Massey Accounting Company

making your business less taxing


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Check out our new whiteboard animation

Please check out our newly created 2 min. whiteboard animation. Comments and feed-back are welcome! Please feel free to share.

 

Enjoy saving tax?

We have two videos to help on ourYouTube-logo-full_colorchannel; and for regular tax-tips follow our blog on Google+ or click +Follow at the bottom of this page.


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Thank you John Oldham Plastering

Thank you John Oldham Plastering for your testimonial. We’re proud to be working with local businesses like yours.

Read John Oldham’s testimonial. Visit John’s website: www.plastererhighpeak.co.uk

Enjoy saving tax?

View our video: How to Save Tax YouTube-logo-full_color; and follow our blog on Google+ or click +Follow at the bottom of this page.


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Travel – no longer a tax deductible expense for contractors

Are you a contractor working through your own limited company? Then the government are about to drastically reduce your tax deductible expenses!

Essentially, contractors will no longer be able to claim for their cost of home-to-work travel and subsistence.

The detail
At Budget 2015 the government announced its intention to consult on proposals that will restrict tax relief for the cost of home-to-work commuting for those employed through an employment intermediary and working under the supervision, direction or control of any person.

The widely criticised consultation has now closed and it is expected that from 6 April 2016 the government will remove the ability of contractors to claim tax free travel and subsistence costs when all of the following apply:
A. The contractor works through an employment intermediary whose business is substantially the supply of labour;
B. The contractor can be subject to (or the right to) supervision, direction or control in their work by any person;
C. The contract is performed within the UK – tax relief for the costs of travelling to workplaces situated overseas is not affected.

It is now highly likely that these proposals will be included in the Finance Bill 2016.

There is no getting around the fact that this is very bad news for limited company contractors that can now expect significantly higher corporation tax bills. Some contractor may be able to re-arrange their affairs to reduce their exposure to the new rules. All of our contractor clients will shortly receive personalised guidance.

Enjoy saving tax?

View our video: How to Save Tax YouTube-logo-full_color; and follow our blog on Google+ or click +Follow at the bottom of this page.


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Optimal Director’s Salary for 2015-16

Probably the most important post of the year for company directors!

Wage riseThe small owner managed limited company will usually pay their directors / shareholders with a small salary + dividends.

The level of the director’s salary is usually set in order to avoid any income tax and national insurance. On this basis the recommended remuneration package would be:

Upper limits for 2015-16

Salary – per annum: £8,060 (last year £7,956)
Salary – per month: £671 (last year £663)

Dividend – per annum: £30,891 (last year £30,518)
Dividend – per month: £2,574 (last year £2,543)

However, since the introduction of Employment Allowance some company directors will be better off paying themselves a £10,600 salary and slightly lower dividends (up to £28,606).

Employment Allowance means that most employers will be able to reduce their Class 1 National Insurance contributions (Employers NI) by up to £2,000.

So, increasing your salary and yet not having to pay the Employers NI will save the company £203 per director / shareholder.

Not everyone will benefit. Generally if you have other income you’d be better sticking with the above “usual” remuneration package.

Each client of Massey Accounting Company will be receiving a personalised recommendation shortly.

Enjoy saving tax?

View our video: How to Save Tax YouTube-logo-full_color; and follow our blog on Google+ or click +Follow at the bottom of this page.