations for firms with fewer than 10 staff were also confirmed, and the business rate relief ‘holiday’ for small businesses will be extended for another year. With the cost of living posing a problem for many British families, the Chancellor confirmed a number of measures aimed at providing support. While a postponing of the planned rise in fuel duty had been anticipated, the Chancellor went a step further by cutting the duty by 1p a litre, and introducing a Fair Fuel Stabiliser, measures which will be paid for by additional taxes on North Sea oil firms. Meanwhile, first-time buyers will be offered further help to purchase new property by means of a proposed shared equity scheme, and help for those with mortgage arrears will be extended. The Chancellor stated his intention to make the UK the ‘most competitive tax regime in the G20’, but also outlined plans to abolish 43 tax reliefs...

 

- View the 2011 Budget Review pdf...

 


 

 

2009 to 2010 Year End Strategies:

 

2009 to 2010 Year End Strategies PDF

The lowest rate of income tax, 10%, was removed for most individuals in 2008. Nowadays it applies only to a small slice of savings income and to those people on the lowest incomes. For most, the 2009/10 tax rates are 20% and 40%, the latter having been the top rate since 1988.

 

From April 2010 a new top rate of income tax is being proposed: 50% on income over £150,000 and 42.5% (up from 32.5%) where the top slice of income is dividends. In addition, from April 2011 those earning more than £150,000 a year may lose higher rate tax relief on their pension contributions. New rules have been introduced to stop those who might hope to use the time before then to increase premiums or contributions to make the most of 40% relief this year and 50% relief in 2010/11. These changes serve to emphasise the importance of proper financial planning. We can advise on strategies to minimise taxes and maximise the strength of your business and long-term financial health through: making the most of tax breaks for you and your business, planning to extract profits from your business tax-efficiently, making the most of tax-advantaged savings (including pensions), reducing the inheritance tax due on your
estate...

 

- View the 2009 to 2010 Year End Strategies pdf...

 


 

 

The Companies Act 2006 (summary of key points):

 

Companies Act 2006 PDF

The Companies Act 2006 received Royal Assent on 8 November 2006, and has been introduced in a series of stages. 1 October 2009 sees the coming into force of the final 500 or so sections of the Act. Many features of company law date back more than 100 years, and are not necessarily suitable for regulating modern companies. The Act acknowledges that a vast proportion of companies registered in the UK are small owner-managed private companies and introduces significant measures designed to modernise and simplify company law and thereby reduce the regulatory burden. The main features of the final set of changes are detailed in this pdf file.

 

From 1 October 2009 the documentation required for forming a new company will be very different. The Memorandum of Association will be a short document, serving the limited purpose of evidencing the intention of each subscriber to form a company and become a member of that company. Companies will no longer be required to specify their objects, and the concept of authorised share capital will be abolished. New Model Articles will be introduced. There will be three types, as follows: Private company limited by shares, Private company limited by guarantee, Public limited company...

 

- View the Companies Act 2006 (summary of key points) pdf...