Originally written by David Redfern on Small Business
When setting up and running a small business, it’s very often “all hands-on deck”, with all efforts focused on the day-to-day running of the business. It is easy, therefore, to forget about areas such as tax relief which don’t come under the daily management of your business. However, forego these tax breaks and you could miss out on ways in which you can make your business more efficient and competitive.
A number of tax breaks are applicable to small businesses, some which are industry specific and some which are generally applicable to all SMEs.
If your business meets the HMRC-qualifying criteria, these tax breaks could significantly lower your tax bill, making your business more profitable and efficient with little extra effort on your part.
The following tax breaks are available to SMEs so let’s take a look and see if your business could be eligible:
Employment Allowance
If your business has employees which you pay through PAYE, Employment Allowance is worth up to £3,000 off your employer’s Class 1 National Insurance bill per tax year. It reduces your employer’s National Insurance bill each time you run your payroll until the £3,000 is used up or you reach the
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Call for Treasury to simplify small business tax regime
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Government has been urged to simplify the current small business tax regime, replacing myriad taxes with a levy on turnover.
Free-market think tank the Centre for Policy Studies argues that small and family businesses with revenue of under £1m should be given the option to replace corporation tax, business rates, VAT and employer’s National Insurance with a “simple consolidated tax”.
Home Secretary Sajid Javid was due to launch the Think Small report in London today. The report is written by Nick King, former special adviser to Javid when he was business secretary.
According to a YouGov poll commissioned for the report, 75pc of small business owners believe the current tax regime is too complicated.
Entrepreneur enthusiasm
Seventy-two per cent out of more than 2,000 SME owners and managers said they would move to a simple turnover tax if the amount of tax they had to pay remained the same, because of its simplicity. More than a quarter of respondents said they’d move to the new system even if it meant paying more tax.
From the Treasury’s viewpoint, a SCT would raise the same amount of money as current arrangements, while SME owners who found themselves paying more under the
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HMRC under fire over IR35 off payroll consultation
by Stephanie Spicer • • 0 Comments
HMRC’s consultation on IR35 is already under fire as critics accuse the government of underestimating the complexity of the task ahead and risking missing the opportunity to make the whole process more user friendly for a key sector of the UK workforce. The HMRC invite for input to a consultation on IR35 – the off
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Making Tax Digital exemptions deadlines are unrealistic
by Stephanie Spicer • • 0 Comments
VAT registered individuals and businesses needing to apply for an exemption from the new digital VAT requirements- Making Tax Digital (MTD) – have little time to do so, according to the Low Incomes Tax Reform Group (LITRG) MTD for VAT applies to businesses with taxable turnover exceeding £85,000 but as the threshold is based on
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Making a tax return ahead of the end January deadline
by Stephanie Spicer • • 0 Comments
If you are self-employed or in a business partnership and haven’t done a tax return yet, it is best not to dwell on why at this point. But it will mean you don’t know what tax you owe for the year 2017/18 -which you have to pay by 31 January, ie by the end of
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How can I set up payroll without an accountant?
by Michael Somerville • • 0 Comments
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‘Be concerned’, SMEs told, as HMRC targets SMEs over tax avoidance
by Owen Gough • • 0 Comments
Small business owners should be taking steps to improve their record keeping and seeking specialist advice following new research that has suggested HMRC is targeting SMEs rather than larger businesses over potential tax avoidance because it perceives them to be an easier target. That’s the message from online accounting software provider Clear Books, commenting on
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HMRC tax investigations: Eight reasons HMRC might audit your business
by Ben Lobel • • 0 Comments
HMRC tax investigations are not an experience the average business owner wants to endure. HMRC tax investigations are expensive, time-consuming and stressful, lasting 16 months on average and costing roughly £5,000 in accountancy fees. They are almost a nightmare scenario; often not because you’ve actually done something wrong, but simply because you’ll be forced to
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Is HMRC promoting tax avoidance for contractors who use its IR35 status tool?
by Owen Gough • • 0 Comments
In the week that new IR35 legislation comes into effect in the public sector, contracting expert Dave Chaplin, CEO and founder of ContractorCalculator suggests that HMRC’s IR35 status tool could be facilitating tax avoidance. This is based on the analysis of over 558 results that contractors have obtained from HMRC’s Employment Status Service tool compared with
The post Is HMRC promoting tax avoidance for contractors who use its IR35 status tool? appeared first on Small Business.
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Ten threatening letters you do not want to receive from HMRC
by Ben Lobel • • 0 Comments
HMRC take a tough approach to companies that owe them taxes and will enforce against companies that don’t pay up. We’ve selected the top ten letters that you don’t want to receive and what they mean if you do. Overdue corporation tax letter All limited companies must pay corporation tax. If you’ve filed the company’s
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