The tax rules for dividends changed several years now ago.  As the new tax year has started, we thought we’d detail the most effective 2018-19 dividend and salary combination. This article assumes that you are not a Scottish taxpayer. Scotland has different rates of income tax for non savings income (e,g, earnings). However just to confuse matters the same higher […]

Many businesses would like to avoid being VAT registered. Especially as the VAT registration threshold has been frozen for at least two years. This article discusses the circumstances where HMRC might consider business splitting and VAT avoidance has taken place.   When considering business splitting and VAT avoidance it’s important to determine what is taxable turnover for VAT. For example, […]

If you’re VAT registered business and use a vehicle for work, it’s important to understand the different rules for VAT recovery on cars and vans. We covered the direct tax (i.e. non VAT treatment of cars and vans in previous articles so this time we’re going to focus more on the VAT treatment. When considering VAT recovery on cars and vans, whether […]

One of the stand-out announcements from Spring Budget 2017 was a reduction in the ‘dividend allowance’ from April 2018. What does this mean in practice, and how much will it cost you? [Update: The planned cut in the dividend allowance detailed in this article was dropped from the Finance Bill 2017 as a result of the General Election. It may […]

Key Points – Changes to Dividend Tax 2017 The proposed changes to the dividend tax allowance has now been withdrawn due to General Elections. The tax-free dividend allowance would have been decreased from £5000 to £2000 which would have affected small business owners and the self-employed. Rates for Dividend Tax The tax on dividends as it stands now is as […]

Currently only businesses with taxable turnover above £85,000 per annum are required to be VAT registered in the UK. As part of their review into the UK’s VAT system, the findings of which are due to be released this week, the Office for Tax Simplification (‘OTS’) has been reviewing whether this current threshold should be retained. The UK currently has […]