Accountancy Highlights

Reducing Your Marginal Rate of Tax


Umbrella Vs Limited Company set-up


Treasury to clamp down on stamp duty avoidance


Growth in the market for contractors in the UK


Proposal to merge PAYE and National Insurance

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Thursday
Nov242016

2016 Autumn Statement

Chancellor Phillip Hammond announced his first Autumn statement in November 2016 with a clear message that the UK is still open for business. This is likely to be the last Autumn Statement as he plans to move the Budget to the Autumn and replace it with an annual Spring statement.

Growth forecasts have been revised downwards due to uncertainty over the impact of Brexit. The Budget Deficit, previously forecast to move to a Surplus position by 2020 will no longer be achieved and will be pushed back a few years.

The Government focus will be on increased investment in infrastructure and innovation with a Budget of £23 billion to spend on relevant projects. £2 billion has been put aside to enable easier financing and aid research and development at disruptive technology companies in the UK to not only help them grow, but also remain in Britain. This is good news for Aim listed companies and also UK contractors, particularly in the IT or engineering sectors.

 

Significant tax announcements:

  • Personal Allowance to rise from £11,000 to £11,500 in April 2017. This is forecast to rise to £12,500 by 2020.
  • The higher rate income tax threshold to rise to £50,000 by 2020.
  • The National Living Wage to rise from £7.20 an hour to £7.50 from April 2017.
  • The rate of corporation tax will reduce to 17% by 2020.
  • From April 2017, tax deductions for interest will be restricted for large groups where debt exceeds 30% of UK taxable income.
  • From April 2017, Companies with taxable profits over £5m will be subject to new rules that restrict the offset of carried-forward losses to 50% of the profit.
  • New Flat rate of VAT of 16.5% for “Limited cost traders”. This will impact many Limited Company Contractors.

 

Other announcements:

  • Insurance premium tax to increase in June 2017 from 10% to 12%.
  • Proposed ban on upfront fees charged by letting agents.

 

In general, the announcements are in line with proposals from the previous Budget announcement and so there are no major surprises. The new Flat rate of VAT will impact UK Limited Company Contractors who will be worse off and will need to consider whether it is worthwhile being Flat rate registered post March 2017.

 

Wednesday
Nov232016

US Stock Market at Record High

The Dow Jones Industrial Index went through the 19,000 barrier for the first time in history, which has been on a bull run since Donald Trump won the US election. The S&P500 has risen above 2,200 since the election.

The markets suggests a wave of optimism in the US as Donald Trump has indicated that he will spend over $1 Trillion on new infrastructure spending. The UK is also expected to pump $1 billion into UK infrastructure including modernisation of the Broadband speeds throughout the country.

The implications of all this spending is great news for UK contractors. The market is buoyant, particularly in the IT contract market. If you are due an extension, you should review your rates. We look forward to a great year ahead.

Belsize Accountancy are specialist accountants for UK Limited Company Contractors. If you are thinking to move into contracting, or require assistance with your tax returns please feel free to contact us at info@Belsizeaccountancy.co.uk.

Monday
Nov072016

Chinese Delivery Company ZTO Express Raises $1.4 Billion in US IPO

Chinese company ZTO Express raised $1.4 billion through its IPO on the New York Stock Exchange making it the largest IPO in 2016. The Chinese delivery service is a spin off from Ali Baba and delivers parcels to Chinese consumers using Ali Baba’s online platform.