Zenon Welcomes Teresa Cragen
Zenon are thrilled that Teresa Cragen has joined our team. Teresa brings with her a wealth of experience – please see our About Us page.

Good news! Corporation Tax rates set to fall
The rate at which small companies pay tax on their profits will fall to 20% from April 2011.  This had been set to rise under the previous Government’s proposals to 22%.
The main rate of corporation tax will fall to 27% from April 2011 and then by 1% each subsequent year so that by April 2014 the main rate will be 24%.

VAT rate to rise
The standard rate of VAT will rise to 20% from 4 January 2011.  There will also be a corresponding increase in the VAT flat rate percentages.  In addition, there  will be anti-forestalling legislation to prevent large scale abuse.
How will this affect your business?

Capital Allowances
Decrease in Annual Investment Allowance (AIA)
This allowance allows a business to claim the amount spent on most plant and machinery against their taxable profits reducing the amount of tax payable.  Currently the limit is £100,000 but from April 2012 this is reducing to £25,000.

Writing down allowance
From April 2012 these are decreasing from 20% to 18% for the main “pool” and from 10% to 8% for the “special rate pool”.
Call us and we can assist you with planning to maximise the value of these allowances, especially considering the interaction with the falling rates of corporation tax.

“Geography tax”
A National Insurance (NI) exemption was announced for new businesses in  certain regions.  This is a 3 year scheme and will exempt employers from NI of up to £5,000 per employee for up to 10 employees.  It will not apply in London, the South-East and East.

IR35
It has been announced that this is to be reviewed.  Watch this space.......

Tax Credits
There are a number of changes announced to the thresholds and rates for tax credits from April 2011.  This makes acting on tax credits in this tax year all the more imperative. 
Call us to arrange a meeting to review whether you are maximising your entitlement.

Entrepreneur’s Relief increases
For gains made after 22 June 2010 which qualify for Entrepreneur’s relief, the lifetime limit has increased to £5million. 
Where this applies the effective rate of Capital Gains tax is 10%. 
Call us to discuss how you can maximize your entitlement to this potentially very valuable relief.

Capital Gains Tax Increases
From 23 June 2010 a second rate of 28% for Capital Gains Tax (CGT) has been introduced.  Therefore we now have 3 rates, 10% where Entrepreneur’s relief is available, 18% where income and gains do not exceed the higher rate threshold (2010/11 £37,400) and 28% where income and gains exceed the higher rate threshold. If you are looking to dispose of assets where significant gains are likely you may wish to consider the planning options available.  Just call us.

Allowances from 2011
From 6 April 2011 the personal allowance is to increase to £7,475 for those under 65.  The basic rate limit will be reduced so that higher rate taxpayers will not benefit from the increase in personal allowance.
Come and talk to us about mitigating higher rates of tax.

Furnished Holiday letting update
If you have a holiday let give us a call to discuss the opportunities to minimize your overall tax position.  The proposed withdrawal of the generous tax treatment has been retracted and there is currently consultation on this.  We therefore have a further year of generous tax treatment. 

Income Tax rate hike
The new 50% rate of tax for taxable income above £150K is now with us as it became effective from 6 April 2010. Even more painful is the 60% marginal tax rate for taxable income above £100K. Talk to us about reviewing your remuneration packages to try to alleviate the full effect of these changes.

Pensions changes
The taxation of pensions has already changed for higher earners with the complex anti-forestalling legislation. The full tax consequences will be felt from 6 April 2011. Despite the anti-forestalling legislation, it is vital to plan the timing of your remuneration where possible to avoid even higher marginal rates of tax. Talk to us to find out how we can help you plan to minimize your tax exposure.

New PAYE tax penalty regime
New penalties are being charged for failure to submit monthly returns and payments on time from 6 April 2010. Benefit from our payroll processing service to ensure your returns are submitted on time. Consider how you need to plan your cashflow requirements to ensure you can make the payments on time.

Pre year-end tax planning
To ensure you are maximising the tax breaks available to your business, you need to plan the timing of expenditure ahead of your business year end. With a raft of changes from 1 April 2010, contact us to find out how you can plan to properly utilise the tax incentives which are in place.

Do you have what it takes to join our growing team?
We are always on the lookout for talented business advisors to join our specialist team. If you believe you have the skills and attributes to add value to us and our clients, please contact us.

Do it online
From 1 April 2010, most businesses will have to file their PAYE and VAT returns online and make electronic payments to HMRC. Contact us for further information and assistance.

Make your tax payment to the correct bank account
HMRC have changed banks (to a state controlled bank!) over recent months. Check their website to ensure your tax is paid to the valid account.