Did you know?
23rd June 2014
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David White lists a few tax pointers you should know. 

  • Personal allowances for the 2014/15 tax year are £10,000.

  • The higher rate level of income tax starts with a gross income in excess of £41,865.

  • By drawing a low level salary £660 per month (£7,920 per annum) and supplementing this with dividends £33,945 gross you can draw £3,174 net per month without paying any personal tax or national insurance. (subject to the business being profitable and able to pay a dividend and assuming no other personal income, benefits etc).

Did you know?

  • You can rent a room in your home for up to £4,250 per year with no income tax implications.

Did you know?

  • Business corporation tax is 20% on profits up to £300k for the 2014/15 tax year and a unified rate of 20% across the board from 1 April 2015.

  • In 2014/15 where there are associated companies the limits are reduced by dividing them by one plus the number of associated businesses carrying on a business.

Did you know?

  • The background supporting records of all companies and organisations must be kept for at least six years from the end of the last relevant accounting period.

  • Research and Development tax credits were introduced to encourage innovation and enterprise within the UK economy, SMEs can claim R&D tax credits of 225% for expenditure incurred after 1 April 2012.

     

Did you know?

  • Capital Gains Tax (CGT) is charged at a simple flat rate of 28%, if taxpayers only pay basic rate tax and make a small gain they may only be subject to a CGT rate of 18%, but once the total of taxable income and gains exceeds the higher rate threshold, the excess will be subject to 28% CGT.

  • Entrepreneurs relief applies to the sale of a business, shares in a trading company or an individuals interest in a trading partnership and when given the CGT rate reduces to 10% rather than 28%. There is a lifetime limit for gains up to £10 million.

Did you know?

  • The VAT registration limit is £81,000, but you can voluntarily register below this level.

  • If your turnover is going to reach the turnover registration limit you must register within 30 days.

 

By David White a Partner in Charterhouse, based in Beaconsfield

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About the Author

David W

Member since: 16th May 2013

David White is an equity partner in Charterhouse a practising firm of Chartered Accountants based in Beaconsfield and Harrow. David is Charterhouse through and through having been with them for 30 years...

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