NEWSLETTER FOR WINTER 2013

Autumn Statement (05.12.13) – It is intended to introduce:

*a transferable tax allowance between some married couples, and civil partners.  The figure of this is likely to amount to around £200 extra cash in your pocket. 

*exemption from National Insurance for employers paying persons under 21 years old

*an attempt to relax rules for Gift Aid to Community Amateur Sports Clubs, but thus seems restricted to Companies, not Individuals.  Setting up a separate trading subsidiary, and Gift Aiding its profits to the Club, can virtually eliminate its Corporation Tax profits.

* Capital Gains Tax to be imposed on Non Residents and UK Residential properties.

*Capital Gains Tax on those selling their former Main Residences will have the three year period of grace to sell, reduced to 18 months.

Tax-Planning for income in excess of £100,000pa remains open to those who wish to reduce their statutory income to below this figure, by paying amounts by Gift Aid, and Personal Pensions.  However, where income is very high, then there are restrictions on the amount that can be deducted

Changes in the Tax Band where people are brought into the 40% rate, continues to bring further people in.  From 06.04.14 the 40% rate will be reached when income reaches £41,865 from £41,450.

Paying funds into Individual Savings Accounts (ISAs) remains one of the better methods of legitimately sheltering funds from tax, although the rate is less than inflation.  This is one severe worry where “Quantitative Easing” has affected us.  Shares held in an Isa are exempt from Capital Gains Tax, and if held long enough: income tax.  Other tax-saving methods to consider are to hold shares for at least two years in the Alternative Investment Market (AIM), as these are exempt from Inheritance Tax and sometimes, Business Property Relief.

Car & Fuel Benefit for those who work through a limited liability company continues to be hammered.  It is never a good idea to have a company car.  Thankfully, this is not applicable to sole-traders who are truly self-employed.

Real Time Information on payroll nears the end of its “we’ll let you off the mistake without fining you, but only for THIS year”.  That moratorium comes to an end after 06.04.14.

Radio Work

Fighting for the “small man” has always been our strengths.  Some of you might have heard me on London Broadcasting Corp (LBC), where I am often asked to comment on tax of the day stories, as well as guessing for hour-long questions raised by listeners up and down the country.  All of these are dealt with under the “High street Accountant” description.  You, as clients, are not treated fairly by the tax system, and so it is you that we seek to protect.