We are now in the new 2018/19 tax year and a number of changes have been made to tax thresholds and rules which affect contractors, freelancers and small business owners. It is important to keep up with changes in order to manage your finances and remain tax efficient. To help, we’ve put together a quick guide to some of the changes for this financial year.
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are both part of the UK government’s initiative to encourage investment in small and medium businesses. The idea is to help SMEs raise funds to grow the business by offering investors tax relief on the finance they provide.
The 2017/2018 tax year is coming to an end. It’s that time of year that seems to creep up on many small business owners, no matter how good your intentions were to be prepared.Now is the time to make sure you have taken advantage of tax saving opportunities and invested where possible. It’s also time to start preparing for your year end self assessment.
Alphabet shares refer to shares issued by a limited company that have different rights attached to them as set out in the company’s articles of terms of issue. The shares are listed by a letter (‘A’, ‘B’ etc) and hence called alphabet shares. Businesses issue this type of share for various reasons.
Dividend tax rules changed from 6th April 2016 onwards. All taxpayers, regardless of the rate at which they pay tax are entitled to a dividend allowance. From 6th April 2016 this was £5,000 and is set to be decreased to just £2,000 from 6th April 2018.
As a contractor or freelancer, you may have used the festive break to think about the next steps you will take to improve your business. We hope you also used the holiday to think about your self-assessment tax return as the deadline is looming.
Ensuring your business is moving in the right direction is incredibly important for all business owners. Particularly so for small businesses where the owner may take on multiple roles. Which means it can be very easy to focus on the ‘here and now’ and not so much on the future.