Controversy over Pension Tax Reforms
Nearly 4 million people could be affected by Treasury plans to cut the rate of pension tax relief for higher earners from 40% to 20% in next month’s budget. Given the long-term low-interest rates, the chancellor will be cautious about further disincentivizing saving. In 2019, only 6% of adults sought financial advice on this issue.
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Annual Investment Allowance (AIA) Increases to £1,000,000
The Annual Investment Allowance (AIA), introduced in April 2008, allows businesses to deduct the full cost of qualifying plant and machinery from profits in the purchase year. Normally capped at £200,000, the limit temporarily increased to £1,000,000 from 1 January 2019 to 31 December 2020 to boost business investment.
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Making Tax Digital for Income Tax
Self-employed businesses and landlords with annual income over £10,000 must follow MTD for Income Tax rules starting on or after 6 April 2023. Some businesses already use digital records and updates for HMRC. VAT-registered businesses over £85,000 must use MTD for VAT. Those below can join voluntarily and must comply by April 2022.
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New Website
Here at Clear Accountants, we’re excited to announce our newly designed website, reflecting our modern approach and excellent customer service. It features a news section with updates on Clear Accountants, HMRC, and Government Budgets. For testimonials or case studies, please contact us. Designed by Joe Consterdine.
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Small business growth forecasts hit two-year high
According to Hitachi Capital (UK) PLC’s Business Barometer, small business owners predicting growth rose from 26% to 36% since the year’s start. After the March 2020 lockdown, this recovery is promising. Yorkshire stands out, with 44% predicting growth. Contact us to save money, save time, and grow your business.
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Thinking about your retirement?
Planning for retirement is crucial for any UK working adult. As a limited company owner, you can benefit from tax relief on pension contributions. Discover how treating these contributions as business expenses can reduce your corporation tax bill and efficiently build your retirement fund.
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