Planning Tips for 05 April 2014 – Business

Capital Allowances

The Annual Investment Allowance is currently £250,000. This does not however mean that all expenditure below £250,000 will be entitled to 100% allowance.
Consideration should be made to maximising the use of this allowance.

NIC’s Employment Allowance

From 6 April 2014 eligible employers are entitled to a reduction of up to £2,000 in their Class 1 NIC’s. This allowance can be claimed through your own payroll software, by using HMRC’s basic PAYE tools online or by using a paper EPS.
If you run your own or a husband and wife company you may wish to look at the benefits this could give you by reconsidering the level of salary paid to yourself and your wife from 6 April 2014.

P11D Benefits in Kind – Overdrawn Loan Accounts

Thinking ahead now could avoid problems being identified during P11D completion when it is too late to rectify them. For example, where you have an overdrawn director’s loan account, reducing the balance before 5 April might give a lower beneficial interest charge if the standard averaging method of calculation is to be used.
For employee/director loans, if the loan is kept below £5,000 continuously throughout the year no interest charge will arise. This is currently proposed to increase to £10,000 from 6 April 2014.

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