Keep up to date with all the latest tax and financial news from CKLG
Latest News From CKLG Accountants
UK Business rate increases from April 2017
February 24, 2017
All properties used for business purposes are subject to business rates in the UK. This includes let holiday accommodation and guest houses. Although the tax is paid to the local authority, the multiplier (pence per £ of property value), is determined by central Government.
All premises subject to business rates were revalued in April 2015, and these values show some significant differences to the last revaluation which was undertaken in 2008
The April 2015 value will be used for setting the business rates payable from 1 April 2017. If you believe your business premises has been incorrectly valued you can appeal. Smaller properties are eligible for business rates relie
Please contact our Business Services Advisers Cambridge to discuss the impact of business rates increases on your small business.
Workplace pension schemes
February 22, 2017
All employers in the UK are required to provide access to a workplace pension scheme, and their employees must be enrolled in that scheme (auto-enrolment), unless they specifically opt out. This applies even to the smallest companies, although where the company only employs its directors, it can apply for exemption from the Pensions Regulator.
Employees must be ready to be enrolled in the workplace pension scheme by the “staging date”, which is set according to your PAYE scheme reference. Many small employers have a staging date of 1 March 2017 or 1 April 2017. If you miss your staging date you may receive a fixed £400 fine. However, you can apply for a six-week grace period to get your work place pension arrangements back on track.
Speak to one of our Small Business Accountants Cambridge on 01223 810 100 for more information about setting up a workplace pension for your employees.
Year End Tax Guide 2016/ 2017
February 16, 2017
With the end of the 2016/17 tax year fast approaching CKLG Accountants Cambridge are pleased to be able to share with you our Year End Tax Guide. The Guide highlights the potential tax planning measures that you may wish to consider or take for yourself or your business before 5 April 2017.
- Personal Allowances and Relief's
- Pension Contributions
- Inheritance Tax
- Capital Gains
- Corportation Tax
- Entrepreneurs’ relief
As always, our personal tax and business services team are on hand and would be delighted to assist you with any of your tax planning requirements.
Please contact us on 01223 810 100 to discuss your tax planning requirements with one of our Cambridge Tax Advisers
Exporting for small businesses
February 15, 2017
Internationalising your client base can be an intimidating prospect for small business owners with limited or no experience in trading overseas. Depending on your sector and your export destinations, deciding to sell products and services abroad can increase your expenditure, consume your time, and introduce new regulatory and administrative complexities.
Additionally, the decision taken by the British people to leave the EU has caused uncertainty for UK businesses trading in EU member states. It is understandable why an aspiring exporter might be slightly hesitant about committing to expand overseas.
Yet the appetite for exporting may not all be negative. Research published by the Federation of Small Businesses in 2016 shows that 21% of small businesses are considering exporting, a proportion of businesses that matches those that are already exporting.
As more details of the government’s Brexit-related plans emerge, such as the prime minister’s recent comments that she does not want the UK to remain part of the Common Commercial Policy, businesses will be better able to judge whether engaging in an exporting strategy is right for them.
Europe is one of many possible markets for British businesses. With careful planning, sensible decision-making and expert assistance, there’s no reason why small businesses can’t succeed in expanding overseas and reach new levels of prosperity.
If you are considering an expansion into the global markets, please speak to our Business Services Team who can advise you on what to consider and help you take your first steps.
R&D Tax Credits Tech Companies Cambridge
February 9, 2017
R&D tax relief currently provides an enhanced deduction of 230% of qualifying R&D revenue costs.
This is made up of:
- 100% of the costs which would normally be deducted without R&D tax relief; and
- 130% of those tax deductible costs.
This means that for every £100 of qualifying R&D costs, £230 is deducted from the company’s profits, or added to the company’s trading losses for tax purposes.
For expenditure incurred between 1 April 2012 and 31 March 2015 the deduction rate was 225% of qualifying costs. Relief at this lower rate can still be claimed if it is less than 2 years after the end of the relevant accounting period.
If the company makes a loss in the period for which an R&D claim is made, after deducting the R&D enhanced relief, part or all of that loss can be surrendered to HMRC for a payable tax credit. This is a cash sum paid to the company to use how it wishes.
For more information on R&D Tax Credits, talk to one of our Business Services Managers about the tax reliefs available to your business.
Inheritance Tax Changes 2017
February 3, 2017
The baseline rate of inheritance tax looks set to remain unchanged in 2017, at 40% for any amounts over the first £325,000 in the estate. However, in the new tax year the family home allowance will mean that an additional £100'000 in value can be inherited tax-free.
This allowance can be combined with a partner's allowance, meaning a couple will be able to pass on a combined £850'000. This amount is likely increase gradually over the next few years up to £1m by 2020.
For more information on inheritance tax, speak to one of our Cambridge Tax Advisers on 01223 810 100
If you receive child benefit you may need to file a tax return
February 2, 2017
Parents who receive child benefit need to keep a close watch on the total income of the highest earner in the family. When that figure exceeds £50,000 for the tax year, that individual (who may not be the person who receives the benefit), must complete a tax return in order to repay all or part of the child benefit paid to the family.
This crazy claw-back mechanism is called the high income child benefit charge (HICBC). It claws-back all of the child benefit when income of the highest earner exceeds £60,000 and part of it where income is between £50,000 and £60,000. HMRC will send you a bill for the HICBC not paid for earlier years, and you may also get a penalty for not completing a tax return.
Please speak to one of our Cambridge Tax Advisers on 01223 810 100 to discuss your perosnal tax situation.
Raising finance for your growing business
January 24, 2017
Raising finance is a crucial but challenging aspect of running a successful business, whether you’re launching a start-up or looking to expand your operations.
You can have the best product in the world, a solid business plan and a comprehensive marketing strategy, but if you can’t access the necessary funding, success will be much harder to achieve. Familiarising yourself with the different sources of finance available, from grants and loans to outside investment, is essential if you’re going to get the funding you require.
At CKLG Accountants in Cambridge we provide small businesses with the support and advice for securing the capital needed to start of grow a business.
Speak to one of our Cambridge accountants today on 01223 810 100.
VAT flat rate scheme
August 16, 2016
You can apply for the VAT flat rate scheme online as part of the process of registering your business for VAT. The system will ask you to enter a free text description of your business activity. If that doesn’t match one of the trade categories for the flat rate scheme, the computer suggests a category.
Be very careful about accepting the computer’s suggestion as it may not give the best result for your business. An incorrect category may mean you pay over more VAT to HMRC than is due for your type of business. We can help you with your VAT registration and application for the flat rate scheme.