New Changes to Payslips and Payroll from April 2019

For business owners, keeping up-to-date with changes to payslips and payroll is important. As of April 2019, new changes will mean that you will have to become well-versed in payroll legislation. There are some changes to payslips, pension contributions, increases in statutory family-related pay and statutory sickness pay. Also, adjustments to redundancy pay calculations and post-graduate loan repayments means it’s vital to understand the requirements you need to adapt to. In this article, we’ll cover:

  • What are the latest payslip changes from April 2019?

  • Pension contributions

  • National Minimum Wage changes

  • Statutory family-related pay and statutory sick pay changes

  • Redundancy payment calculation adjustments

  • Postgraduate loan repayments

  • Finding help with payslip and payroll changes

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Nick Bagga
New Rules on VAT Treatment of Supplies in Construction

In 2018, HMRC introduced new draft legislation for VAT treatment of supplies in the construction industry. As of 1st October 2019, the new Construction Services Domestic Reverse Charge (CSDRC) regime will come into effect for various supplies in construction. This will impact upon construction services businesses and how to account for VAT on some transactions. It may influence whether your business meets the threshold for VAT registration with HMRC. These proposed changes are set to pose some interesting questions, including:

  • Which supplies are covered by Construction Services Domestic Reverse Charge (CSDRC) VAT changes?

  • Which goods and services are excluded from the change?

  • Accounting for changes in VAT treatment of supplies in construction

  • How does this impact upon construction businesses?

  • What action should you take as a construction business?

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Nick Bagga
What to Consider when Choosing your Accounting Software

For any business owner, selecting the right accounting software is a key decision. Having control of your books and access to timely financial data is essential for a modern business. With such a range of packages to choose from, knowing where to start can be somewhat confusing. In this article we will break down important points to consider when looking at your choice of accountancy software. This includes:

  • Selecting accounting software based on your needs

  • Picking cloud accounting software

  • Is your accounting software MTD compliant?

  • Keeping your budget in mind

  • Other things to consider

  • Making a choice on accounting software

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Nick Bagga
What are the Key Changes to taxes for the 2019/20 Tax Year?

Following announcements made in the Autumn Budget 2018, changes were set out for the new tax year starting on the 6th April 2019. It’s important to understand what these new tax rules are so you can adjust accordingly. A failure to take into account increases or decreases in tax rates and thresholds could mean miscalculating your expected tax bill in the future. This article will break down key tax amendments for the 2019/20 tax year, including:

  • What changes are taking place regarding Personal Taxes?

  • Income Tax allowances and thresholds for 2019/20

  • Capital Gains Tax annual exemption

  • Business Tax adjustments to take note of

  • Charity Tax rules to prepare for

  • Finding out how tax changes in 2019/20 impact you

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Nick Bagga
Entrepreneurs’ Relief and How to Make the Most of it

In our previous article we looked ways in which you can make the most of any surplus cash held in your business. Following on from that, we want to look at another tax allowance which is available to sole traders or partners and even company directors: Entrepreneurs’ Relief. If you have built up significant retained profits or have seen a rise in the valuation of assets in your business, you might wish to use Entrepreneurs’ Relief to your advantage, now or in the future. The rules for this are changing – so how does it work? In this article, we’ll cover:

  • What is Entrepreneurs’ Relief?

  • Rule changes announced in the 2018 Autumn Budget

  • Will Entrepreneurs’ Relief on the sale of EMI shares be affected?

  • Should you use Entrepreneurs’ Relief for winding up?

  • Making the right decision

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Nick Bagga
What can you do with Surplus Cash in your Company?

When running a company, it’s possible to have surplus cash left over at the end of a year. With regards to a private limited company, you might not be sure how to best use that money. However, there are many things to bear in mind about making it work to your advantage, such as the impact any decision might have on tax. In this article, we’re going to take a closer look at what you could do with surplus cash in your company. What is surplus cash, exactly? And how can you put it to good use? In this article, we’ll cover:

  • What is surplus cash?

  • Dealing with surplus cash appropriately

  • Investing your surplus cash in bonds and shares

  • Buying and renting properties

  • Pension contributions from a cash surplus

  • Establishing a retirement company

  • Distributing it to shareholders as dividends

  • Making the right choice

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Nick Bagga
Using your Dividend Allowance before 5th April 2019

With the 2018/19 tax year end just around the corner, it’s important that you take advantage of your tax-free dividend allowance. If you haven’t yet made use of dividends as a way of drawing money from your company, then you are running out of time to do so for this tax year. In this article we will look at:

  • Using your £2,000 dividend allowance

  • How does your dividend allowance work with your personal allowance?

  • Can you pay your dividend out of profits and losses?

  • Getting the help that you need when handling the tax year end

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Nick Bagga
Using up your Tax Allowances by 5th April 2019

As the 2018/19 tax year end comes closer, you may still have some tax allowances that you haven’t taken advantage of or fully utilised. No one likes to pay out more than they need to, especially when it comes to paying the taxman. There are numerous ways you could make a legitimate tax saving, which include benefiting from allowances such as those on charitable donations and payments into a pension scheme. In this article we will take you through the key allowances:

  • Charitable Donations

  • Pension Allowances

  • Personal Allowances

  • ISAs

  • Married Couples and Children’s ISAs

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Nick Bagga
Pension Deductions Increase: How will the April pensions increase affect me?

At regular intervals, a pension deductions increase will come into place. Other times, though, this may decrease. However, this year, we’re expected to see a significant increase in the amount of money being deducted from pay to go towards your pension. These new pension increases can be confusing, so we’ve tried to cover everything you’ll need to know. This includes:

  • What are pension deductions?

  • Why are pension deductions put in place?

  • Why do pension deductions change?

  • How should I deal with pension deduction increases?

  • Benefiting from a pension deductions increase

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Nick Bagga
Making pension contributions from your limited company

When running a limited company, you should take into consideration what pension contributions you can make. While finding tax deductible expenses that you can legitimately claim can feel like a challenge, pensions as a business expense are both justifiable and worthwhile. By contributing to a pension plan, you can find several beneficial tax advantages. Not only that, but pensions in a limited company will it help you to protect your long-term future. In this article, we’ll cover:

  • Why you should set up pension contributions

  • Pensions in a limited company

  • Pensions as a business expense: is this allowed?

  • Getting help setting up your pension fund

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Nick Bagga
What are the best ways to pay yourself as a business owner?

For many professionals, spearheading their own business is the ideal long-term objective. Working for yourself, and for your clients, is always an enjoyable experience. However, when setting up your own company, it pays to be vigilant with regards to paying yourself. There are a few options that you could use to pay yourself and ensure you can earn a living from your business. In this article, we’ll look at:

  • Paying yourself as a business owner

  • Salary or draw? What’s the best option?

  • PAYE and dividends

  • Making the right decision for your business

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Nick Bagga
Top tips for getting started as Self-employed

Are you looking to work for yourself and utilise your skills as a self-employed professional? It’s easier than you think. Registering, and running, as self-employed in the United Kingdom is much simpler today. However, to run your business properly, you need to take into account a few important factors, including:

  • What makes you self-employed in the United Kingdom?

  • Registering your self-employed business properly.

  • Getting to grips with taxation as a self-employed professional.

  • Dealing with cash flow when self-employed.

  • Preparing for the future.

  • Bringing in the right assistance.

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Nick Bagga
What are the benefits of running a limited company?

Running a business can be challenging, especially when it comes to the business structure. Many businesses choose to ignore the opportunity to incorporate their business into a limited company, without realising the various benefits a limited company has to offer. In this article, we’re going to look at the benefits of running a limited company, which includes:

  • Ease of set-up

  • Reputational gains

  • Tax benefits

  • Limited liability

  • Finding funding

  • Pension assistance

  • Making the right decision

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Nick Bagga
Annual Investment Allowance (AIA) Claiming tax relief on equipment expenses the right way

Claiming tax relief on your equipment expenses can be a confusing process. If you are trying to work out your capital allowances to populate the right boxes on your tax return but aren’t sure on where to start, this guide will help you to pick up some of the most important do’s and don’ts. It’s very easy to miscalculate or misinterpret what you can and cannot claim back for tax relief. Here, we’ll do what we can to help you make smart choices on equipment expenses. To do this, you need to use what is known as your Annual Investment Allowance (AIA). In this article, we’ll cover:

  • What is your Annual Investment Allowance?

  • Is there an Annual Investment Allowance limit?

  • Who can claim Annual Investment Allowance?

  • How can I make my claim?

  • Things to consider about Annual Investment Allowance

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Nick Bagga
How to tell if HMRC messages are genuine

To run a successful business, you need to have consistent contact with the most important institutions. While keeping regular contact with suppliers and clients is important, contact with the government is essential. However, when HMRC reaches out to you, how can you tell if the correspondence is genuine or not? The web poses many risks for those who are not careful. To help you avoid phishing scams disguised as government correspondence, we’ll cover important issues such as:

  • Ways HMRC might try to contact you

  • What kinds of HMRC messages could be fraudulent?

  • How to deal with a potentially fraudulent HMRC message

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Nick Bagga
When is the 2018 Tax return deadline? How can I avoid HMRC penalties?

As we move into a new year, the 2018 tax return deadline is just a few short weeks away. With that in mind, it’s crucial that you get your tax return filed as soon as you possibly can. Otherwise, you face the risk of penalties. In this article, we’ll look at important factors such as:

  • When is the 2018 tax return deadline?

  • Why do I need to send a tax return?

  • What happens if I miss the deadline?

  • What should I do if I miss the deadline?

  • Getting professional help

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Nick Bagga
Tax implications for Christmas parties for employees

While the Christmas party might be one of the highlights of the year, it’s important to take the tax implications into account. Making sure you address the following points will help you to make the most of that Christmas party. Now, when everyone is having fun, you won’t need to worry about a thing. Key points to consider when it comes to the tax implications of the Christmas party include:

  • Should my company throw a Christmas party?

  • Is the Christmas party a viable business expense?

  • Is there an annual limit on entertainment costs?

  • What are the potential VAT implications of having a Christmas party for employees?

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Nick Bagga
Tax implications for Christmas gifts to clients and staff

As a business, it’s nice to reward staff for their hard work and commitment to your business. However, many businesses will choose to pick up Christmas gifts for clients and staff as a potential tax benefit. While well-intentioned, it’s easy for a good gesture to become problematic. To help you avoid this, we’ll cover key Christmas gift tax issues such as:

  • Can my business claim tax relief on Christmas gifts?

  • What are benefits in kind for Christmas gifts?

  • Why might my gift be rejected by HMRC?

  • The VAT implications of Christmas gifts

  • Getting help with your Christmas gift tax issues

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Nick Bagga
Gift Aid for Charities: How to best handle gift aid

Many charities in the United Kingdom look to use gift aid to benefit themselves and others in equal measure. However, it’s easy to misunderstand what this service offers you – and why it should be something to consider. Here, we’ll take a look at important information such as:

  • What is gift aid?

  • How does gift aid for charities work?

  • Things to consider

  • Finding the right expertise for gift aid

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Nick Bagga
Brexit for Business: What are the present implications?

The United Kingdom leaving the European Union (EU) is, without doubt, the biggest political event in decades. Ever since UK entry into the EU, however, there has been a lack of understanding and detail about how the partnership works. With the exit more likely than ever to take place, it’s still unclear just how exactly an exit from the EU would impact upon British VAT-registered businesses trading within the EU. We’ll take a look at the potential ramifications to come, including:

  • Registering for EORI

  • Arranging supply & shipping

  • Finding the correct expertise

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Nick Bagga