Income Shifting
Legislation has now been deferred to April 2009 at the earliest.
From April 2009 it will be far more difficult to reduce your tax bill by paying dividends or profit shares to less active shareholders in your company or members of your partnership. This is because of a new law on income shifting that will affect nearly every partnership and jointly owned company in the UK. It doesn't matter whether those co-owners (partners or shareholders) are married, other relatives or simply friends.
Changes to pre-budget proposals for CGTax
The Chancellor has at last announced major changes to his original Pre - Budget Proposals for CGTax.
He has introduced:-
- A new entrepreneurs relief
- A new lower 10% tax rate
- A new £1 million lifetime allowance for entrepreneurs
The relief will apply to disposals of all or part of a trading business and trading partnerships. There is also relief for the sale of shares in a trading company subject to certain restrictions.
No changes will be made to the CGT annual exemption.
For further advice or help contact us.
Income Shifting is Coming Soon!
From 6 April 2008 it will be far more difficult to reduce your tax bill by paying dividends or profit shares to less active shareholders in your company or members of your partnership. This is because of a new law on income shifting that will affect nearly every partnership and jointly owned company in the UK. It doesn't matter whether those co-owners (partners or shareholders) are married, other relatives or simply friends.
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 penality regime came into force from October 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.
