Monthly Archives: March 2017

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Leaving the Flat Rate VAT Scheme – Low Cost Traders

17th March 2017

Businesses that are deemed to be "low cost traders", which means those that: Spend less than 2% of their turnover on consumables/stock/leasing equipment (and more than £1k) annually; Will pay 19.98% VAT on their net sales to HMRC, with no deduction for VAT on their purchases. In this scenario, the businesses that meet the definition of "low cost trader" should either de-register from VAT entirely (if they are below the VAT de-registration threshold), or alternatively, leave the VAT...

Extra taxes on Dividends

15th March 2017

There has been a lot of news recently, about National Insurance going up for the self employed, with many crying out and the government back-tracking. However, the extra dividend tax should cause an even larger out-cry, as it is a 7.5% tax rise, not just 1 percent like the extra national insurance. I've just advised some clients on their higher tax bills. For someone taking £100k income each year (small salary, large dividend), their personal tax bills are now £7k higher than they...