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Tax on dividends

In 2017/18 the first £5,000 of dividends are chargeable to tax at 0% (the Dividend Allowance). From 6 April 2018 the Dividend Allowance is reduced to £2,000. Dividends received above the allowance are taxed at the following rates:

7.5% for basic rate taxpayers
32.5% for higher rate taxpayers
38.1% for additional rate taxpayers.
Dividends within the allowance still count towards an individual’s basic or higher rate band and so may affect the rate of tax paid on dividends above the Dividend Allowance.

To determine which tax band dividends fall into, dividends are treated as the last type of income to be taxed.
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Always a good idea get your tax return for 2018 completed nice and early. AGA ACCOUNTANTS In Harrow can help.
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AGA accountants offers a bespoke package accounting and tax needs of contractors and small Ltd companies.

Accountants based in Harrow . Contact us for more details
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Expert Small Business Accountants. Free Consultations & Fixed Fees!!

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HMRC waives fee for late tax returns

Up to 890,000 people may not have to pay the £100 late filing fee normally imposed by HM Revenue & Customs (HMRC) on individuals who fail to submit their tax returns on time.

HMRC confirmed this, after a leaked memo was exposed by the Telegraph, explaining that a ‘reasonable’ excuse must be provided before they will waive the fee. According to the memo, an individual’s mitigating circumstances would not be subject to further investigation.

An HMRC spokesperson said: ‘We want to focus more and more of our resources on investigating major tax avoidance and evasion rather than penalising ordinary people who are trying to do the right thing’.

An example list of reasonable excuses has been released, including: death of a partner, an unexpected hospital stay, failure of computer software, fire or postal service delays.

Individuals who filed their tax returns late must have submitted an appeal form in order to be exempt from the fee, otherwise they will still be liable to pay £100

Contact us to find out more. #agapartners accountants in Harrow and Greater London
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Basic-rate taxpayers do not pay any #tax on dividends currently, under the new rules only the first £5,000 of #dividend income a year will be exempt. Contact us to find out more.
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Income tax on buy-to-let
The income you receive as rent is taxable. You need to declare any rent you receive as part of your Self Assessment tax return. The tax on your income is then charged in accordance with your income tax banding (20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate).
However, you can minimise the tax you have to pay by deducting certain "allowable expenses" from your taxable rental income. Allowable expenses include:
Rents, rates, insurance, ground rents etc
Property repairs and maintenance
Interest on buy-to-let mortgages and other finance charges
Legal, management and other professional fees such as letting agency
Other property expenses including buildings insurance premiums
The Summer Budget 2015 has reduced the amount of tax relief that is available for interest on buy-to-let mortgages. Before that, landlords paying higher (40%) or additional (45%) rate tax could claim tax relief at their highest rate, but the Budget changes mean that tax relief can only be reclaimed at the basic rate (20%), whatever rate of tax the landlord pays.
So, if you're a landlord who only pays basic rate tax, this change won't affect you, but if you pay at 40% or 45%, you'll be losing out.
Another change is the removal of the "wear and tear" allowance. Previously, a landlord could claim 10% of their rent as tax relief for wear and tear, but this is no longer the case. Instead, the allowance is being be replaced by a system that only allows landlords to claim tax relief when they replace furnishings.
If you're in any way unsure, an accountant can help you make the most of your allowable deductions so that you don't pay more tax than you have to. And don't worry – accountant's fees are tax deductable too!
One peculiar thing about rental income is that it doesn't qualify as income for pensions purposes. So if all your income is from renting property, you would not benefit from tax relief on your pension contributions as you can with most income. Income from a furnished holiday let,, however, does qualify!
HM Revenue and Customs requires you to keep a record of your income and expenses as a buy-to-let landlord for at least six years.
Capital gains tax on buy-to-let
Capital gains tax is payable when you sell a buy-to-let property at a profit from when you bought it. It isn't payable if you make a loss.
You get an annual tax-free allowance of capital gains that you can make each tax year, before capital gains tax is charged. This allowance for tax year 2015/16 is £11,100.
If you've sold a buy-to-let property, you'll need to declare this on your tax return. Capital gains tax is charged at 18% or 28% of the profit (depending on the taxable income and total capital gains you've made over the year). Again, a furnished holiday let may attract a lower 10% rate of CGT due to 'Entrepreneurs Relief' that applies to selling certain businesses.
If you've made a loss on a buy-to-let property sold in a previous year, you may be able to use this loss to reduce your capital gains bill. Similarly, you are able to deduct some expenses you've incurred in buying, selling or improving the property:
Solicitor's fees
Estate agent's fees
Costs involved in advertising the property for sale
Costs incurred in increasing the property's value (improvements, but not maintenance or general upkeep costs)
Stamp duty
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Benefits of having an "Online #Accountant"

1. Contact your accountant anytime and on the go. Out of ours service
2. Sign your #HMRC and Companies house submissions anytme
4. Cloud bookkeeping services. Done securely via the internet.
5. No need to travel and meet. Use telephone calls, email, confernece calls.
6. Go #Paperless
7. Fast communication
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The Apprentice 2015: a fishy business

October 15, 2015 by Rachel Miller

If you met some of the latest bunch of candidates on the new series of The Apprentice – say at a networking event or a job interview – you’d be forgiven for running a mile.

"I'm disgustingly ambitious" says Elle with a sneer. "I'm the captain at the front of a cavalry," says Richard. Joseph says he wants the cars, the girls and the power. And, to the sound of deafening alarm bells, Dan says he has made every mistake in the book with his business, including almost losing his parents' pension.

But this is classic Apprentice. Nothing much has changed. And, anyway, Lord Sugar and his henchfolk, Claude Littner and Baroness "call me Karren" Brady, don’t give two hoots about this kind of talk. Actions speak louder than words, as Lord Sugar says himself.
And so we have the first task. It is, as one of the candidates astutely says in the boardroom, a "margins" task. Not that you’d know it from the way the two teams run at it like bulls in a china shop.
The day starts bright and early at Billingsgate market where the candidates have to buy fish to make two dishes and then sell them to the lunch crowd in London's Camden Lock and the City.

Both teams look pretty incompetent but Connexus (Latin for unite apparently) just keeps making one mistake after another. Dishes are selected with no apparent regard for potential profit. Team leader April won’t even discuss it — they’re making tuna nicoise and fishcakes and that's that. There's no discussion, no number-crunching, no analysis of what people actually want to eat.

And, for a food blog writer, April really doesn’t have her finger on the culinary pulse. What about a fish taco or an asian fish curry? Something that's cheap to make and which will sell all day long.
But this is just the start of their problems. At the market, April completely fails to negotiate; she just buys from the very first person she meets. Mind you, team Versatile's approach to shopping around results in their stocking up on some seriously iffy squid. When it comes to food, there is such a thing as a false economy.
April's team, which includes the hapless Dan, then proceeds to stuff up the preparation. Instead of making 300 fishcakes - upon which their profits projections are undoubtedly based – they only manage to knock up 89. But April is not deterred. She plans to charge crazy prices; that is if they ever get to their destination. Missing the lunch-hour rush is yet another rookie mistake.

Out in the field, Dan sells precisely nothing. April, meanwhile, is still insisting on charging astronomic prices. The rest of the team only sell anything by totally ignoring her price points.

Back in the boardroom, the results speak for themselves. Team Versatile, with its calamari and fish finger sandwiches, has made a not-too-shabby £200 profit. Team Connexus has made £1.87. Yikes…
April selects "desperate Dan" and sous-chef Brett to face the firing line with her. Lord Sugar clearly wants to sack April and tells her so but Dan's performance is just so bad - he says he can’t sell to the public as if that's just a small detail - and so it's goodbye Dan as he mutters "thanks for the opportunity" less than graciously.

Meanwhile, all eyes are on Claude this week. He is the man for whom the phrase "if looks could kill" was invented. And yet even he appears to looks proud when it emerges that his team did something right. It's almost a Bake Off moment.

And so begins another series of the show that buries its business lessons fairly deeply as a shower of wannabe's run around making fools of themselves. That said, I'll probably be watching next week.
Copyright © 2015 Rachel Miller, editor of Marketing Donut.
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