Call us on
0845 834 0269
Head Office
0203 318 3024
info@123contracting.co.uk
The 123 Blog -
Up-to-date tax info and 123 news.
-
Tax Allowances - end of the tax year, have you used all of your allowances?
By The 123 Contracting Team, 06-Feb-2012 19:07:00
Read more...We're quickly approaching the end of the 2011-12 tax year - 5 April 2012 - if you have not used up your personal tax allowances by this date you will loose the benefit that they provide.
During the 2011-12 tax year you can receive £7,475 of income tax free. This could be in the form of a salary, bank interest or sole trader profits.
On top of this you can receive £37,000 worth of dividends and still pay no personal tax.
If all your sources of income for the 2011-12 tax year total less than £44,475 then you may have some tax allowance left unutilised.
Now would be the time to get in touch with us to see if you have profits in your company that can be released tax free as a dividend.
Don't put this off - once we enter the 2012-13 tax year on 6 April 2012, the opportunity will have passed.
Contact us now to find out more.
0 comments
-
Self-Assessment tax returns - deadline is fast approaching
By The 123 Contracting Team, 18-Nov-2011 11:16:00
Read more...The deadline to file your personal Self-Assessment tax return is 31 January 2012. This might feel like a long time into the future but it really isn't!
You need to collect together all of your financial information for the year 6 April 2010 to 5 April 2011 and use it to fill in our online Personal Tax form. We can then prepare your tax return and computations and let you know what your tax liability is and how much you will have to pay on 31 January 2012. If you are lucky enough to have overpaid tax then you will be due a rebate, the sooner we can file your return, the sooner you will receive your rebate from HMRC.
If you are not a 123 client then get in touch asap so we can get you signed up to prepare your return in time for the 31 January deadline - don't leave it to the last minute as you risk receiving fines and penalties from HMRC.
As always if you have any questions at all then feel free to call us on 0845 834 0269 or drop us an email at info@123contracting.co.uk
0 comments
-
123 Contracting, Runner Up in the Wandsworth Green Business Awards 2011
By The 123 Contracting Team, 13-Oct-2011 06:28:00
Read more...When we started 123 Contracting we wanted to run a business that was ethical and environmentally focused. We've managed to be quite successful by creating a paperless office, sourcing our energy supplies from renewable energy sources and cycling rather than driving to the great majority of our meetings. Simple things that we believe nearly all business can implement.
Our green strategy has now been recognised by the London bough of Wandsworth backed by the European Regional Development Fund who on the 22 September awarded 123 Contracting the runner up award for Best Individual Green Champion 2011. We picked up the award from the Mayor of Wandsworth and would like to thank the council for a fantastic evening.
0 comments
-
Reduce your tax bill and boost your pension with an employer contribution
By The 123 Contracting Team, 11-Aug-2011 14:00:00
Read more...Working through a limited company is almost always the most tax efficient option for Contractors; however you can reduce both personal and corporate taxation even further by using your company to invest towards an income in retirement.
Pension planning represents a very tax efficient means of transferring money from contract to personal hands as the vast majority of Contractors enjoy effectively no restrictions on the level of contribution that their company can make this year. Personal contributions are capped at 100% of what may be a very low salary however and so investing via your personal bank account could severely restrict the tax benefits that you can achieve.
If you choose to contribute directly from your Ltd Company you simply invest the gross pension contribution and 123 Contracting can write this off as an expense against your company's corporation tax. The fact that you avoid the personal taxes that you would otherwise have been levied on salary and dividends therefore makes contributing via your company an arguably more straightforward option.
If you are caught by IR35 then a company contribution is a no brainer compared to a personal contribution due to the fact that you will otherwise be paying NI on virtually all of your salary whereas any company pension contribution is allowable even over and above the 5% expenses.
To find out more about the tax breaks available using pension contributions or to discuss your existing arrangements to ensure they are appropriate call 123 Contracting on 0845 834 0269 or email contractorfinancials@123contracting.co.uk
123 Contracting would like to thank ContractorFinancials for the above article.
ContractorFinancials is a member of the 123 Extra programme - more information about their specialist services can be found here.
0 comments
-
Tax Return fines
By The 123 Contracting Team, 06-May-2011 14:00:00
Read more...Many freelancers will have heard of the £100.00 penalty for late filing of their tax return; however this penalty has always been capped so if you filed your return late but had a tax liability of only £50.00 then your penalty could only be £50.00. HMRC are removing this cap so all late returns will receive an automatic £100.00 penalty.
They have also stated that for prolonged late returns the fines will increase in the following way:
A daily penalty of £10.00 for returns which are over three months late – this can run for a maximum of 90 days.
An additional £300.00 – or five per cent of the tax due if this is higher – for returns over six months late.
A further £300.00 – or a further five per cent of the tax due if this is higher – for returns over twelve months late.
A higher penalty of 70% will be charged if a return has not been submitted for more than twelve months and information has been deliberately withheld which HMRC requires to properly assess the tax owed.
This penalty increases to 100 per cent of your tax liability if HMRC deems that information has been deliberately concealed from them.
The Self-Assessment deadlines are 31 October 2011 for all paper returns and the 31 January 2012 for all online returns.
However do not leave it till the last minute to send your income information through to us - we can file your return today and you still won't have to pay your tax liability until 31 January 2012 - no reason to put it off.
End.
0 comments
The 123 Blog - keep up-to-date with UK tax updates and 123 news.
Web feed
The 123 Way
What is included as standard for a fixed fee of £65.00 + vat per month:
Full Contracting health check - is your business performing as best it could - we'll ensure it is.
If you're new to freelance contracting, we'll ensure you start trading in the right way.
Then you can sit back and relax, your ongoing HMRC & Companies House compliance will be taken care of.
The 123 Way - simple & stress-free.
123 Income Illustrator
The 123 Income Illustrator shows you what you can expect to take home from a given contract.
It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.
123 Referral
We run a simple referral programme where for every client you refer to The 123 Way we will give you £120.00
For more information check out the link below:
You are viewing the text version of this site.
To view the full version please install the Adobe Flash Player and ensure your web browser has JavaScript enabled.
Need help? check the requirements page.
