Author Archives: shipshape

Incorporating buy-to-let businesses

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In April, there was a major change to the income tax rules for landlords.  Tax relief is now going to be restricted to basic rate only, with the changes phased in over four years.  Individual circumstances on the restriction could produce high effective tax rates. The restriction will not apply to companies, prompting landlords to question whether it might be… Read more »

Problems with New Childcare Service

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It has been widely reported that the MP Nicky Morgan, who is  chair of the Treasury Select Committee, has written to HMRC’s Chief Executive to take him to task over problems with the new Childcare Service. This appears to be in anticipation of consideration by the TSC. Parents are unable to access their digital services account, along with childcare providers;… Read more »

Making Tax Digital

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On 13th July 2017, the government announced a new timetable and changes to the implementation of Making Tax Digital which will now take effect in April 2019 and will only be mandatory for businesses over the VAT threshold. New timetable and focus on VAT Under the new timetable: only businesses with turnover above the VAT threshold (currently £85,000) must keep… Read more »

Truth about cloud security

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The cloud is much more secure than it seems, with 85% of businesses having a multi-cloud strategy trusting these services with their own and their clients most sensitive data. Understandably people are cautious about putting business’s and clients’ data on the internet, as essentially it is a publicly accessible network. Business-class cloud services are working around this limitation with encryption… Read more »

Taxable dividend and interest income below the threshold for a self assessment tax return – the process clarified

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The criteria for filing a self assessment tax return been updated and for 2016/17 a return is required where: your income from savings or investments was £10,000 or more before tax your income from share dividends was £10,000 or more before tax According to ICAEW, it begs the question about the process for those who have income from dividends and… Read more »

Top ten IR35 myths exposed

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Top ten IR35 myths exposed 1. IR35 applies when I’ve been on site for 2 years IR35 depends on how you work on a day-to-day basis, not how long you’ve been working at one place. It’s true that the longer you work somewhere the more likely you are to be deemed ‘part and parcel’ of the firm, and HMRC will of… Read more »

Insurance with Kingsbridge

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Ship Shape highly recommend Kingsbridge’s specialist contractor insurance.  They have years of experience and have developed the most comprehensive policy we have seen. It includes all of the following features in one simple product. Professional Indemnity Professional indemnity insurance cover on an any one claim basis. This particular cover will protect contractors against claims for negligence (making a mistake, for… Read more »

Making Tax Digital ‘to cost £2,800 per business’

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An independent analysis of how much reporting to the taxman will cost the average business has come back with a figure three times greater than the government’s. Commissioned by a small business group, the Centre for Economics and Business Research found that the quarterly reporting regime will cost £2,770 per business and not the estimated £280 by the Government. Although… Read more »

Tax raid postponed as ministers rush through finance bill

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The snap general election has forced ministers to ditch controversial plan to slash the tax-free dividend allowance to ensure safe passage of bill, according to the Guardian. A planned tax raid affecting more than two million people is one of several measures that have been dropped by the government as the general election draws near. The decision to hold a… Read more »

New IR35 rules: what contractors need to know

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What will the reforms to IR35 legislation entail? The in Autumn Statement 2016 the chancellor confirmed that in the public sector only, IR35 status be determined by the client and not the contractor. If a client decides IR35 does apply, the contractor business will be taxed at source, through the Real Time Information (RTI) system, as if they were an… Read more »