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Archives

Monthly Archive for: "May, 2016"
 Don’t get caught out on payroll errors
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By Michael
In Business
Posted May 25, 2016

Don’t get caught out on payroll errors

According to a new report, HMRC has been cracking down on payroll errors, and SMEs have been particularly targeted. In the 2014 – 2015 tax year, HMRC gathered in £737 million from [...]

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 Do you know what tax relief is available to your business?
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By Michael
In Business
Posted May 18, 2016

Do you know what tax relief is available to your business?

According to a new study, almost half (46%) of SMEs in the UK admit to having a “very poor” understanding of the government tax relief available to them. This means a huge number of small [...]

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 Are you one of the micro-businesses missing millions in tax relief?
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By Michael
In Business
Posted May 11, 2016

Are you one of the micro-businesses missing millions in tax relief?

Almost £250 million of expenses are not being claimed by micro-businesses in the UK each year because business owners don’t think they’re worth claiming. The quarter of a billion pounds equates [...]

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 What will proposed changes in probate fees mean?
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By Michael
In Business
Posted May 4, 2016

What will proposed changes in probate fees mean?

Probate fees could soar to up to £20,000 for the highest-value estates under new proposals announced by the Ministry of Justice. This fee would be almost 130 times the current level. Currently, [...]

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Assumptions

  • Based on a contractor working 37.5 hours per week.
  • Full employee personal tax allowance of £11,000 per year (tax code 1100L).
  • Contractor has no additional income during the tax year.
  • Subsistence based on the HMRC’s benchmark scale rates model.
  • Annual business mileage calculated at 45p/mile for the first 10,000 miles and at 25p/mile thereafter.
  • Expenses calculated between £3.16 and £355 and is restricted by allowable expenses and expenses reasonably incurred by an employee working and staying away from home.
  • Weekly calculation based on 52 weeks per full tax year.
  • Monthly calculation based on 12 months per full tax year.
  • All Tax, NIC’s and employers NIC’s based on 16/17 tax year.

Additional assumptions for Crystal calculation

  • SDC (Supervision, Direction or Control) does not apply during any contract assignment throughout the tax year.
  • All legitimate business expenses incurred during each assignment will be paid as part of your regular Crystal payment package. Any incurred expenses over the pre-agreed amount can be received as a tax refund from HMRC after the tax year-end on 5th April.
  • All Crystal payments include holiday pay.
  • All Crystal payments do not include pension contributions.

Additional assumptions for Pocked Accounts calculation

  • All assignments fall outside the scope of IR35.
  • Director’s wage of £8,060 per year.
  • Pocket Accounts Premium package is used for the purpose of this calculation.
  • Only one owner and director is involved in the company.

Please note, you may be eligible for the HMRC’s flat rate VAT scheme. Our consultants would be happy to discuss this with you.