Bells Accountants

Bells Accountants, Chislehurst

Tax Tips For Selling Assets Including Investment Properties

Your home – when you sell your main residence this is usually exempt from any capital gains tax. If you have two homes you have two years from the date you buy it to make an election that states it should be regarded as your main residence for capital gains tax exemption. Once you make an election it can be changed at any time. Annual exemptions – Husbands and wives are both entitled to an annual exemption allowance. Exactly how much this allowance is, depends on the tax year in which the asset is sold. It may well be worth distributing your shares and assets between you and your spouse in order to make the most of these allowances. Timing – The annual allowance above is available for each and every tax...

Accounting Calculations

Scam Tax Rebate Emails

Here at Bells we have had a number of clients contact us to ask if an email they have received, seemingly from HMRC, is genuine. The email often has HMRC’s logo on it and appears quite official, usually stating that the taxpayer is due a refund and asking them to follow a link to claim the money. Those clients who contacted us did the right thing to query the email as our answer was no it is definitely not genuine! Gareth Lloyd, head of digital security at HMRC, said: "HMRC never contacts customers who are due a tax refund via email - we always send a letter through the post. "If you receive an email claiming to be from HMRC which offers a tax rebate, please send it to phishing@hmrc.gsi.gov.uk and...

Bells Accountants, Chislehurst

Tax on Dividend

If you own shares in a company you may well pay yourself via a dividend. Previously, if you were a basic rate tax payer you were not required to pay any additional tax on dividends. As of 6 April 2016, you won’t pay tax on the first £5,000 of dividends that you get in the tax year. However, above this allowance the tax you pay depends on which income tax band you are in. Add your income from dividends to your other taxable income when working this out. You may pay tax at more than one rate. Basic rate 7.5% Higher rate 32.5% Additional rate 38.1% At Bells we will be carefully planning when and how much dividends our clients should be taking in the current tax year. Please do get in touch if you are worried about...

Bells Accountants, Chislehurst

Changes to the VAT flat rate scheme from April 2017

HMRC are proposing to introduce a new category of trade to the flat rate scheme called a ‘limited cost trader’, this new category will use a flat rate percentage of 16.5%. The flat rate scheme was initially introduced as a simplified way of dealing with VAT, however many businesses make extra profit by being on the flat rate scheme which HMRC are now looking to clamp down on. Currently, under the flat rate scheme, a business chooses the most appropriate percentage for them according to what industry it is in. Under the new proposals the business owner or their accountant will have to consider whether they meet the conditions for a ‘limited cost trader’ and if they do they will have to use the 16.5% percentage going forward. This may well be considerably higher...

Accounting Documents and Calculator

Six Things to Consider When Buying a Business

There can be many positives to buying a business, rather than building one from scratch. It can save a lot of time and effort on your part if you are taking over systems, processes and even a customer base that is already established and working. Buying a business can be very risky though, and here are some things to consider: The business valuation – is this fair and reasonable? Your accountant will be able to help you determine whether the price you have been offered is a true reflection of the business’s worth. Return on Investment – based on the price you will be paying, the profits the business is making and the potential added value you can bring – how long will it take to get back your original...

Start up accountants Kent

Do I need an accountant?

Ultimately the answer to this question is that it is up to you. Legally you are not required to have an accountant you can submit your own accounts or tax return but we would encourage you to consider all of the following points before you make that decision: 1. Recognise your strengths and focus on what makes you money. 2. Understand that the limitations to your knowledge will cost you money in the lost value of your time and in actual tax paid. 3. Remember that accountancy fees are tax deductible. ...

Pensions Bells

Employers Guide To Auto Enrolment (or work place pensions!)

Under the Pensions Act 2008, every employer in the UK must put their staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. Auto-enrolment of workplace pensions has actually been in existence in the UK since 2012, initially targeting the big employers. Now it is the turn of small and micro employers to ensure they also set up a pension scheme. If you have a payroll and you ignore auto - enrolment you will face financial penalties. The Pensions Regulator has already issued hundreds of penalty notices to employers who have not set up a workplace pension by the time they were supposed to. Bells Payroll Services will take care of all this for you! Bells current clients will already be aware of the date they are required to commence...

Accountant in Kent

Setting Up A Limited Company – Things to Consider!

Your business name – When registering a limited company you are not allowed to use a name that is in use by someone else. You can check if the name you are considering is available by using this online tool http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo Your registered office – This is the address that your company is registered at with Companies House. This means the address will be available on public record. If you currently work from home you may wish to consider using a “virtual office” service. Bells can provide this as a service. Getting a business bank account – Limited companies must have their own bank account. Many people approach the bank that they bank with personally with a view to setting up a business account. This can save time in some instances but...

Tax Dividends Changing Bells Accountants

Tax on Dividends Is Changing!

How do things work now? You can pay yourself from your limited company in two ways, via salary or dividends. Most directors pay themselves a small salary topped up with dividends. Dividends are paid after Corporation tax has been charged, they are paid out of money that has already been taxed once. Currently there is no personal tax to pay on dividends if you are a basic rate taxpayer   How will things work from April 2016? When the new legislation comes in the tax situation will change. Directors will get a £5,000 dividend allowance with a tax rate of 0%. Any dividends taken above £5,000 will be taxed at 7.5% for a basic rate taxpayer, 32.5% for a higher rate taxpayer and 38.1% in the additional rate band. This does not apply to dividends held within an ISA...