Cap on Income Tax Reliefs

One of the surprises of the Budget announcements made 21 March was the capping of certain reliefs, particularly the reliefs for charitable giving and business losses.

The aim of the cap is to restrict the amount of tax relief claimed by high income earners. The Chancellor was apparently shocked to discover that some of the country's wealthiest individuals pay hardly any income tax.

What is the cap?
The Budget itself contained very few details about the proposed cap other than:

Special VAT Schemes for Smaller Businesses

There are three main VAT schemes available to small businesses:
• The Flat Rate Scheme
• The Annual Accounting Scheme
• The Cash Accounting Scheme
 
The Flat Rate Scheme
This scheme is especially useful for businesses with minimal VAT on business expenses (input tax) to reclaim. For qualifying traders real cash savings can be made. Businesses can only apply to use the Flat Rate Scheme if they expect their annual taxable turnover in the next 12 months to be no more than £150,000, excluding VAT.

Have you considered investment risk?

Over recent years investment markets have become more volatile and less predictable, a good example being the FTSE 100, a measure of the one hundred largest companies based in the United Kingdom, which currently stands over 20% lower than in 1999.

Charity Taxes

The Budget has generated some interesting headlines with the whole issue of charitable donations being thrust into the public eye. However, for those working in the charity sector and those individuals who wish to make generous gifts the important factors are simply what has changed and what remains the same.

Property Market Developments

The Stamp Duty holiday for first time buyers came to an end on 25 March 2012 and thresholds returned to a 1% levy on purchases over £125,001 to £250,000, 3% on purchases between £250,001 and £500,000 and 4% on purchases between £500,001 and £1,000,000, for all buyer types.

Property Market Developments

The Stamp Duty holiday for first time buyers came to an end on 25 March 2012 and thresholds returned to a 1% levy on purchases over £125,001 to £250,000, 3% on purchases between £250,001 and £500,000 and 4% on purchases between £500,001 and £1,000,000, for all buyer types.

Alphabet Shares

The use of alphabet shares can be an excellent way of paying dividends to key employees or family members which are not in proportion to their actual ownership of the company.  As dividends are usually more tax efficient than salary, significant tax savings can be made as a result of an appropriately structured company.

Whilst it is possible to achieve a similar result using dividend waivers, these can be rather messy and can create legal and accounting problems if great care is not taken.

Farm Business Health Check – Is your business ready for 2012 and beyond?

This was the question asked to those attending a series of seminars organized recently by Armstrong Watson, Strutt & Parker and Frontier held at Romanby Golf Course, Northallerton on 25 April and Tickton Grange, Beverley on 26 April.

The well attended breakfast seminars chaired by Peter Molyneux, Partner, Armstrong Watson, saw three industry experts talk fluently on their chosen subject:

Should you make a Tax Return?

Well that sounds like a fairly simple question but, during the year ahead many people will be finding out the hard way that they should have completed a tax return and are now about to be penalised for not doing so.

New MD appointment at Armstrong Watson's Financial Planning arm

Armstrong Watson has appointed Andrew Kilby as Managing Director of its Financial Planning and Wealth Management arm.

Andrew will be responsible for the day to day strategic direction and management of the financial services business having taken over the responsibility from Paul Dickson, enabling Paul as Managing Partner to focus on the business objectives of the whole Armstrong Watson group.