USEFUL INFORMATION

TAX RATES AND BANDS - 2016/2017

the standard personal tax allowance is £11,000.00

below shows the tax rates you pay if you have a standard personal allowance of £11,000.00.

no tax on earnings up to £11,000.00 .

basic rate tax allowance 20% - on earnings from 11001.00 to 43,000.00

Higher Rate: 40%- on earnings £43,001 to 150,000.

45% on earnings Over £150000.00

you do not get a personal allowance on taxable income over £122,000.00.

Basic Tax Code: 1100L

Increase in National Minimum Wage.

The Government has announced increases in NMW rates which will come into effect on 1 October 2016:

The rate for 25 year olds and over is £7.20 per hour.
The rate for 21-24 year olds is 6.95 per hour.
The rate for 18-20year olds is £5.55 per hour.
the rate for under 18's is £4.00 per hour.
The apprentice rate is £3.40per hour.

From April 2016 the national living wage will be £7.20 per hour for workers aged 25 and over the minimum wage will

still apply for workers aged 24 and under

Online VAT Returns and Electronic Payments

From 1 April 2012 all VAT Registered Businesses will be required to submit their VAT Returns online and pay any VAT electronically.

V.A.T. Registration Threshold

You must register for V.A.T. if your V.A.T. taxable turnover for the previous 12 months is more than £83,000.00.

You must also register for V.A.T. if either of the following applies:

You think your V.A.T. threshold may go over the limit in the next 30 days.
You take over a V.A.T-registered business as a going concern.

For other V.A.T. Schemes i.e the flat rate scheme please contact ourselves.

deregistration threshold is less than £81,000.00.

Real Time Information

In April 2013 HMRC are introducing a new way of reporting PAYE information, known as Real Time Information (RTI).

'Real Time Information' means that employers, or their agents, will tell HMRC about employees pay on or before the time they are paid to the employees as part of the Payroll Process.

Audited Accounts

IF YOU MEET THE CRITERIA BELOW YOU DO NOT NEED AN ACCOUNTANT TO DO YOUR ACCOUNTS

The turnover threshold which currently exempts most companies and Limited Liability (LLPS) from a Statutory Audit is £6.5 Million.

Small and Medium-sized Company Thresholds from April 2008

A Small Company will normally be one that meets two or more of the following criteria for the current and previous year:

Turnover not more than £6.5 million.
Balance sheet total not more than £3.26 million. (i.e. Assets)
Not more than 50 employees.

A Medium-Sized Companywill be one that meets two or more of the following criteria:

Turnover not more than £22.8 million.
Balance Sheet total not more than £11.4 million.
Not more than 250 employees.

Phone: 01702 339 963

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