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Businesses could be missing out on unclaimed tax reliefs

Accountants and business advisers Armstrong Watson has reason to believe many local businesses are missing out on unclaimed tax reliefs. As owner-managers focus on strengthening their businesses for the future, tax is becoming an increasingly central activity, and can seriously improve the financial health of a business if carried out effectively.

Due to the complex nature of corporation tax, recent feedback suggests that many business owners are unaware of the range of reliefs available, or are unsure if the work they carry out could be eligible for tax relief.

Would you prefer an income or a cash lump sum in retirement?

Regular readers of our articles will be aware of the increased flexibility being introduced to those planning to take retirement benefits from April 2015 onwards.

The new rules offering freedom and choice in pensions for those aged 55 and over come into effect from April 2015 (with some interim arrangements for some more specialist pension contracts, such as executive pension plans), but over recent weeks the Pensions Minister, Steve Webb, has suggested expanding the rules even further, to include those who have already purchased an annuity.

What are your financial resolutions?

Each year most of us start the New Year with good intentions. To keep you on track financially, here are some tips for 2015 that should last beyond the end of January!

Review your expenditure: Find out where your money goes and if savings can be made. This helps you to budget, make plans and keeps you on track.

Tax coding: Are you paying too much tax? Check that your tax code is correct.

Has Santa arrived early for annuity holders?

With Christmas just around the corner and people rushing around to ensure they get their shopping done in time, could there be an early sign of Santa delivering some good news following a review of annuity sales?

Given the considerable changes taking place within the pension landscape, the Financial Conduct Authority (FCA) has been investigating the sale of annuities. In the FCA’s view, many consumers were missing out on a potentially higher income in retirement as they were purchasing their annuity from their existing Pension Provider and not shopping around.

What is a repair?

I'm looking here at the differences in tax treatment of money spent on repairs and a new building or improvement to an existing building.

The cost of repairing an existing asset can be offset in full against profits in the year that it is incurred. The cost of a new building or an improvement to an existing building is treated as capital expenditure and while capital allowances may be due on some of the cost, it is likely that part of the expenditure will receive no tax relief at all.

How business owners can help provide for their employees

It’s rare we talk specifically about products, but this is an occasion that could be of interest to many smaller companies.

Many employers establish schemes that encourage employee loyalty and one of the most popular of these is Death in Service cover. Unfortunately, due to this type of arrangement being targeted at employers with high employee numbers, companies with fewer employees have frequently not considered establishing cover; but things have changed.

Freedom and choice in pensions – Time to review your pension?

With so much change occurring, you may be confused as to what the best course of action is or what your next step should be. Generally speaking, we only retire once in our lives and so a well thought out plan is crucial.

Understanding you, your financial position, your goals and priorities is the first step to knowing where you want to be.

It is worth looking at what you currently have in place to identify if it still meets with your needs and address any gaps.

Restricting tax reliefs on incorporation of law firms

Yesterday, the Chancellor surprised many by announcing changes to the tax treatment of incorporations with immediate effect.

Law firms are currently incorporating in large numbers, and there are now more law firms practising as limited companies than either partnerships or LLPs.  There are many strategic reasons behind that trend, one of which is the tax advantages of both the initial transition and the ongoing practice.

Support Small Business Saturday – Saturday 6 December

This Saturday (6 December) is Small Business Saturday; a specific day to celebrate our local independent retailers. One criticism of city shopping centres is that they all look the same, with the major brands all represented in each and every city and major town. It is the independent retailers that give variety to each town centre, and Carlisle is no exception.

The seven taxing side-effects of a US passport

Boris Johnson has hit the news recently for a run in with the Inland Revenue Service (IRS) in the United States. Despite his deceptively English exterior, he holds a US passport and this means, like thousands of other US citizens living abroad, he still has to file US tax returns. Like the Hotel California you can check out - but you can never leave your filing requirements behind.