Blog

We are working hard here at Brothertons to ensure all clients benefit from the digital environment we are moving into.

We will be working with all clients old and new to ensure they are not only compliant with changes in legislation but also benefit from the massive benefits that the new technologies can deliver.

Please call the office for any updates but be assured we are working hard on all aspects and if we haven’t spoken to you yet with regards the digital environment we will shortly.

We are using all leading software packages for our clients. We will be offering all clients help with new technologies and training will also be given so you can maximise the benefits of the digital changes. Sotware Pakages here include kashflow, SAGE, Xero and others.

We are off to Accountex in London this week to add to our offerings within the new digital world of accounting and will keep everyone informed on developments as we go along.

We are letting people know it still isn’t too late to come to us for help with their tax return for 16-17. (due date 31.01.18)

If you are struggling with getting this done and need some help we are happy to talk to you and take away the burden of struggling to get it all done on time. Please call the office on 01527 68235 and we will be happy to discuss your situation.

RESTRICTION ON INTEREST RELIEF for Buy to Let Investors is something we are taking very seriously at Brothertons. Even though the changes are being introduced over a 4 year period (2017-18 to 2020-21) so effectively over the next 5 years we are advising clients to consider this straight away and look at their situation in detail to ensure they are set up in the most appropriate way. Read more

From 16-17 new rules have been introduced which will affect the way dividends are taxed on individuals.

The tax credit which is currently associated with a net dividend is being abolished so there will be no more grossing up of a net dividend. A dividend tax allowance is being introduced which will make the first £5000.00 of dividend income tax free, no matter what level of income a person has. Any further dividend received in the tax year will be taxed at 7.5% 32.5% or 38.1% depending on if the income is in the basic, higher or additional rate band.Dividends within your allowance will still count towards your basic or higher rate bands and may therefore affect the rate of tax you pay on dividends you receive in excess of the £5000.00 allowance.

This will impact on many people and we are happy to discuss you situation on a one to one basis to ensure you remain as tax efficient as possible within the new rules.

This week we have made some major updates to our computer systems. Lucid Computer Solutions Ltd, our computer and IT support guys, based in Redditch, have again done a great job and everything has been implemented smoothly and efficiently as we have always come to expect, over the 9 years they have provided us with IT support.

Our Saturday ‘Auto-Enrolment meetings’ have proved very popular and we have managed to talk to a great number of business owners and address their concerns and answer their questions on AUTO-ENROLMENT.

Moving forward we are extending the Saturday opening times of 11am-4pm throughout the whole of August, so please call the office if you would like to call in and have your Auto-Enrolment questions answered.

We had discussions this week relating to property held jointly between spouses and there are specific rules that should be considered if the asset is income bearing. If spouses or civil partners own property jointly, are married and live together, care should be taken. From an income tax perspective the individuals are treated as beneficially entitled to the income in equal shares. This means for example, if a property is owned jointly, even in differing ownership splits, not 50%-50% the income arising from this property would be deemed to be split 50%-50%. Read more

This week we have been talking to clients about the impact the budget may have on them moving forward. Key areas of discussion have been the the New DIVIDEND TAX CREDIT and the way dividends will be taxed moving forward after 1st April 2016.

This new policy for taxing dividends will mean the current tax credit on a dividend is abolished with the first £5000.00 worth of dividends in a year not incurring any tax. After this level the rates will depend on your level of income in the year and any dividends dropping into the basic rate band will be taxed at 7.5%, dividends dropping into the higher rate band will be taxed at 32.50% and for dividends dropping into the additional rate band the rate will be 38.1%.

We have been eagerly awaiting the announcement of the ANNUAL INVESTMENT ALLOWANCE (AIA) and the new level has now been set at £200,000.00 from 1st January 2016.

The current level is £500,000.00. There are transitional rules for anyone claiming AIA in a year that straddles these rates and anyone looking at investing in capital assets should take some advice to ensure the timing of the purchase is advantageous with regards the AIA claimable.

Previous weeks we have talked about the increase in interest of BUY to LET investments. The new budget has potentially impacted on BUY to LET investors. Currently the amount of tax relief on mortgage interest an investor can claim is based on their marginal rate of tax, so if they are a higher rate tax payer, paying tax at 40% with some property profits, the reduction in taxable property income due to the ‘buy to let’ mortgage interest would have effectively given them tax relief at the 40%. Read more

This week we saw the first conservative led budget for almost 20 years. There are plenty of changes which we will be looking at over the forthcoming weeks and advising our clients accordingly. I have listed below some of the key announcements by George Osborne and will be looking at the detail, moving forward. Read more