Following our article last week, there have been further developments on the VAT flat rate changes which will come into place from 1st April 2017. HMRC have updated their guidance on what purchases constitute goods when calculating whether you are a ‘Limited cost business’.
Monthly Archives: March 2017
- Tax-Free Childcare will soon be available to working parents
Tax-Free Childcare will provide up to £2,000 a year in childcare support for each child under 12.
Parents will be able to receive up to £4,000 for disabled children up to the age of 17.
Parents of younger children will be able to apply for the scheme first, with all eligible parents able to access the scheme by the end of the year.
Working parents in England will also be able to apply for an additional 15 hours of free childcare for three and four year olds, bringing the total to 30 hours a week.
Continue reading Top 6 Points to take away from the Spring Budget
The state pension is clearly a worthwhile thing to have, particularly for the self-employed who will receive a pension through the new ‘flat rate’ pension. However, there have been numerous changes to the qualification criteria over recent years and now may be a good time to check your entitlement.
One thing which is worth bearing in mind is that it is the individual’s obligation to keep track of their own entitlement and ensure that it is correct, although most people do not appreciate that. Keeping track of this over a working life is difficult but rectifying problems with the state pension at the point of retirement can be even more difficult, so a quick check of your position once every four or five years is time well spent.
Yes, to a separate/dedicated bank account
The simplest answer is no it does not have to be a ‘business’ bank account, that will depend on the individual bank’s criteria for bank accounts. However, the business should be operated from a separate/dedicated bank account from your personal finances. At the beginning of a new business venture it may be tempting to leave this aspect until a point when the level of financial transactions taking place would justify a separate bank account, this might not be the best of choices. As your business grows and expands, it’s extremely important to separate your business finances from your personal, day-to-day living. The beginning of a business can be a time where all your business transactions can be expenses. Ideally, you would open a separate bank account and pay in any funding received either via grants, loans or your investment. This clearly shows the capital being input into the company and then the expenses will also be clearly identified in the outgoings of the account.