‘Reap ben­e­fits of tax changes’

Busi­nesses warned of mak­ing po­ten­tial pit­falls

Buckinghamshire Advertiser - - BUSINESS - by Camilla Good­man camilla.good­man@trin­i­tymir­ror.com Twit­ter: @Camil­la_Good­man

CHE­SHAM busi­ness own­ers are be­ing urged to make a vi­tal new fi­nan­cial year res­o­lu­tion to meet ma­jor changes com­ing into ef­fect in April.

An­drew Twynam, who owns TaxAs­sist Ac­coun­tants in Che­sham, said: “Small busi­nesses are fac­ing an un­prece­dented amount of new leg­is­la­tion, tax rules and in­creased re­spon­si­bil­i­ties and many of the changes come into ef­fect from this April.

“We want to en­sure that lo­cal busi­ness own­ers reap the ben­e­fits of the changes and avoid the po­ten­tial pit­falls and penal­ties. We’re urg­ing them to make a new fi­nan­cial year res­o­lu­tion to tackle the new chal­lenges and en­sure they don’t miss out on any tax breaks they’re en­ti­tled to.

“The new fi­nan­cial year brings a num­ber of chal­lenges and op­por­tu­ni­ties for small busi­nesses in a highly com­pet­i­tive mar­ket and frag­ile econ­omy. We want to en­sure that they don’t get caught out by the new rules and risk hefty fines and penal­ties.”

New reg­u­la­tions which could im­pact small busi­ness this year in­clude:

Work­place pen­sion schemes. All busi­ness own­ers must au­to­mat­i­cally en­rol el­i­gi­ble em­ploy­ees and con­trib­ute to their pen­sion pot. Your ‘stag­ing date’, the date the du­ties ap­ply, will vary but the pen­sions reg­u­la­tor should con­firm your date in writ­ing.

Many busi­ness own­ers who rely on div­i­dends as their main source of in­come will find they pay more tax due to sig­nif­i­cant changes in the way div­i­dends are taxed.

The new Na­tional Liv­ing Wage of a min­i­mum £7.20 per hour is in­tro­duced for all em­ploy­ees aged 25 and over. This will be a con­sid­er­able in­crease in costs for em­ploy­ers.

In­tro­duc­tion of the Per­sonal Sav­ings Al­lowance, which means a ba­sic rate tax­payer will be able to earn up to £1,000 in sav­ings in­come tax-free.

The Em­ploy­ment Al­lowance, which is off­set against an em­ployer’s Na­tional In­surance bill, is be­ing in­creased to £3,000.

Sin­gle di­rec­tor com­pa­nies will no longer be el­i­gi­ble for the Em­ploy­ment Al­lowance so con­trac­tors and con­sul­tants may lose out.

Rent-a-room re­lief is be­ing in­creased to £7,500, which is good news for those rent­ing out spare rooms to stu­dents or lodgers.

TaxAs­sist Ac­coun­tants Che­sham pro­vides tax and ac­coun­tancy ad­vice and ser­vices purely to small busi­nesses.

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