3 Month Rule
You are obliged to register with HM Revenue & Customs within 3 months of commencing self employment or face a £100 fine.
VAT Fixed Rate Scheme
It could be that this scheme could make you more profit if your VAT input tax recoverable is less than the national average for your trade. Contact us for the details of the scheme and applicable rate so you can check if it's worthwhile
New Subcontractors Scheme
The penalty regime is now in force for late returns and will now apply on a monthly basis. If you want us to do the filing of returns online for you contact the office.
VAT
The standard rate of VAT will be 20% from 4th January 2011.
Capital Gains Tax - Recent Changes
From 23rd June 2010 for none business assets the rules go back to pre 2008 require with gains being added to your annual income to decide the rate of tax payable. If the taxable gains after claiming the annual exemption of £10,100 (applicable for 2009/10 and 2010/11 tax year) fall in the basic rate band the tax rate is 18%. If they fall into the higher rate tax band the rate is 28%. The 28% rate will only apply after the basic rate band is fully used.
Entrepreneurs Relief
This is raised with effect from 23rd June 2010 to a lifetime figure of £5 million (presently £2 million from 6th April 2010 to 22nd June 2010 and £1 million from 6th April 2008 to 5th April 2010). Normal annual exemptions also apply. If you want any advice over future business sales, please contact us.
Corporation Tax
Small companies rate is reduced to 20% from April 2011. Currently it is 21%.
Capitol Allowances - Annual Investment Allowance
From April 2012 the rate at which the capital cost of plant and machinery can be written down will fall from 20% to 18%. The annual investment allowance will also reduce from the current allowance of £100,000 to £25,000. You will still be able to claim 100% of cost in the year of purchase. This is an extremely useful tax planning tool and major expenditure should be considered or implemented before April 2012.
