Posts Categorised: Tax

Directors Loans or Dividends?

Could you save tax? The shake-up of dividend taxation announced in the last budget lead us to to say that the key to tax planning now is to look at “total tax liability”. That means it is worth us introducing a new tax saving angle to consider: using your directors loan account.  It doesn’t apply… Read more »

Employment Allowance – Single Director Companies

£3,000 allowance is not for you You may have seen in our budget coverage that the allowance for employers to set against their National Insurance liability has been increase to £3,000 in this tax year. However if you are the director of a limited company where you are the only employee being paid above the secondary… Read more »

Tax Free Savings Income

Grab a Grand Just a reminder that a tax-free allowance of £1,000 is now available for the interest that basic rate taxpayers earn on their savings. Higher rate taxpayer earning between £43,000 and £150,000 are eligible for a £500 tax-free savings allowance. People with income in excess of £150,000 a year will be taxed in full on their… Read more »

Budget 2016

Small Business Highlights The 2016 Budget got underway against a backdrop of economic uncertainty and suggestions from many commentators that Chancellor George Osborne is facing a black hole in the public finances. It isn’t always easy to pull the facts from the rhetoric but here is Lewis Smith & Co’s list of Budget announcements that most… Read more »

Dividend Allowance Advice

There’s No Single Right Answer We provided a reminder recently about the forthcoming change to dividend taxation. The new Dividend Allowance is likely to make a difference to many small business owners.  How big that difference is and whether it is positive or negative is highly dependent on your specific circumstances. It is already clear… Read more »

On or Before Reporting

HMRC tightens up the rules HMRC has confirmed that the temporary relaxation of when PAYE information is reported will end as planned on April 5th 2016. The relaxation allowed businesses with 9 employees or less to report PAYE information ‘on or before’ the last payday in the tax month. This means that PAYE reporting must take… Read more »

Dividend Allowance

A Major Change to Dividend Taxation HMRC has now clarified the structure and tax rates of its new Dividend Allowance. From April 6th 2016 the new tax regime will replace the Dividend Tax Credit and many limited company owners will see a significant tax increase. The changes are designed to reduce “tax motivated incorporation” where… Read more »

Record Returns Returned

Everybody crossed the line on time In another record-breaking year Lewis Smith & Co. succeeded in getting all of its clients self assessment returns filed ahead of the January 31st deadline. In fact this year there was  noticeable increase in people providing their paperwork well ahead of time.  That has its benefits for both parties… Read more »