Allowances and Tax Bands: In 2017/18 the personal allowance will be £11,500 and the basic rate limit will be increased to £33,500. As a result, the higher rate threshold will be £45,000. Changes to Dividend Taxation A new Dividend Allowance is to be introduced for 2016/17 onwards. The current system of taxing dividends, complete with dividend tax credits, is abolished. The Dividend...

New rules are being introduced to allow HMRC to issue enforceable tax assessments. The new rules say that HMRC can base the new type of assessment on information it receives from you or other sources, e.g. your company, bank etc. HMRC will use the new style assessments from July 2016. It will be done in situation where HMRC thinks that you owe...

The new dividend tax regime is coming into force from 6 April 2016. The widely held opinion is that incorporation will still be more tax efficient than a sole trade, but that the savings will be reduced. The new rules will introduce a £5,000 dividend allowance (which uses up part of the tax band applicable to the individual), remove the concept of a...

If you have money to invest you could go for one of the government’s tax advantaged schemes like ISA or Enterrprise Investment Scheme or Venture Capital Trust as an alternative to pension contribution. The one major drawback with pension is that you can not get your money until you reach 55.

If you are registered as a contarctor for the purposes of HMRC’s Construction Industry Scheme ( CIS ), you must submit a report each month giving details of subcontractors you have paid and CIS deductions. You need to send a report even if you have not paid anyone, in which case a nil declaration should be made. If you don’t submit a...