Apr 13, 2017 0 Posted in Budget, Accounting

Budget 2017: How it affects you

The Chancellor of the Exchequer, Phillip Hammond, has announced his first budget, saying he is "building the foundations of a stronger, fairer, more global Britain". This is how your life will be affected.
Personal taxation

  • Currently, the self-employed may have to pay both Class 4 and Class 2 NICs:

Class 4 NICs at 9% are paid on profits between £8,060 and £43,000
Class 2 NICs are paid on profits of £5,965 or more
From 2018, Class 2 NICs will be abolished. In the spring budget, Philip Hammond  initially announced that Class 4 NICs would rise to 10% in April 2018 and to 11% in April 2019. However, on March 15, the chancellor abandoned plans to raise national insurance for the self-employed by 2 percent.

  • Personal tax-free allowance to rise as planned to £11,500 this year and to £12,500 by 2020
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Apr 01, 2017 0 Posted in Budget, Accounting

IR35 Tax Legislation

The IR35 provisions prevent avoidance of tax by providing services through a company. In essence, IR35 affects all contractors who do not meet HMRC's definition of 'self employment'. This article aims to clarify some of the complications and problems associated with IR35; and guidance on calculating deems salary payment will also be outlined with an example if IR 35 applies to you.

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Nov 30, 2016 0 Posted in Budget, Accounting

Tax Advice for Subcontractors

Which is the best way to set up my business?  I am a Sub Contractor.
Written By Salford Chartered Accountants.

First of all we would say contact us and we will work the tax out based on your personal circumstances. All subbies earn different amounts of income and have varying amounts of expenditure. If you simply want to leave your details with us and we will email you back the best solution to suit your individual needs.

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Nov 30, 2016 0 Posted in Budget, Accounting

14 Tax saving tips: Self Employment

  1. Ensure the personal circumstances and present situation of your subcontractors actually qualify as self employed and not employed. It may well do in your eyes but would it do so in the eyes of the HMRC tax inspector. Does your self employed workers qualify within the “six badges of trade”. Likewise, if you have any “subcontractors” working for you can it be shown that a contract for services exists. 

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Nov 30, 2016 0 Posted in Budget, Accounting

IR35 Legislation - Where a worker provides services to a client through an intermediary

One way in which an individual might seek to avoid being classed as an employee is to form a limited company (A personal service company) and then to hire out his or her services in the name of that company. A personal service company applies to consultants, chefs or individuals supplying a trade or a profession. This would enable the individual to exploit the tax and National insurance advantages offered by corporate status and trading as a limited company. However, anti-avoidance legislation (the “IR35” legislation) exists to thwart this kind of disguised employment. The main features of this legislation are as follow:contact_salford_chartered_accountants.html

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