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Cutter & Co. Blog

 

We want our clients to experience the friendly atmosphere we have here at Cutter & Co. As such, we want to share with you any news from within our practice.

26.04.2016 | written by Mike T
  Champagne

Dave Hazlehurst Appointed Director of Cutter & Co

 

After joining the firm in 2005, Dave took his ACCA qualification which he passed with flying colours, leading him to want to study further and become a chartered tax advisor, which he did with success in 2010.

Earlier in the year Dave celebrated 10 years employment at Cutter & Co, and after being promoted to manager in 2010, he has now made the step up to Director.

Congratulations Dave – let’s hope the next 10 years are just as successful!

23.03.2016 | written by Dave Hazlehurst

2016 Budget Breakdown

Business Tax

  •            Corporation Tax Rate Reduction

The main rate of corporation tax will be reduced by a further 1% to 17% from 1 April 2020.  This effectively means that the previously announced 18% will not come into effect.

  •            Loss Relief

Losses made after 1 April 2017 can be carried forward against profits from other incomes streams (previously only profits of the same trade).  If profits exceed £5m then only 50% of the profits can be offset.

  •           Tax Deductible Interest Restrictions

A fixed rate rule limiting Corporation Tax deductions for interest will be introduced from 1 April 2017.  Tax deductible interest expenses will generally be limited to 30% of UK earnings before interest, tax, depreciation and amortisation.

  •            Loan to participators (s455)

The rate of tax paid on loans to participators in a close company will increase from 25% to 32.5% from 6 April 2016.  This aligns the rate of tax payable with the main rate of tax payable on dividends.

Personal Tax

  •           The rate of capital gains tax is being reduced by 8% from 6 April 2016.  This is now 20% for a higher rate taxpayer and 10% for a basic rate taxpayer.  The exceptions to this are gains accruing on residential property and carried interest.
  •            An extension to Entrepreneurs Relief was announced on the disposal of qualifying shares by qualifying individuals (not including officers or employees).  The shares must:

o   Be newly issues

o   Be in an unlisted trading company

o   Held for three years and issued after 17 March 2016

  •            From April 2016 new allowances for the first £1,000 of trading income and first £1,000 of property income will be introduced.  This will be tax free.
  •           The rules on termination payments are going to be tightened and aligned with National Insurance.  Any payments in lieu of notice will become taxable as earnings and an termination payments that exceed £30K will suffer employers NI.
  •            A new lifetime ISA will be introduced from April 2017 so individuals under the age of 40 can save up to £4,000 each year which will be topped up at the end of each tax year with a 25% bonus from the government.  The money saved can be used to buy a first home worth up to £450,000 or can be withdrawn from the age of 60.  This limit will form part of the new £20,000 ISA limit.  This can be withdrawn for other reasons but the government bonus will need to repaid and a 5% charges.  A consultation document will be published soon to discuss allowing these funds for other specific life events without the additional charge.

Stamp Duty

  •            SDLT rates on non-residential property have been overhauled meaning that the old ‘slab’ system is replaced with a slice system like that now on residential property.  Properties up to £150,000 will be charges 0%, the next £100,000 at 2% and the remainder at 5%
  •            The previously announced additional 3% will apply to additional residential properties from 1 April 2016.  Following consultation, purchasers will not incur the additional charge of they replace a main residence which has been sold within 36 months (rather than the originally proposed 18 months).  In addition there is no specific exemption for companies which make significant investment in residential property as had previously been proposed in the consultation.  The higher rates will apply to all acquisitions made other than by individuals.

 

 

 

 

06.03.2016 | written by Cutter & Co

How to Find The Right Accountant for Your Business

It’s surprising how many small businesses fail simply because they do not spend enough time choosing the best accountant possible. This is one of the most important business decisions that a small business has to make. Here we discuss why that is and how you can ensure that you make the right choice first time around. The only proven way to hire the best accountant for your own business is to ask the right questions, and here are a few examples of what you need to consider:

1. Are we a close match? – Your accountant will need to have both expertise and experience when it comes to dealing with a small business just like yours. Don’t be embarrassed if you are a little naive when it comes to making business decisions this early on in the game. Your accountant should be willing and able to help you fill in the gaps as and when required. Look for a local accountant who is a similar size to your firm and one who can show a proven track record of assisting smaller businesses.

2. Why should I hire you? – Okay, this may seem a little direct but why shouldn’t you ask this question instead of beating around the bush? This decision is as important as hiring a new member of staff and nobody takes that decision lightly. Your accountant will be your business partner, so do not be afraid to ask for some proof that they will be a credit and not a burden when it comes to helping your business succeed.

3. Can you make my money go further? – Your accountant should have the knowledge and ability to make your business funds stretch further than they are right now. They need to have the tax related knowledge to maximise your cash andaccountancy expertise to push your bookkeepingskills up a few levels. Your tax issues should also be part and parcel of their remit as well as looking at ways to save money when making purchases for your business.

When you have asked your accountant these questions and have chosen the firm with the best answers, you can start concentrating on your core business knowing that your new business partner has your financial issues covered.  

 

14.01.2016 | written by Cutter & Co

January Tax Deadline

The New Year is usually associated with resolutions and promises that we can’t seem to keep. But you might be a little surprised to learn that it is also a time when many of us decided to submit our tax returns online. According to HMRC, on 31st December over 24,500 people did exactly this, an increase of 2.8% from the previous year.

Taxing times

On New Year’s Day itself, another 11,467 people followed suit and on Christmas Day, that figure was more than 2,000. This is probably down to the fact that penalties for late tax returns will kick in from 31st January and that is when things can start to get rather messy. Although many people seem to leave it to the last minute every year, it is not a practice that is recommended by Cutter & Co or HMRC.

Tips that work

If you are guilty of always leaving your personal tax returns to the last minute, why not try a few of the following tips and see if you can get yours completed sooner rather than later next year?

• Register Online

• Always have your paperwork handy

• No need to complete the process in one session

• Submit early and avoid the £100 penalty

• Always save a copy before submitting your return

David Cutter’s personal taxation services

If you feel as if you would benefit from expert and friendly advice with regards your personal tax return, please do not hesitate to come and speak to us at Cutter & Co Chartered Accountants. Our team of experts will help you to file your returns in a timely fashion and we can help you to plan for the future. We have a member of the Chartered Institute of Tax amongst our staff and because of this you will always be receiving the very best tax advice. So please speak to us at David Cutter if you want to ensure that you are paying the correct amount of tax for the forthcoming year.

 

17.11.2015| written by Cutter & Co

Why now is a great time for UK Businesses

 

After years of uncertainty, the UK can now stand up and be proud of the fact that we live in a place where business is great and the opportunities are just getting better each day! Government strategy aimed at kick-starting the economy following the recent financial crash seems to be pushing the economy in the right direction again.

Facts and Figures

But it isn’t all great news, despite the recent rise in prosperity, the UK has slipped from 13th to 15th in terms of wellbeing and finances. However, we climbed a mighty nine places to 19th overall in the financial table and that is from a pool of 142 countries worldwide. These places are based on a mixture of perceived job availability, inflation and unemployment rates.

Economic Transformation

According to the programme director of the prosperity index, the UK is now one of the most prosperous countries in the world today. Apparently George Osbourne should receive some credit due to the fact that his party have made it far easier for new business startups to exist. The same index places us at number 6 in terms of entrepreneur possibility and the UK is actually the best place in the whole of the EU to start up your own business.

David Cutter& Co

With such an air of positivity doing the rounds here in the UK, Cutter & Co would love to be able to help all budding entrepreneurs to realise their dream of running their own business. We are always delighted to help and can offer friendly and expert advice that begins with the formation of your company right through to developing a sound business plan and making your tax returns every year. They say that behind every great business is a great accountant and here at David Cutter& Co, we totally understand that sentiment 100%.

So if you are thinking about starting up your own company this year or the next, Cutter & Co Chartered Accountants are here to help and we are waiting for your call.

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Directors:  Paul Cutter FCA | Kate Jones FCCA, ACA | Dave Hazlehurst FCCA, CTA

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