Information & Links

Business Link

One of the most useful sites to visit for information regarding running and improving your business is Gov.uk. Here you will find free business advice to help you develop your business. This site is directly linked to HMRC, so that all the information you need is held within these two sites.

Tax and NI information

For all your tax and National Insurance queries visit the HMRC site:. Here is some of the information you might be interested to know:

Penalties for missing the tax return deadline

Length of Delay Penalty you have to pay Notes
1 day late & up to 3 months A fixed penalty of £100 This applies even if you have no tax to pay or have paid the tax you owe.
After 3 months £10 for each following day - up to a 90 day maximum of £900 This is as well as the fixed penalty above.
6 months £300 or 5% of the tax due, whichever is the higher This is as well as the penalties above.
9 months £300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead These are as well as the penalties above.
Interest Interest on the amounts outstanding are also charged These are as well as the penalties above.

Personal Tax

Total income means everything you receive from all taxable sources. That means you need to include things like pensions, interest on savings, property rental income etc, before the tax has been taken off.

Basic rate Personal Allowance:

Personal Allowance 2016-2017 tax year Basic rate tax 20% 2017-2018 Basic rate tax 20%
Basic £11,000 Up to £32,000 £11,500 Up to £33,500

From tax, if your 'adjusted net income' is over £100,000, your Personal Allowance is reduced by half of the amount - £1 for every £2 you have over that limit. If your income is large enough, your Personal Allowance could be reduced to nil. This £100,000 limit applies irrespective of your age.

Self Employed NI Rates

Class 2 and Class 4 National Insurance contributions
These will now be collected as part of the Self Assessment process as there are new measures now in practice to change the structure of Class 2 NICs so that only those with profits (chargeable to tax under Chapter 2, Part 2 Income Tax (Trading and Other Income) Act 2005) above a profits threshold will be liable - those without profits or with profits below this threshold will be able to pay Class 2 NICs voluntarily. Class 2 contributions count towards certain benefits, like the basic State Pension, Maternity Allowance and Bereavement Benefit. Current NI Class 2 rate is £2.80/week or £145.60/pa on profits over £5965.00 (2016-17) and £2.85/week or £148.20/pa on profits over £6025.00 (2017-18)

Class 4 National Insurance
The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9 per cent on annual profits between £8,060 and £43,000 (2016-17) and between £8064.00 and £45,000 (2017-18). Plus 2 per cent on any profit over those amounts. Class 4 NI is in addition to Class 2 contributions.

Your Class 2 and 4 National Insurance contributions payments are due on 31 January and 31 July, the same as a Self Assessment tax bill.

Paying VAT

You may have to register for VAT if your sales/invoices are over £83,000 (2016-17) and £85,000 (2017-18) for the last 12 months, otherwise you may be able to register voluntarily, if you really want to!

FSB

Federation Of Small Businesses . This organisation provides information to small businesses and exists to promote and protect the interests of all who own or manage their own business. There is a yearly subscription, but it is well worth it for the legal advice and protection alone.

DIY Bookkeeping

If you want to start by doing your own bookkeeping and can use Excel (beginner level is OK) then try out our Trial Bookkeeping Excel Template (see contact us and request a copy today). If you are happy with it let us know and we can send you the full version at a small fee, to help with the cost of development. Then, if you want us to submit your tax return for you on-line to HMRC, just let us know, we can do this for a small fee via our agency.