Approaching tax deadlines and handy hints!

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  • Capital allowances for commercial buildings - Any capital allowances potentially claimable on integral features and fixtures in existing commercial buildings need to be identified and lodged with HM Revenue & Customs by 31 March 2014 or the ability to make a claim will be lost. Items potentially claimable include lighting, cabling, radiators and air conditioning units.

 

  • Many companies will have a year end of 31 March 2014 and now is the time to consider whether you will be using up your annual investment for £250,000. This is set to reduce to £25,000 on 1 January 2015 and it is important to receive advice from your accountant on how much your annual investment allowance will be next year and the most appropriate dates for incurring the expenditure.

 

  • Personal tax allowances from 5 April will rise to £10,000 a year for the under 65s and £10,500 for the over 65s (65-74 age group). The personal allowance is the first part of earnings on which there is no tax to pay.

 

  • Childcare vouchers can save many parents with kids aged up to 15 over £1,000 a year on childcare which could amount to a free holiday abroad. Frustratingly it is only available via employers, but many large and small companies take part. Speak to your HR department to see if you can make a claim.

 

National Insurance for businesses - From April 2014, the National Insurance Contributions Bill will deliver a £2,000 a year tax cut for businesses and charities.

 

As the National Insurance Contributions Bill is introduced to the House of Commons, the Prime Minister is visiting small businesses in the East of England to hear about the issues that matter to them and highlight what the government is doing to support them.

 

The Bill contains legislation for the Employment Allowance which, from April 2014, will give businesses and charities a £2,000 tax cut off their National Insurance Contributions bill. The Employment Allowance will be of greater benefit to small businesses, as it will reduce their National Insurance Contributions bill the most. Over 90% of the benefit of this allowance will go to small businesses with fewer than 50 employees.

 

  • If you have your own limited company, plan your income for the tax year end of 5 April 2014. We recommend a monthly salary of £640 for a director with monthly dividends of up to £2,500. Dividends can only be paid out of profits so it is important that the company has sufficient profits to cover the dividends.

 

  • This means that each director is able to receive income up to the higher rate threshold of approximately £40,000 (actual £39690) without either the director or the company having to pay any income tax or national insurance. The company though will have had to pay corporation tax at the rate of 20% on its profits before dividends are declared.

 

  • Loans for investing in a business - personal loan - if a director takes out a personal loan and invests that money into the business, tax relief is available on the interest charged by the lender as long as the funds are used for business purposes.