POWER IN NUMBERS - ISSUE #21
Workplace Pensions – Auto-enrolment we can help you. Benefit and expenses - bespoke scale rates. Changes to the taxation of saving income. Rothmans Corporate Finance. Register of people with significant control. Reduction in corporation tax rate. National minimum wage rises. Capital gains tax rates. Farmers' averaging. Calling all Surrey entrepreneurs! New Partner appointed. Rothmans Venue Awards 2016 winner.
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The following news articles are in this issue:
Calling all Surrey entrepreneurs!
If you have turned your great idea into a successful business venture, this is your chance to be crowned ‘Entrepreneur of the Year’ in the prestigious SME Surrey Business Awards 2016. The ‘Entrepreneur of the Year’ award is sponsored by Rothmans Sutton and will be judged by Partners Graham Hindley and Andy Miller. Graham comments: “One of the firm’s key specialisms is in advising start-up businesses so we are greatly looking forward to meeting Surrey’s innovative entrepreneurs whose flair and dete...
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Benefit and Expenses – Bespoke Scale Rates
From 6 April 2016 there are a number of changes to the way in which benefits and expenses are reported to HMRC. HMRC have set out the maximum tax and NICs free allowances that can be paid by employers to employees for subsistence. Subject to qualifying conditions, the amounts are set out below: Minimum journey time Maximum amount of meal allowance 5 hours £5 10 hours £10 15 hours £25...
Read article Capital Gains Tax Rates
The government has reduced the higher rate of CGT from 28% to 20% and the basic rate from 18% to 10%. The trust CGT rate has also reduced from 28% to 20%. The 28% and 18% rates will continue to apply for carried interest and for chargeable gains on residential property that do not qualify for private residence relief. In addition, the 28% rate still applies for ATED related chargeable gains accruing to any person (principally companies). These changes have taken effect for disposals made on or after 6 April 2016. The rate for disposals qu...
Read article Changes to the Taxation of Saving Income
There are significant changes to the income tax rules from 6 April 2016 which affect the taxation of savings income. From 6 April 2016, if you are a basic taxpayer you may be able to receive up to £1,000 in savings income tax free. Higher rate taxpayers will be able to receive up to £500. Savings income includes the following: • interest from bank and building societies accounts • interest from credit union or National Savings and Investment accounts • income from government or company bonds • i...
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Farmers' Averaging
Changes have been made to the rules which allow farmers to average their profits for tax purposes. Under the new rules, unincorporated farmers will be able to average their profits for income tax purposes over five years rather than the previous two years. The amendment to the rules which took effect from 6 April 2016 is aimed at helping farmers with fluctuating profits better manage the ‘risk and the impact of global volatility which has become an inherent feature of the agricultural industry’. Chancellor George Osborne said:...
Read article National Minimum wage
The National Minimum Wage (NMW) rates will increase from 1 October 2016 as follows: Current rate Rate from 1 October 2016 21-24 year olds £6.70 £6.95 18-20 year olds £5.30 £5.55 16-17 year olds £3.87 £4.00 Apprentice rate* £3.30 £3.40...
Read article Reduction in Corporation Tax Rate
The main rate of corporation tax is currently 20% and this rate will continue for the Financial Year beginning on 1 April 2016. In the following years the rate of tax will fall as follows: • 19% for the Financial Years beginning on 1 April 2017, 1 April 2018 and 1 April 2019. • 17% for the Financial Year beginning on 1 April 2020. The 17% rate from April 2020 is a reduction of 1% from the rate previously announced by the Chancellor in his Summer Budget in 2015. CBI Director-General, Carolyn Fairbairn, said, “The redu...
Read article Register of People with Significant Control
From April 2016, rules were introduced which require companies to keep a register of people with significant control (PSC register). In addition, the details of people with significant control (PSCs) will have to be filed with Companies House from 30 June 2016. A PSC is defined as an individual that: • holds, directly or indirectly, more than 25% of the shares or voting rights in the company; or • holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of the company; or • ha...
Read article Workplace Pensions - Auto Enrolment
You are no doubt aware that the government introduced measures in the 2008 and 2011 Pensions Acts designed to increase workplace pension saving. Under the ‘auto-enrolment scheme’, employers will have to enrol all of their qualifying workers into a workplace pension scheme and each employee will have to actively opt out if they do not want to be a member. Contributions will start at 1% from the employee and 1% from the employer. Once all employers have implemented the scheme, contributions will increase in stages with firms eventu...
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New partner appointed for Rothmans Winchester
Jonathan Poulter has been appointed a partner of the Rothmans Winchester office. Jonathan, who grew up in Winchester, joined Rothmans in 2009 and was appointed a director in 2012. He previously worked for a top-5 accountancy firm in London and Southampton. Jonathan qualified as a Chartered Accountant whilst working in audit before moving to corporation tax to pursue a keen interest in taxation. He then qualified as a Chartered Tax Adviser and now operates as a general practitioner, specialising in accountancy and tax planning for owner-manag...
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Venus Awards Winner
The winner of the Rothmans LLP New Business Award for a company less than 2 years old, one of the categories in the prestigious Venus Awards, has been announced. More than 350 people attended a glittering ceremony and gala dinner at the Hilton, at the Ageas Bowl in Southampton, to find out which of over a thousand nominations and applications would win each business category in the awards dubbed the “Working Women’s Oscars”. The New Business Award winner was named as Samantha Kingston, whose company, Virtual Umbrell...
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