Starting rate of tax for savings income 2015-16

From 6 April 2015 the starting rate of tax for savings income (such as bank or building society interest) will be reduced from 10% to 0% per cent and the maximum amount of taxable savings income that can be eligible for this starting rate will be increased from £2,880 to £5,000

more details:

http://www.ion.icaew.com/TaxFaculty/post/Starting-rate-of-tax-for-savings-income

 

Increase in threshold for Small Companies Regime

What is it ?

 

A company in the UK qualifies as a Small Company if it fullfills two of the following three criterias:

 

Turnover – not more than £6.5m

Balance sheet total – not more than £3.26 m

Employee – not more than 50

 

UK Government has increased these limits to comply with EU Accounting Directive

via a new regulation

 

Turnover – not more than £10.2m

Balance sheet total – not more than £5.1 m

Employee – remain same at 50.

 

From when the rules change ?

Rules change for accounting period begining on or after 1 Jan 2016.

 

Why it is important ?

 

Small companies donot have to get their books audited.

 

This will reduce the administrative burden on lot of small companies and allow them to focus on their business.

Laws for websites in UK

Recently one of my clients asked me about rules and regulations for a website in the UK.

 

I thought it was easy just be truthful about what product and services you sell.

 

But client asked me to check this out for him and to my surprise there are a host of rules and regulations governing e-commerce business.

 

Being an accountant I am no expert on this matter but main items that i found I thought should share with others:

 

1- As customers will be buying service via a website, rules in the link below apply:

It gives detailed information about what customers have to be informed before and after an order.

https://www.gov.uk/online-and-distance-selling-for-businesses/overview

2- Law on Computer Cookies

In simple terms, we must ask consent before installing cookies on their computers.

The link also gives an example and detailed information about this cookie consent.

http://ec.europa.eu/ipg/basics/legal/cookies/index_en.htm

 

3- Advertising rules:

These rules give information about telephone and direct marketing.

https://www.gov.uk/marketing-advertising-law/overview

Main important rules I see among them is telephone marketing and display of price.

 

4 – Data protection:

Organisation which handle personal data need to register , fee is £35 per year.

ico.org.uk

 

I think if a start-ups starts complying with all these rules on day one, it may make the whole project unviable. But every organisation should knows its responsibilities and must have a time bound compliance program as the business grows.

Employment Allowance

Two changes are being made in Employment Allowance from 6th April 2016.

 

Good news:

Its being increased from £2,000 to £3,000

 

Bad news :

If there is only one employee in the company and that employee is also a director, this employer will not get this allowance.

 

I also wish to bring to attention a must read publication for all HMRC agents doing payroll for their clients,

its called Employer Bulletin (Click here)