TIP 1
Understand Your Tax Obligations!!
> Sole Traders need to register with HMRC within 3 months of start up!
> Limited Companys need to make sure they register for PAYE
> Learn the basics about your tax obligations. There is PAYE, VAT, Corporation Tax, Personal Tax and CIS to consider! The HMRC website will provide information on many of these topics, if not ask your accountant!
Thursday, 8 April 2010
Monday, 15 March 2010
PAYE Coding Notice- What does my code mean?
Your employee tax code is used by your employer to calculate the amount of income tax that must be withheld or deducted from your salary.
The significant part of your code is the number
The number indicates to the employer how much of your earnings are "tax free". For example if your code is 647 this shows what your tax free allowance for the given year is £6475, if your code was 728 you fax free allowance would be £7285.
The standard personal tax allowance for a year is £6475. If your allowance is over this amount it is likely to be because you are entitled to another tax allowance, or you have simply over paid tax in an earlier year.
If you allowance is less than £6475 then it may be that you owe tax from a previous year.
If your tax code starts with a letter then the letter is important.
BR codes indicates that you must pay basic rate (20%) on all your earnings. This code is often used when you have two jobs, you are likely to take your whole tax free allowance on one of the jobs and pay basic rate on all of your earnings from your second job.
NT codes mean you pay No Tax, this is only used in exceptional circumstances. Students at university will have a NT code when they work during their summer holidays.
K codes are a little more complex....
A negative PAYE code, or "K" code, means your personal allowances for the tax year are less than untaxed income and benefits which have been included in the code. Your employer or pension provider will add the negative figure from this code to your annual income rather than deducting it, as they would with a normal PAYE code. However, please check that all your allowances are included in the code. If you are married and were born before 6 April 1935 you may be due a married couple’s allowance. In some cases the married couples" allowance has been missed from PAYE codes issued since 1 July 2009. If this applies to you, ring the Tax Office number shown on your code notice, or ask us to check your code for you.
If you have any queries regarding your tax code you can find more information on the HMRC wesbite
Also dont forget to double check your tax codes as HMRC had problems when issuing codes this year and people have recieved two coding notices, check out their website for more information!
The significant part of your code is the number
The number indicates to the employer how much of your earnings are "tax free". For example if your code is 647 this shows what your tax free allowance for the given year is £6475, if your code was 728 you fax free allowance would be £7285.
The standard personal tax allowance for a year is £6475. If your allowance is over this amount it is likely to be because you are entitled to another tax allowance, or you have simply over paid tax in an earlier year.
If you allowance is less than £6475 then it may be that you owe tax from a previous year.
If your tax code starts with a letter then the letter is important.
BR codes indicates that you must pay basic rate (20%) on all your earnings. This code is often used when you have two jobs, you are likely to take your whole tax free allowance on one of the jobs and pay basic rate on all of your earnings from your second job.
NT codes mean you pay No Tax, this is only used in exceptional circumstances. Students at university will have a NT code when they work during their summer holidays.
K codes are a little more complex....
A negative PAYE code, or "K" code, means your personal allowances for the tax year are less than untaxed income and benefits which have been included in the code. Your employer or pension provider will add the negative figure from this code to your annual income rather than deducting it, as they would with a normal PAYE code. However, please check that all your allowances are included in the code. If you are married and were born before 6 April 1935 you may be due a married couple’s allowance. In some cases the married couples" allowance has been missed from PAYE codes issued since 1 July 2009. If this applies to you, ring the Tax Office number shown on your code notice, or ask us to check your code for you.
If you have any queries regarding your tax code you can find more information on the HMRC wesbite
Also dont forget to double check your tax codes as HMRC had problems when issuing codes this year and people have recieved two coding notices, check out their website for more information!
Friday, 19 February 2010
Tax predictions for 2010
Do you get the feeling that we haven't had the worst of the current financial crisis?
Two certainties for this year are (1) there will be a general election and (b) the winners will introduce some heavyweight tax policies to try and reduce the eyewatering £800 billion national debt.
Here are One Accounting's predictions for the first post election budget.
(1) VAT to increase to 20%
At 17.5%, our VAT rate is one of the lowest in Europe. As VAT is paid over quarterly, a swift increase to 20% by Mr Osbourne or Mr Darling will give a quick injection of cash into HMRC's reserves.
(2) Capital Gains Tax to increase to 30%
At a current rate of 18% (or 10% for entrepreneurs), the CGT rate is out of touch with the soon to be top rate of income tax of 50%. Expect a jump to 30%, midway between the 20% or 40% income tax that most UK taxpayers currently pay.
(3) Taxing the Skies
Our appetite for foreign travel shows no signs of reducing. Air travel is currently VAT free and is certain to rise. Don't bet against VAT being added to air travel or a hike in fuel surcharges.
(4) Interest on late payments to rise
HMRC will be charging interest on late PAYE payments from 6th April 2010. With tax revenues falling, the taxman will be keener than ever to get the payments in on time. Expect increased penalties, interest and general HMRC interference for anyone who pays their VAT, Income & Corporation Tax and PAYE late.
(5) Tax benefits for green technology
As Oil prices continue to rise, the government will offer greater tax incentives for businesses and private individuals to invest in green technologies.
Two certainties for this year are (1) there will be a general election and (b) the winners will introduce some heavyweight tax policies to try and reduce the eyewatering £800 billion national debt.
Here are One Accounting's predictions for the first post election budget.
(1) VAT to increase to 20%
At 17.5%, our VAT rate is one of the lowest in Europe. As VAT is paid over quarterly, a swift increase to 20% by Mr Osbourne or Mr Darling will give a quick injection of cash into HMRC's reserves.
(2) Capital Gains Tax to increase to 30%
At a current rate of 18% (or 10% for entrepreneurs), the CGT rate is out of touch with the soon to be top rate of income tax of 50%. Expect a jump to 30%, midway between the 20% or 40% income tax that most UK taxpayers currently pay.
(3) Taxing the Skies
Our appetite for foreign travel shows no signs of reducing. Air travel is currently VAT free and is certain to rise. Don't bet against VAT being added to air travel or a hike in fuel surcharges.
(4) Interest on late payments to rise
HMRC will be charging interest on late PAYE payments from 6th April 2010. With tax revenues falling, the taxman will be keener than ever to get the payments in on time. Expect increased penalties, interest and general HMRC interference for anyone who pays their VAT, Income & Corporation Tax and PAYE late.
(5) Tax benefits for green technology
As Oil prices continue to rise, the government will offer greater tax incentives for businesses and private individuals to invest in green technologies.
Saturday, 13 February 2010
Santander - Free Business Banking
Whilst paying in junior's hard earned penny jar contents into his savings account at the Abbey (now Santander) branch on Shandwick Place, my eye was caught by their free business banking for life offer.
I'm not sure what happens if you actually want to pick the brains of a bank manager, but it sounds like a decent offer.
I'm not sure what happens if you actually want to pick the brains of a bank manager, but it sounds like a decent offer.
Saturday, 6 February 2010
One Accounting - Live at Centotre
Here's a three minute presentation by Chris on what we do at One Accounting.
This was filmed at the 6 degrees networking breakfast event at Centotre in Edinburgh in February 2010.
This was filmed at the 6 degrees networking breakfast event at Centotre in Edinburgh in February 2010.
Tuesday, 27 October 2009
Beer 3-30
We're having a "Beer 3-30" gathering on Friday 6th November 2009 at All Bar One, George Street, Edinburgh.
What is Beer 3-30? It's a very informal gathering of our clients, associates and other like minded folk. We talk about everything but business (that's what Monday 9.00 am to Friday 3.29 pm is for)
The Beer (or wine, soft drink if you prefer) is on One Accounting until the kitty runs out.
Oh, we start at 3.30 and finish at 6.00 (or later if the mood takes us)
Contact Chris or Neil at info@oneaccounting.co.uk if you want to join us.
What is Beer 3-30? It's a very informal gathering of our clients, associates and other like minded folk. We talk about everything but business (that's what Monday 9.00 am to Friday 3.29 pm is for)
The Beer (or wine, soft drink if you prefer) is on One Accounting until the kitty runs out.
Oh, we start at 3.30 and finish at 6.00 (or later if the mood takes us)
Contact Chris or Neil at info@oneaccounting.co.uk if you want to join us.
Wednesday, 7 October 2009
Brad Sugars
We went to see a great presentation by Action Coach founder Brad Sugars in Glasgow the other night. My favourite quote of the evening for all you procrastinators out there
"When is now the best time to do this?"
He also gives a lot of stuff away for free at http://www.bradsfreeebooks.com
"When is now the best time to do this?"
He also gives a lot of stuff away for free at http://www.bradsfreeebooks.com
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