Accounting for Businesses and Individuals

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Discover a Helpful Tax Tip

Tax tips

  1. A common issue often forgotten is the transfer of unused marriage allowance e.g. Jim, the client, earns from his business £18,000 per annum, so his Personal Allowance is utilised. However, his wife works part time, for £6,000 per annum. She can earn £12,500 per annum tax free, therefore has unused allowances of £6,500. She can transfer £1,250 of the £6,500 to her husband.
  2. For directors, with a large director loan credit, why not charge your company interest (a tax deductible expense). The interest for a SR director is tax free if under £1000 e.g. Jim has a director loan outstanding of £15,000. He charges his company 6% interest i.e. £900. This will be tax free income.

Accord Accountants 15/4/2019

Tax allowances

Income Tax

  • Personal Allowance (Tax free)

    £12,500

  • Transferable Marriage allowance

    £1,250

  • Rent a room

    £7,500

  • Casual trading income

    £1,000

  • Interest received

    £1,000

Tax Free mileage allowance

  • Up to 10,000 miles p.a.

    45p

  • Over 10,000 miles

    25p

  • Motor cycles

    24p

  • Bicycles

    20p

Capital Gains Tax

  • Individual exemption

    £12,000

  • Tax rate (SR taxpayer)

    10%

  • Entrepreneurs Relief

    10%

Corporation Tax

  • Taxable profits

    19%

VAT

  • Registration threshold

    £85,000 (Turnover)

  • De registration limit

    £83,000 (Turnover)

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