Author Archives: Yusuf Patas

Tax Efficient Salary And Dividend – Tax Year 17/18

For the 2017/18 Tax Year (6th April 2017 to 5th April 2018), you have 2 options as follows: Option 1 is for Companies with just the Director as an Employee Option 2 is for Companies with an Additional Employee Option One – Annual salary to NI threshold Gross salary £8,164 equal to £680.33 per monthContinue Reading

Setting your Tax Free Salary and Dividends from April 2015 Up to March 2016

Taking into account the recent budget changes and the new Pension Auto Enrolment Rules, I recommend taking the following Salary and Dividends from April 2015 to March 2016 from your Limited Company, assuming you have no other income and the limited company has profits available to distribute: – An Annual salary of £8,060 (equivalent toContinue Reading

A to Z of flat rate percentages by Trade Sectors (2016)

A Sector Trades % Accountancy or bookkeeping Accountants 14.5 Bookkeepers Income tax preparation services Advertising Advertising consultants 11 Advertising space providers Advertising services such as billposting Agricultural services Services to agriculture such as equipment hire with operator or animal transport or breeding services 11 Any other activity that is not listed elsewhere Coin operated photographicContinue Reading

Tax Free Salary and Dividends 14/15

Taking into account the recent budget changes, the most tax efficient mix Salary and Dividends from April 2014 to March 2015 from your Limited Company, assuming you have no other income is as follows: – An annual salary of £7,956 (equivalent to £663 per month), plus – Net dividends of £30,518 This will give you an AnnualContinue Reading

High income child benefit charge

The High Income Child Benefit charge will be introduced from 7 January 2013. You may be liable to this new tax charge if you, or your partner, have an individual income of more than £50,000 and one of you gets Child Benefit or contributions towards the upkeep of a child. HMRC at present are writingContinue Reading

Minimum Wage Increase from 1 Oct 2012

The national minimum wage (NMW) hourly rates which will apply from 1 October 2012 are: – adult rate £6.19 (9p increase) – 18–20 year olds £4.98 (no change) – 16–17 year olds £3.68 (no change) – apprentices £2.65 (5p increase)Continue Reading

Tax credits: changes from 6 April 2012

From 6 April 2012 there will be a number of changes to tax credits (working tax credit (WTC) and child tax credit (CTC)). Working hours requirement – From 6 April 2012, couples with children must work at least 24 hours a week between them, with at least one of them working 16 or more hours.Continue Reading

VAT rate changes to 20% from 4 January 2011

From January 4 2011 the standard rate of VAT increases to 20%. If you are VAT registered then you must start charging VAT at 20% from 4 January 2011 for Supplies of standard rated goods and services made on or after 4 January 2011. S There are no changes to sales which are zero rated, orContinue Reading

Tax free expenses

What expenses are tax free Whether you’re a company director planning your own salary package, or looking for ways to cut the cost of your staff payroll, you can consider the following tax-free* expenses: Accommodation, supplies and services used in employment Annual parties and functions Bus services subsidised by the employer Cars for disabled employeesContinue Reading

PAYE Tax Payers

PAYE Tax Errors You may have seen the media coverage over the past few days about over and underpayments of tax. It has been widely reported that HMRC’s new PAYE computer has calculated that some six million people have underpaid £3 billion in PAYE. HMRC are currently sending out letters to people if they believeContinue Reading