SJD Insider News - September 2017

As always, there’s a lot going on in the world of contracting. We’re keeping you up to date with all of the latest developments in the industry. 

Paper Tax Deadline Approaching

The deadline to submit the paper tax return for the 2016/17 financial year is 31st October 2017. To report income, claim tax reliefs and make any outstanding repayments, you will need to complete the SA100 form. 

You may also need to complete additional information, including: 

•employees or company directors (SA102)

•self-employment (SA103S or SA103F)

•business partnerships (SA104S or SA104F)

•property income (SA105)

•foreign income or gains (SA106)

•capital gains (SA109)

What do I need?

In order to complete your paper tax return, you will need:

•forms P60, P45 and P11D

•business records

•profit and loss account

•bank statements

•personal pension contributions certificates

•gift aid donations

Calculating your bill

Once you’ve submitted your paper tax return by the deadline, HMRC will calculate the amount of tax you need to pay and a payment on account for the 2017/18 tax year.

If you owe less than £3,000 for the 2016/17 tax year, HMRC can collect the outstanding tax from your wages or pension from 6th April via your PAYE tax code, but only if your return is submitted by the deadline. 

Buy to Let Regulations Fuel Rent Rises

A new study by Your Move has revealed that landlords are increasing rent due to the introduction of buy-to-let tax regulations.

Rental prices on approximately 2,000 properties were analysed and found that the average rent in England and Wales rose by 3.1% in the past year to £874. The South West, however, saw a fall of 2.2% to an average £667 per month. 

Wales saw the biggest rise in rent, with prices up 4.3% to £595. Other areas to experience average monthly rental increases of more than 3% in the past 12 months include:

•The South East – up 3.6% to £884

•The North West – up 3.1% to £630

The rent rises could be due to the recent tax changes affecting landlords such as the mortgage interest relief and 3% stamp duty tax. Tax changes have also impacted the supply of properties on the market, causing a fall in housing and causing rent prices to increase. 

Sole Traders Exposed to Cash Crises

Insurer LV= surveyed 9,495 self-employed workers and discovered that 1 in 3 could not survive for more than 3 months if they lost their income. Almost half of self-employed people struggle to save any money each month, leaving them exposed to financial problems. 

The results also revealed that monthly bills eat up the majority of wages for 62% of self-employed and sole traders are more likely to be hit by unexpected costs (33%) compared to the national average (28%). 28% of sole traders were concerned about not being about to work due to an accident and 29% were worried about becoming ill.

Finance Bill 2017-2019 Roundup

The government has published the Finance Bill 2017-19, containing a number of changes that will affect both savings and investors. Many of the changes in the Bill were expected in the April 2017 Budget but were withdrawn due to the June snap general election.

Most of the changes have now been instated, such as:

•the reduction of the money purchase annual allowance from £100,00 to £4,000

•abolishing permanent non-dom status to those living in the UK for years pay on tax on the same basis as UK based residents

Further measures

Other measures were confirmed in the Bill, such as the annual dividend allowance being reduced from £5,000 to £2,000 from April 2018.

The pensions advice allowance will enable savers to access £500 from their pension savings tax-free for regulated financial advice. This can be done up to 3 times before the age of 55.

Businesses with turnover below the VAT registration threshold will no longer have to keep digital records until at least April 2020. Regulations on digital record keeping for VAT purposes will not take effect before 1st April 2019.

Stay informed

For all of the latest updates in the industry, visit SJD’s news centre.

You can also download our full insider roundup below:

 

AttachmentSize
SJD Insider News - September 2017280.97 KB

Call Back Request

Image CAPTCHA
Enter the characters shown in the image.

Speak to a
friendly expert
01442 275789

Monday to Thursday (8am to 8pm)

Friday (8am to 7pm)

Saturday (10am to 4pm)

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new business team on 01442 275789 or email: newbusiness@sjdaccountancy.com. Our new business team is open Monday to Thursday (8am to 8pm), Friday (8am to 7pm) and Saturday (10am to 4pm)

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.