Pre-letting expenses – capital or revenue?

Pre-letting expenses – capital or revenue? Guidance on whether repairs are a capital or revenue pre-letting expense.   For tax purposes profits from UK land or property are treated as arising from a business. The broad scheme is that rental business profits are computed using the same principles as for trades (ITTOIA 2005, s272). Expenses are allowable if they are incurred ‘wholly and exclusively’ for the rental business.   If a property is let at less than the fu...
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Rental Accounts – Wear and Tear Allowances

Wear and tear allowance If the property is let furnished, the landlord is able to claim a wear and tear allowance. This is 10% of the ‘net’ rent and covers plant and machinery that a landlord would normally provide in a furnished accommodation, such as furniture, fridges, carpets and curtains. ‘Net’ rent is the total rent for the year, less any expenses paid by the landlord that would normally be borne by the tenant, for example utility bills.   Changes to wear and tear allowance ...
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5 Reasons you need an accountant

AGA Accountants 5 Reasons to have an accountant A good accountant and advise you on legitimate tax saving advice. And also tax efficient strategies for profit extraction. Accountants can advise you on the best way to keep tabs on the health of your business Accountants can advise you on the profitability of your business and where you could need to save more money. Compute and file yearly tax returns. Accountants help you get rid of the financial headache of paperwork and maint...
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Dividend Allowance

Dividend Allowance Question: When is an allowance not an allowance? Answer: When it is the dividend allowance. The taxation of dividends changed significantly from 6 April 2016. Gone is the 10% tax credit and the need to gross up to find the taxable amount and in its place a new dividend allowance and new rates of tax. What is the allowance? The dividend allowance is set at £5,000 for 2016/17. It is available to everyone, regardless of their marginal rate of tax, and means that th...
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Accounting services.

AGA Accountants provide accounts preparation services for : LLPs Partnerships Sole traders Limited companies We also provide monthly payroll services in an all inclusive package. Cloud bookkeeping and VAT services using XERO are also available, as part of a remote FD service. We provide tax compliance services for Self assessment / Income tax Corporation tax Capital gains tax advice Payroll VAT AGA accountants are conveniently based accountants in harrow wi...
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Advisory fuel rates change

Advisory fuel rates change 1 DEC 16 Advisory fuel rates for company cars have updated as of 1 December 2016. The changes will apply when an employer reimburses employees for business travel in their company car and when employees are required to repay the cost of fuel used for private travel. The new rates apply from 1 December 2016. The previous rates can be used for up to 1 month after the new rates apply. Engine size Petrol - amount per mile LPG - amount per mile 1400c...
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NEW MATCHMAKING SERVICE FOR SMALL BUSINESSES LOOKING FOR FINANCE LAUNCHED

NEW MATCHMAKING SERVICE FOR SMALL BUSINESSES LOOKING FOR FINANCE LAUNCHED 1 November 2016 Small businesses struggling to access finance from big banks will be matched with alternative finance options, thanks to new government scheme, supported by the British Business Bank. From today nine of the UK’s biggest banks will pass on the details of small businesses they have rejected for finance to three finance platforms – Funding Xchange, Business Finance Compared and Funding Options. These...
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Accounting for Associates and Locums

Accounting for associates We offer full advice and tailored service to associates and locums who work in the healthcare sector. Being experienced in this sector we have an intimate understanding of the nature of the work involved and expectations of the practitioner them self. Changes on the horizon Doctors, Surgeons and Senior Management are now self employed, and many also have businesses outside of the NHS, this complicates their financial records when submitting separate tax returns and c...
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Purchasing equipment

Acquiring plant and machinery and equipment for your business. HP Finance You will incur monthly interest charges on the outstanding credit you are given You can own the equipment at the end of the lease and may be required to make a nominal or Balloon payment at the end of the lease term. You will get 100% tax relief on the initial purchase value ( in the year of purchase) and on the interest charge you incur on finance. Equipment leasing Quite a few of my dental clients prefer t...
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Changes in Dividend tax – 2016

Dividend Tax changes. From 6 April 2016 tax rates applied to dividend income will change significantly. Essentially for nearly everyone they will have to pay more tax overall IF they take a dividend from their company. However it still has to be emphasized that the corporate structure still offers benefits in profit extraction tax efficiently. Summary of changes. The effect of the change is that any Dividend over £5,000 will now be taxed The legislation changes effectively mean that f...
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