The new tax year is upon us. This month we welcome the new tax rates and regulations that come with every fresh tax period. As predicted, HMRC have introduced legislation that we all need to be aware of. This is when it pays to use the services of a quality chartered accountant in London, as they will ensure that the new regulations do not go unnoticed. Nevertheless, whether you employ an accountant in London or not, it is still crucial to know what lies ahead.
Let’s begin by taking a look at how the new tax year is going to impact VAT-registered businesses. There has been an increase in the VAT registration threshold. This is now £82,000 per annum, which represents a £1,000 increase from the year before. Therefore, if your VAT-able sales are in excess of £82,000 per year you must register your company for tax. There was also a £1,000 rise in the VAT de-registration threshold, which means you can deregister your VAT-registered business if your sales that are VAT-able fall bellow £80,000 per annum.
There have also been several changes that impact employees at small businesses for the year ahead. The cycle of deducting tax started on April 6th, as this is when the new payroll year begins. You will need to make sure that you have updated your employees’ tax codes as well. Some companies may also get a £2,000 employee allowance set against their Employer’s National Insurance. You will need to check whether you are entitled to this, thus it is certainly something that is worth bringing up with your chartered accountant in north London.
The new tax year has also brought about new National Insurance rates as well. The Employer’s National Insurance threshold has risen to £156 for every week. This means that, if your staff earns more than £156 per week in wages, you will need to start paying Employer’s National Insurance. Aside from this, Employee National Insurance has also increased, with the threshold now being £155 per week. Thus, if you have an employee that earns more than £155 a week, they will have to pay National Insurance on their wages.
So, now you have a basic oversight of some of the main changes that have come into play for the tax year ahead. This is a period of opportunity. It gives you the chance to get organised. You can ensure that your books are ready and that you are prepared for the new tax year ahead, so that you reduce the likelihood of any mistakes occurring and you can ensure everything is handled effectively.
The best thing to do is hire an accountant in London. There are plenty of professionals offering fixed fee accounting services for you to take advantage of. Aside from this, now is the time to ensure that all your invoices are up to date, that your expenses are in order and your banking and books match up. Record keeping is important. After all, you never know when you could get a visit from a HMRC inspector and the last thing you want is to be fined because you failed to keep your books up to check.