Flat Rate VAT Scheme

As you may have heard, there are changes being made by HMRC to the Flat Rate VAT scheme taking effect on 1st April 2017.

Due to the fact that more businesses have registered for the scheme than the government had originally predicted and they have consequently lost more revenue than forecast, HMRC appear to be encouraging businesses to leave the scheme.

Meant to be a tool to simplify accounting, many businesses have enjoyed ‘profits’ from this scheme and this has lead to the changes and the introduction of the Limited cost trader.

This means that if the VAT incurred on relevant goods is below 2% of gross turnover or amounts in total to less than £1,000, you will not be able to apply the flat rate percentage that has previously been used.

Instead you will have to apply the rate of 16.5% to the gross turnover which effectively means there is no benefit to being on the flat rate scheme other than for simplified accounting (the original idea behind the scheme)

We are actively speaking to our many clients who have been or remain on the Flat rate scheme in the coming days to determine the best way forward and would welcome contact from any businesses who wish to discuss this further.

Marriage Allowance

As part of our work on tax returns over the past few months we have seen an increasing number of couples qualifying for Marriage allowance whereby £1,100 of the personal allowance can be transferred to your Husband, Wife or Civil partner if they earn more than you, which would result in a reduction of tax up to £220 per year.
To benefit as a couple, you (as the lower earner) must have an income of £11,000 or less.
This claim can be backdated to 6th April 2015 and we are happy to guide our clients through the process of claiming the additional reduction in tax.
If you or your partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead.
Please contact the office to discuss this further with one of our experts who will be glad to help.

Brexit: How could the vote affect you and your business?

Following the UK’s recent decision to leave the EU, many people have already asked how it will affect them and their business and investment plans.

The UK economy remains strong and while it is unclear on how this will impact future legislation, one thing which we can assure you of at Coombe Hope is that we will be keeping right up to date with any changes and passing on the very latest news to our clients, both old and new.

Tax and financial planning is now more important than ever and we are always on hand to offer our expert, proactive advice on both personal and business finances, tax, compliance and strategic planning.

Please contact us should you require any further assistance.

230,000 benefit as pension revolution marks one year milestone

As the government marks the first anniversary of the pension’s revolution, the first full year figures reveal that over 230,000 savers have already taken advantage of the new landmark freedoms. Click on the link below for the full article.



Changes after Finance Bill 2016

Changes were made in the Finance Bill 2016 to the way in which Limited Companies are taxed and how their losses are treated

Corporation tax rates
The main rate of corporation tax is currently 20% and this rate will continue for the Financial Year beginning on 1 April 2016.
The main rate of corporation tax will then be reduced 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.

Corporate tax loss relief
The government will introduce two reforms to corporate tax losses from April 2017.
Losses arising on or after 1 April 2017 will be useable, when carried forward, against profits from other income streams or other companies within a group.
However, from 1 April 2017, companies will only be able to use losses carried forward against up to 50% of their profits above £5 million. For groups, the £5 million allowance will apply to the group. This will appear in Finance Bill 2017.

We are able to look after all of your company needs, whether it is a start up or a well established business and offer a wide range of services which can be tailored to your specific business model.

March 2016 update

With effect from 6th April 2016 the way that profit is extracted from Limited Companies is changing.
In particular the previous dividend regime is changing with a new £5,000 allowance being introduced whereby the first £5,000 drawn in dividends will be taxed at 0%.
Above this figure, all dividends will be taxed at 7.5% higher than the current rates. This will be borne by the individual and will therefore have implications for most SMEs and in particular owner managed companies.
It is now a good time to speak to us about how this will affect your Limited company and whether it is still beneficial to be incorporated and to determine the best structure in which to run your business.

It is also expected that the Chancellor will implement a tax free savings interest threshold for individuals of £1,000 per annum from 6th April 2016. This is one of a number of interesting developments which are expected to be confirmed in the Budget on 16th March 2016. We will be keeping on top of this on the day as we look to continue passing on the most up to date advice to our clients

Business Rates Relief

In the autumn Statement on 5th December 2013, the government announced that it will provide business rates relief of up to £1,000 to all occupied retail properties with a rateable value of £50,000 or less that are wholly or mainly being used as shops, restaurants, cafes and drinking establishments in each of the years 2014/15 and 2015/16.
Here at Coombe Hope we would urge you to check your most recent business rates bill as there may have been a form included which will allow you to claim the relief.

Alternatively, some local authorities have been automatically applying the relief so check your bill and see if this has happened.
If you would like to know more about this please contact us at Coombe Hope and we will be happy to assist you with any claim you may need to submit.