‘Reap benefits of tax changes’
Businesses warned of making potential pitfalls
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.