UK accounts and tax

10% tax rate on dividends have been abolished from 01 Apr 2016. New rules make it little more complicated for a business to calculate their taxes. As per HMRC, first £5,000 of dividends that you get in the tax year. Tax band Tax rate on dividends over £5,000 Basic rate (and non-taxpayers) 7.5% Higher rate 32.5% Additional rate 38.1% Income thresholds are: - Personal Allowance: £11,000 - Basic Rate Limit: £32,000 - Higher Rate Threshold: £43,000   So in case of low earnings, no need to bother for example 11k salary and 5k dividend will bring zero tax liability.  For basic rate, if non dividend income is 20k and dividend income is 10k. Then only 5k dividend income will be taxed @ 7.5%. What if dividend income becomes 16k. Now first 5k no taxes, next 7k @ 7.5% and the remaining 4k @ 32.5% . If non dividend income is 30k and dividend income is 20k now 11k of  non dividend income is tax free, 19k will taxed @ 7.5%, 5k dividend is tax...

From 1 July 2016, Confirmation Statements will replace Annual Returns (AR01). Companies House is introducing a new form (CS01) containing the declaration that records held by the Registrar are correct on the confirmation date. The first 'confirmation date' will fall a year after the made-up date of the last annual return, although firms can bring this forward if they wish. Due Date is within 14 days of the confirmation date - a tighter deadline than the 28 day grace period for annual returns. If your company was recently incorporated your next confirmation date will be 12 months after the date of incorporation. The purpose of the new form is to save the time to fill the repetitive information which needs to be provided every year on annual return but majority of accountants see no time saving because annual return take 5-10 minutes in filling. The good news is fees for the submission is reduce from £15 to £12 if submission made by Companies House portal and from £13 to £10 to t...

Wang Jing is self made Chinese businessman. He is Chairman and CEO of Beijing Xinwei, a Chinese telecoms company. Among his major interests is the HKND Group that manages the Nicaraguan Canal and Development Project to build the Nicaragua canal .  In June 2015, he had $10.2 billions was one of the first 200 richest people in the world. In November 2015, his wealth reduced to $1.1 billions due to sharp slide in Chinese stock market. The major factors of failure is too much rely on local market for investment. Local markets are considered safe by majority of millionaires because its easy access to information and many contacts in the local market. Currency risks, geopolitical risks, and credit risks make foreign investment more unattractive for investors. But despite of all drawbacks, it is more wise to make investment in different market after evaluating the risk and reward scenarios of each country. Like U.S. is known worldwide for its safe-haven investments, like Treasury...

Where the married couple has rental income from property, they can reduce the taxes by doing some good tax planning. If the property is owned jointly, both can claim rental income 50:50 in their tax returns regardless of ownership ratio (which can be different from 50:50). So it means rental income sharing can be 50:50 if ownership ratio is 40:60 or rental income sharing can be 30:70 if the ownership ratio is 30:70 etc. What is not possible is rental income sharing of 10:90 and ownership ratio is 60:40. But in case of disposal of property capital gains or losses will be shared in the ownership ratio. No inheritance tax in case of gift of property between spouses if married couple have same domicile (Uk or Non UK).  Form 17 is required to be filled to HMRC if rental income is shared by married couple within 60 days. If the property is owned by single spouse or unmarried couple then Form 17 requirement does not apply. Lets see an example, A couple own a property which they let o...

Walt Disney has opened $5.5 billion theme park in Shanghai,China. The craze of mickey mouse begins with mouse ears are the most selling product in stores. This is Walt Disney's 5th resort others are in Florida, Hong Kong, Japan & Europe. 50 million visitors are expected per year. 57% share owns by local government and 43% by Walt Disney. Disney's share of profit will come from merchandise, food sales and hotel income.