Threshold for Director Loans Set to Increase to £10,000

The threshold for employment related taxable cheap loans to be treated as earnings of employment, will increase from the current threshold of £5,000 to £10,000 for 2014/15 and subsequent tax years. As long as the total outstanding balances on all such loans do not exceed the threshold at any time in a tax year, there is no tax charge.

This will be beneficial to many Limited Company Contractors who operate a director’s loan account to manage their affairs.

Rise In Demand For IT Contractors in London and the South East

Reports that the UK economy has come out of recession has been met with increased confidence in the marketplace, particularly in London and the South East. The demand for IT contractors has risen significantly in 2013 as companies require skilled interim staff to kick start major projects. IT contractors with Java, C# or PHP are in short supply and are well placed to negotiate rate rises in their contract renewals.

If you are an IT developer with Java or PHP skills and have been considering a move to contracting now could be the time to make your move. IT contractors operating through a Limited company are rewarded with significantly higher pay than their equivalent full time employees, fixed term contractors or those operating through an umbrella company. Quite simply, Limited company contractors operate through the most tax efficient set up and can earn more than 50% than their full time equivalents with the right advice.

Feel free to contact us if you would like to discuss your set up as a contractor. Quite often recruiters will push first-time or inexperienced contractors to use umbrella or PAYE set ups which are not in your best interests. Belsize Accountancy are happy to advise you but we recommend that you contact us prior to signing your new contract. For more information contact us on 0207 043 0052 or use our online form on http://belsizeaccountancy.co.uk/contact-us/.

Rise in Mortgage Lending in the UK

Mortgage lending has risen to its highest levels since 2008, according to the Financial Times. This is due to a combination of record low interest rates together with a £12 billion boost to demand through the new government Help to Buy scheme. Lending to first-time home buyers has hit its highest quarterly total since 2007. This increase has resulted in a steady rise in house prices, particularly in London.

Research from the Lloyds Banking Group has found that mortgages are at their most affordable in 14 years, with payments accounting for just over 27 per cent of a new borrower's income in the second quarter of 2013. The self-employed are now finding it easier to obtain home loans as lenders ease their criteria. This has resulted in UK house prices reaching a five year high and are continuing to rise.

If you are self employed and are looking for a mortgage you will be required to produce at least 2 years’ accounts together with a projection as certified by a Qualified accountant. Belsize Accountancy are specialist accountants for contractors and the self employed and are qualified to provide the required certification. Our flexible team are able to respond quickly to meet your requirements. Feel free to contact us for details.