We’ve covered what Making Tax Digital means at the moment in our previous posts, in this one we are looking towards the future and what MTD will become.
In our last post we provided an introduction to Making Tax Digital (MTD) and to help you understand it all further we've covering our frequently asked questions to help clear a few things up!
The UK government is introducing big changes to how tax is filed to make it easier for individuals and businesses to get their tax right and stay on top of their tax bill.
For small business owners dividends have traditionally been seen as the preferable way to take money out of a business. This was because the tax rates on dividends were lower than if the money had been taken as salary. From April 2018 the rules have changed making this method less attractive as the government aimed to reduce the tax difference between the self-employed and those working through a company, although with careful planning it can still be the more tax effective option.
Since the government implemented the National Living Wage (NLW) in April 2016 we now get the increases to National Minimum Wage (NMW) and NLW in April each year.
National Living Wage (NLW) applies to everyone aged 25 and over, while National Minimum Wage (NMW) applies to people under 25.
As the end of the tax year approaches on 5th April 2018 its time to start thinking of the most tax efficient way to draw money from your limited company for the new financial year.
Currently the rules around Payments In Lieu of Notice are quite complicated. Payments In Lieu of Notice also known as PILONs are the biggest area of confusion.
Automatic enrolment was first launched back in 2012 and since October 2017 its the law for every UK business with employees.
Now contribution rates are increasing, click here to find out more.