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Tel: (+44) 020 3900 0900
Email: info@triumphacc.co.uk

Client Zone

Getting to know you

When we take on a new client we like to create a good relationship right from the start. So we feel that it is only wise on our first consultation with the client to fully explain how HM Revenue and Customs works, as well as the business and accountants duties that are required to be fulfilled within the HMRC system.

Which business structure is best for you?

Next is the structure of the organisation: what is better suited for a client and what are their intentions with regards to becoming a sole trader, partnership or limited company? We carefully explain the differences between the different formations, the strengths and weaknesses of each type of business structure, and the client and accountant’s duties regarding each. Record-keeping differences are explained, as are tax return deadlines and accounts, and the best strategies available for the payment of income tax and V.A.T.

Some of our clients

We have a wide array of varied clients from all sorts of different industries, so you can be sure we would be able to understand your organisation and give you the professional service that you deserve.

Have a look at our current clients, and see how easily you could fit in:

Building Industry

Clients include: architects, construction firms and builders

Health and Fitness

Clients include:  beauty salons, doctors, fitness centres and studios, pharmacies

Logistics

Clients include: haulage firms and couriers, importers and exporters

Retail

Clients include: hospitality businesses (restaurants), online retailers, shops (butchers)

Service Industry

Clients include:  cleaning businesses, consultancies, designers and marketing businesses, interior designers, language schools

Welcome to our client zone, where you can log into your business account with Quickbooks accounting software that addresses the specific needs of freelancers, small businesses and their accountants.

Why use Quickbooks:

  • Upload or download business documents
  • Connect to your business bank account and download transactions
  • Easily check on your business’s financial statements or performance
  • Profit and Loss, Balance Sheet, Trial Balance, Dividend Reports
  • Record and upload invoices with a picture from your smart phone
  • Estimating templates
  • Time tracking for freelancers
  • Set up recurring invoices and automatic reminders for your clients
  • HMRC-compliant payroll
  • Predict future corporate tax due
  • Ready for MAKING TAX DIGITAL!
  • 50,000 business owners can’t be wrong!

We are looking to working with more relevant cloud-based packages in the future, so as to be more flexible for our customers.

Tax Rates & Allowances

Please note it is taxable income which applies in this assessment, including earnings, pensions in payment, cash interest, fixed interest income, dividends and rent. ISA income is not included.
Allowance 2019/20
Personal Allowance £12,500
Transferable tax allowance for married couples/civil partners £1,250
Personal Savings Allowance (PSA) £1,000 for Basic rate taxpayers
£500 for Higher rate taxpayers
Not available for Additional rate taxpayers
Dividend Allowance £2,000

A Married Couple’s allowance (born pre 6/4/35) or Blind Person’s allowance may also apply.

The transferrable tax allowance only applies where neither individual is a higher or additional rate tax payer. The maximum tax reduction available is £250.

The personal allowance reduces by £1 for every £2 of income above £100,000. The personal allowance is lost if taxable income exceeds £125,000 (2019/20).

The dividend and personal savings allowance apply after the personal allowance and are calculated using UK, not Scottish, rates. Anything within these allowances still count towards the basic and/or higher rate tax bands.

UK excluding Scottish Earned or Pension Income

Rate Tax Band Income tax rate Dividend tax rate
Starting Rate for Savings £0 – £5,000 0% N/A
Basic rate £0 – £37,500 20% 7.5%
Higher Rate £37,501 – £150,000 40% 32.5%
Additional Rate £150,000+ 45% 38.1%

Higher rate threshold (standard personal allowance + basic rate band) is £50,000.

Non-savings income uses up the starting rate for savings.

Scotland only

Scottish tax bands only apply to earned or pension income. They do not apply to savings or dividend income.

—-

Rate Tax Band Income tax rate
Starter Rate Over £12,500 – £14,549 19%
Basic rate Over £14,549 – £24,944 20%
Intermediate Rate Over £24,944 – £43,430 21%
Higher Rate Over £43,430 – £150,000 41%
Additional Rate Above £150,000+ 46%

Higher rate threshold (Standard personal allowance + basic rate band) is £50,000.

Non-savings income uses up the starting rate for savings.

CGT is charged on any profits (the ‘gains’) you make when you sell (or transfer) shares and unit trusts or other assets such as a second home. If the total of any gains realised in the year, minus any losses, exceeds your annual allowance the excess is liable to CGT.

CGT has a different tax rate depending upon whether it applies to business assets or non-business assets.

2019/20 Capital gains tax rates (non-business eSRETssets)

Annual capital gains tax allowance: £12,000 2019/20

Capital gains Tax rate
Gains which when added to taxable income fall in the UK basic rate tax band 10%
Gains which when added to taxable income fall in the UK higher or UK additional rate tax band 20%

Capital gains on residential property which is not a main residence will be taxed at 18% and 28% instead of 10% and 20%.

Announced IHT rates until 2020/21

Value of estate Tax rate
£1 – £325,000 (known as IHT threshold or nil rate band) 0%
Over £325,000 40%
Tax year Residence nil rate band
2017/18 £100,000
2018/19 £125,000
2019/20 £150,000
2020/21 £175,000
Stamp duty reserve tax (SDRT)

0.5% rounded up to the nearest penny when you buy shares that settled via electronic paperless system.

Standard stamp duty

When you buy shares worth over £1,000 that settle via a paper system the tax charge is 0.5% rounded up to the nearest penny. There is no charge if the shares are worth less than £1,000.

Stamp duty land tax (SDLT) – residential

Charged when you buy residential land or property.

Purchase price or value Tax rate paid on portion of purchase price  Tax rate paid on second   and subsequent houses
Up to £125,000 0% 3%
£125,001 to £250,000 2% 5%
£250,001 to £925,000 5% 8%
£925,001 to £1,500,000 10% 13%
Over £1,500,000 12% 15%

Please note Stamp duty land tax (SDLT) is not charged in Scotland. A Land and Buildings Transaction tax (LBTT) will be applied instead. Please view here for more details.

State Pension age

Historically the State Pension age was 60 for women and 65 for men. This has changed.

By November 2018 the State Pension age for women will have increased to 65. By October 2020 it will have increased to 66 for both men and women.

The State Pension age is due to increase to 67 between 2026 and 2028 and to 68 between 2044 and 2046, however the government has announced that the increase towards 68 will be brought forward to include those born on or after 6 April 1970.

Basic State Pension rate

For those who reached State Pension age before 6 April 2016, the maximum in 2019/20 is £129.220 per week.

In addition, there may be entitlement to earnings related State Second Pension (S2P) formerly State Earnings Related Pension Scheme (SERPS).

You needed 30 qualifying years for a full basic State Pension. A qualifying year is one where either sufficient national insurance was paid or was deemed to have been paid.

New State Pension rate

For those who reached State Pension age on or after 6 April 2016, the maximum in 2019/20 is £168.60 per week.

This figure will be reduced for those who have contracted out of the State Second Pension (S2P), formerly State Earnings Related Pension Scheme (SERPS), before 6 April 2016.

35 qualifying years are needed to receive the full New State Pension. A qualifying year is one where either sufficient national insurance has been paid (on earnings above a lower limit of £6,136 for this tax year) or deemed to have been paid.

Transitional rules apply for those who accrued State Pension before 6 April 2016.

Tax relief on pension contributions

Tax status Tax relief 2017/18* Net cost of £1,000 gross contribution 2019/20
Non-taxpayer (including children) and Scottish Starter rate 20% £800
Scottish intermediate rate 21%* £790
Scottish higher rate 41%* £590
Scottish additional rate 46%* £540
Basic rate taxpayer 20% £800
Higher rate taxpayer 40%* £600
Additional rate taxpayer 45%* £550

* Any tax relief above basic rate is restricted to the amount of tax paid at that rate. This assumes no other taxable income.

Pension contribution limits

Relevant UK earnings (usually earnings from employment or self-employment) Maximum personal or employee contribution for tax relief
£0 – £3,600 £3,600
£3,601 and over 100% of earnings

Annual allowance: £40,000. A £4,000 money purchase annual allowance will apply for those who have flexibly accessed their pensions.

Tapered annual allowance: If your threshold income is over £110,000 then your annual allowance will be reduced by £1 for every £2 that your adjusted income is over £150,000; to a minimum annual allowance of £10,000.

Threshold income is, broadly, all taxable income plus salary sacrificed for pension contributions on or after 9 July 2015 minus personal or employee (not via salary sacrifice) pension contributions.

Adjusted income is, broadly, all taxable income plus employer pension contributions (including via salary sacrifice) plus some benefit accrual in defined benefit, e.g. final salary, pension schemes.

Lifetime allowance: £1,055,000. If the value of pension rights exceeds the lifetime allowance on death, at retirement or at age 75, the excess could be taxed at up to 55%.

Class 1 employed (2019/20)

Earnings per week Employee rate
£0 to £166 Nil
£166 to £962 12%
£962 and over 2%
 

Earnings per week

Employer rate
£0 to £166 Nil
£166 and over 13.8%

National Insurance applies to most earned income or benefits in kind. National Insurance rates may be different for certain employees, e.g. if employee is over the State Pension age. No National Insurance paid by employers up to £791/month for employees under 21 or apprentices under 25.

Self-employed and voluntary

 

Type of National Insurance contribution Tax rate 2019/20
Class 2 self-employed £3.00 per week
Class 2 small profits threshold £6,365 per annum
Class 3 voluntary £15.00 per week
Class 4 lower profits limit £8,632 per annum
Class 4 upper profits limit £50,000 per year
Class 4 rate between lower profits limit and upper profits limit 9%
Class 4 rate above upper profits limit 2%

Corporation tax rates

Corporation tax rates are set for each Financial Year. A Financial Year runs from 1 April to the following 31 March.

If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.

The Northern Ireland Executive has committed to setting the rate of corporation tax at 12.5% when the Northern Ireland Executive demonstrates its finances are on a sustainable footing.

Profits band (£) Year to 31.3.20 (%) Year to 31.3.19 (%)
All 19 19
Registered businesses charge Value Added Tax (VAT) on their sales. This is known as output VAT and the sales are referred to as outputs.

Similarly VAT is charged on most goods and services purchased by the business. This is known as input VAT.

There are three rates: standard which applies to most goods and services, reduced rate for some goods and services such as home energy and zero rate goods and services, for example, most food and children’s clothes.

Some supplies are exempt from VAT for example postage stamps, financial and insurance transactions.

A business is required to register for VAT if the value of taxable supplies exceeds the annual registration limit.

The government has frozen the VAT registration and deregistration limits for two years from 1 April 2018.

 

 

Rates

Standard: 20% (unchanged from 2017/18)

Reduced: 5% (unchanged from 2017/18)

Limits

Annual Registration Limit (1.4.19 to 31.3.20): £85,000 (unchanged from 2017/18)

Annual Deregistration Limit (1.4.19 to 31.3.20): £83,000 (unchanged from 2017/18)