Happy new tax year everyone!  And hasn’t it started with a beautiful sunny day!  Let’s hope the tax year continues to give us bright prospects….

Certainly the personal tax allowance has gone up to £10,600 per year so that is good news.  The Conservatives will tell you that this represents a tax cut for over 26 million people.

But the weekly primary threshold for national insurance has only increased marginally, so if you are a director taking only the minimum salary and topping up on dividends, you will not see much of an increase in your monthly pay without incurring NI liabilities.

Also, the pension reforms come into force today, with flexible-access draw down – either a cash lump sum or a series of encashments, or an income.  There are also welcome changes on what happens to your pension on death – with the opportunity to pass an inheritance through the generations.

So there are signs for optimism at the beginning of this new tax year.

Aside from the new tax year, there is a marked increase in the number of SMEs using cloud accounting software packages, which means it is easier for their accountant to access up to date data.  So you may want to get your accountant to provide more management information and even a virtual FD role for your business, so you can see how your business is growing.

If we can provide help or guidance about any of the above, or anything else you need assistance with, please feel free to ring us on 0800 180 4252 now.

Happy New Year!