How to maintain tax efficiency as a small business company director of your own limited company with the impending increase in dividend tax from April 2022 From the 6th April 2022 the tax cost of drawing dividends from your limited company will increase by 1.25% Currently, dividends are taxed on basic rate taxpayers at 7.5%,…
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Do I have to declare my income to the tax man?
Do you earn a bit of extra income? Not sure whether you need to tell the tax man? Well here’s the low down: If you earn a bit of extra cash be it through walking dogs, babysitting, selling knitted tea cosies on ebay, hiring out your GHD’s or selling the odd Aloe Vera product,…
Read MoreHow to split property income tax efficiently
Quite often we come across landlord clients who are married and their spouse may earn significantly more or significantly less than themselves and would benefit from tax advice on the splitting of their property rental income to optimise their income tax. If this is you, then read on… Property income by default for a married…
Read MoreUK Tax rates explained in plain and simple English (using buckets!)
People often get confused about tax and a common misconception is around how tax works for the higher tax bands. People often think “Oh I don’t want to earn too much as I’ll get taxed at 40% and I’ll lose out”. THAT’S NOT HOW IT WORKS! Here’s a handy guide to simplify and explain things.
Read MoreTaxable vs. Non-Taxable Income – Do You Need To Put It In Your Tax Return?
Taxable and non-taxable income Yesterday a client asked me about whether insurance payouts were a taxable income for her which got me thinking about writing a post on the less well known forms of taxable and non-taxable income as a quick reference guide for business owners. Some of these may surprise you…. Non-taxable income…
Read MoreTravelling Expenses – What You Need To Know
1. Self Employed Normal Place or base of work The first thing you need to think about is your normal place of work, so that you can work out what is your ordinary commute which is disallowed. If you rent an office or workspace anywhere then that generally be your normal place of work. If…
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