Sparkling night at Stockport Business Awards

Stockport Business Awards 2017 took place at Stockport Town Hall last night and 400 people turned out to celebrate the achievements of the town’s best businesses. The awards were set up by Clarke Nicklin Chartered Accountants back in 2012 and have grown year on year. 12 awards were given out in total including two new…

Pension scheme withdrawals

Pension scheme rules are complicated, and they are constantly changing. It is essential that you take advice from a qualified independent financial adviser before drawing funds from your pension scheme, or using those funds to invest in business assets. Before you sign any deals, check whether your financial adviser is registered with the Financial Conduct…

Inheritance tax nil rate band

After your death your relatives will have to pay inheritance tax (IHT) at 40%, if the net value of your assets exceeds £325,000. A discounted rate of 36% applies if you leave at least 10% of your net estate to charity. Where you leave the value of your home to a direct descendant, an extra…

VAT partial exemption

A business that has some income which is exempt from VAT, but also makes sales that are subject to VAT, is referred to as ‘partly exempt’. Input VAT on purchases can only be recovered if it relates to ‘VATable’ sales made by the business, i.e., those which carry VAT at 20%, 5% or 0%. If…

VAT and second-hand goods

If your business deals in second-hand goods, it can use a concession that significantly reduces your VAT payments compared to normal VAT accounting. Using this concession you account for the VAT on its profit margin on the second-hand goods, rather than on the full sales value. The record-keeping requirements for using this concession are very…

Simple assessments

When your state pension is larger than your personal allowance, you will have a small amount of tax to pay for the year. To collect this tax HMRC need to ask you to complete a tax return, and ‘self-assess’ the tax due. This appears to be an unnecessary exercise, as HMRC should already know the…

VAT and contracts with three parties

VAT can often get very complicated when there are three parties involved in a transaction. To clarify who must account for what VAT, it is essential to identify who is the principal, who is the agent and who is the customer. Identifying the customer is normally the easy part, as that is the person who…

Tax changes that didn’t happen

The snap General Election curtailed the Parliamentary time available to pass new laws. As a result, a number of tax changes which were expected to come into effect on 1 April or 6 April 2017 did not become law, including: New allowances Two new allowances of £1,000 each were to apply from 6 April 2017….

Making Tax Digital

Making Tax Digital (MTD) is a project to transform the UK tax system so that accounting data flows into HMRC digitally and at least quarterly. The General Election created a temporary pause in MTD, but it is clear that the project will continue as HMRC has invested too much in MTD to scrap it. Individuals…

Buying off-plan is risky

When you purchase a new property off-plan, you may put down a deposit to reserve the property before it is finished, or even started. The contract to purchase the property is normally not completed until the property is finished, and at that time the balance of the purchase price must be paid. If you can’t…

A bright idea for Clarke Nicklin

Clarke Nicklin are not your ordinary accountants, aside from being award winning business and financial advisors, they are also well known for putting on a range of business events in the Stockport borough. Most notably, they set up Stockport Business Awards back in 2012 and still run the hugely successful event now, alongside their Stockport…

Tax schemes that trap contractors

Individuals working on fixed-rate contracts are eager to reduce their costs, including tax deductions. They may be tempted to take part in tax schemes which promise to cut their tax bills. These are two tax schemes that are sold to contractors, which in reality save no tax at all. Annuities The worker agrees to receive…