COVID-19: what is the support available for businesses?
The Chancellor, Rishi Sunak, has announced measures to support businesses. This include the coronavirus job retention scheme, the self-employment income support scheme, VAT and self-assessment payments deferrals, statutory sick pay help, grants and loans:
Further to the Budget delivered on 11th March, here is a summary of the key announcements: Personal allowance and higher rate limit The personal allowance is frozen at £12,5000 and the higher rate tax threshold is also frozen at £50,000. There are no changes to income tax rates. The corporation tax rate remains at 19%.…
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Tax update for 2019-20 The new thresholds and allowances will apply from 6 April 2019. Personal Allowance The amount you can earn before paying income tax via PAYE will increase to £12,500 (from £11,850). Income tax rates The higher rate tax threshold will increase from £46,350 to £50,000. Class 1 national insurance threshold The primary…
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Dividend allowance and dividend taxation in 2018-19
The tax-free allowance will be reduced to £2,000 from April 2018 (from £5,000 in 2017-18).
The dividend tax bands are:
0% below £2,000 (above the £11,850 personal allowance)
7.5% basic rate
32.5% higher rate
38.1% additional rate
Director salary in 2018-19 The employment allowance is not available to companies where the only person on the payroll is a director. The most tax efficient salary for those companies will be a salary just below the NI threshold. The difference with paying yourself a salary at the personal allowance level (£11,850) is small however,…
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An employer can now provide trivial benefits such as a bunch of flowers, a box of chocolates, without having to put it on the P11D and without any tax or national insurance for either employer or employee. This is valid for the current tax year. There are three key conditions: the trivial benefit must cost…
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In the Autumn Statement, the chancellor announced changes to the VAT Flat Rate scheme. From April 2017, HMRC will introduce a new category of trader, a ‘limited cost trader’, with a Flat Rate Scheme (FRS) percentage of 16.5%. A business within the FRS will have to consider for each VAT accounting period whether it is a…
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The new thresholds and dividend taxation came into place on 6 April 2016. Director salary in 2016-17 The £2,000 employment allowance is no longer be available to companies where the only person on the payroll is a director. The most tax-efficient salary for those companies will be a salary just below the NI threshold,…
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The new dividend taxation announced in the Summer Budget, which will apply from 6 April 2016 will have a significant impact on the tax paid by small companies owners and contractors who pay themselves a small salary designed to preserve entitlement to the State Pension, and a much larger dividend. The proposed changes…
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From April 2015, the personal allowance is increasing to £10,600. The employment allowance (tax break on the first £2k of employer NI) will still apply. For company directors who wish to pay themselves a low salary and the balance they take out of the company as dividends, the two remuneration options are: …
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