Month: March 2017

Your Pension- Part 3

If you are self employed you can build up your pension contributions record to ensure you qualify for the full state pension of £155.65/ week (16/17 tax year) by paying class 2 NI contributions. Class 2 NI is currently £2.80/ week.

Your Pension – Part 2

The state pension is currently £155.65/ week but ONLY if you have completed a full 35 “qualifying” years of contribution through the National Insurance contributions that you pay. Each year that you are short of this number of Qualifying years your pension will be reduced by £4.45/ week. LeeP can help you plan a tax…

Your state Pension – part 1

The pension age this tax year is 65 for men and 63 for women. This will increase to 68 for both sexes. You can calculate what your state pension age will be on the SPA calculator on GOV.UK.

Planning for nursing homes & Inheritance tax planning

The average cost for a nursing home is now £41,000 a year. Funding is available from the local authority but only if the assets of the elderly person are less than £23,250. If their assets are between £23,250 and £14,350 they will have to be means tested. Some people choose to give their assets to…

LeeP Accountants Tip #27 – Review the business structure

Sole traders working from home should consider setting up a limited company to benefit from lower business rates. This would enable them to pay corporation tax, currently at 20% but which will drop to 17% by 2020, instead of income tax at 20% or 40% for higher rate taxpayers.

LeeP Accountant Tip#26 – Make use of the Annual Investment Allowance (AIA)

The AIA, set to £200,000 from April 2016, allows businesses to write off the costs of certain assets against profits in the year of purchase. This helps to bring quicker tax relief against capital expenditure. Most assets purchased for business use qualify including IT investments, office equipment and plant and machinery.