financial accountant / 5 posts found
Child benefit tax trap
This post is a reminder that a family claiming the weekly Child Benefit (currently, £20.70 a week for eldest or only child and £13.70 a week for additional children) may get an unwelcome tax bill if either parents’ income exceeds £50,000 during a tax year. If either parent had income over £50,000 for the tax year 2018-19, and: either partner received Child Benefit, or someone else received Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep. Then part or all of the Child Benefit received may [...]
How are dividends taxed?
Dividends received from shares held in UK companies form part of a tax-payers self-assessment. The payments are made by the paying company without any deduction of tax and therefore the amount received is the sum that needs to be declared. Dividends are paid out of the company’s retained profits – these are profits after any corporation tax has been paid – once these reserves are exhausted, it is illegal to declare or pay any further dividends. Tax payable on dividends received by shareholders is not payable at income rates (20%, 40% or 45%), but as hybrid rates. The rates for [...]
As easy as 1, 2, 3…
Well maybe not quite, but you should have your important figures at your fingertips and as ready to slip off your tongue as 1, 2, 3. The world of business can be a difficult place in these times, so arming yourself with data will give you a head start. We know that knowledge equals power, but it is the quality of the knowledge that is important. How much use is there in knowing last year’s profit margin? Not much, when you trying to make a decision based on events unfolding before your eyes. But knowing the current profit margin on [...]
Travelling to the EU after Brexit
The following guidance was published on the GOV.UK website 20 December 2018. Much of the guidance has been updated on the basis of a no-deal Brexit. UK citizens planning a trip to the EU and EEA before 29 March 2019 are not affected by Brexit changes. The following comments assume a no-deal Brexit and would apply from 29 March 2019 Flying to the EU from the UK Flights should continue as today. Both the UK and EU want flights to continue without any disruption. There will be no impact to direct flights to non-EU countries. Before you [...]
What’s the difference?
Choosing an accountant is an important business decision to make. Surrounding yourself with a good team involves picking people that you trust to work with you and help you to achieve the goals that you want from your business. Understanding the type of accountant that you need is an element of the decision. Generally, there are two types of accountants: financial accountants and management accountants. So, what’s the difference? Financial accountants produce quarterly and annual statements showing what has been happening in your business. These reports are viewed by external personnel such as shareholders, and the tax office. They tend [...]