2017 Spring Budget Highlights

09 March 2017 •

Here is a review of the headline announcements made during the Chancellor’s 2017 Budget together with a reminder of the measures coming into force from April 2017, April 2018 and beyond.

Measures introduced from April 2017

Property taxation

As previously announced a restriction on the tax-deductibility of mortgage interest payments for private landlords will be introduced from April 2017 and is to be phased in over four tax years up to 2020/21.

Savings

The ISA limit is to increase to £20,000 from April 2017.  In addition, the new Lifetime ISA is to be introduced for adults under 40 at 6 April 2017. Individuals will be able to save up to £4,000 per annum and receive a 25% bonus from the Government up to the age of 50.

Loss Relief for Companies

Trade losses generated on or after 1 April 2017 which are carried forward can be relieved more flexibly. This is by setting the losses against total taxable profits (TTP) rather than simply trade profits.

Companies and groups with profits in excess of £5million will only be able to relieve losses up to 50% of profits. This measure applies to all losses carried forward, regardless of when they arose.

Domicile and Inheritance Tax

From 6 April 2017, if a non-UK domiciled individual has been UK resident for 15 of the previous 20 tax years they will be deemed to be UK domiciled for tax purposes. In addition, individuals that were born in the UK but have acquired a domicile of choice elsewhere will also be deemed UK domiciled for all taxes whilst they reside the in the UK.

Increased Cash Basis Threshold

The turnover threshold for small unincorporated businesses to use the cash basis of accounting has been increased from £83,000 to £150,000. From 6 April 2017, the cash basis of accounting will also be available for unincorporated property businesses.

VAT Threshold

From 1 April 2017, the VAT registration threshold will increase to £85,000 from £83,000 and the deregistration threshold will rise from £81,000 to £83,000.

Measures Introduced from April 2018

Dividend Allowance

In 2016 George Osborne abolished the notional tax credit for dividends in favour of a £5,000 dividend allowance within which dividends are taxed at 0%. From 1 April 2018, there will be a reduction in the dividend allowance from £5,000 to £2,000.

Class 4 NIC Increase

An increase to Class 4 National Insurance Contributions for self-employed individuals will see the current main rate rise from 9% to 10% from 6 April 2018 with a further increase from 10% to 11% planned from 6 April 2019.

In the future

Making Tax Digital (MTD) Deferral

From 6 April 2018, unincorporated businesses and landlords will be required to change the way they interact with HMRC. This includes using software and apps to record business transactions digitally and provide quarterly updates of their tax affairs. However, unincorporated business and landlords with turnover below the VAT registration threshold of £85,000 will not be required to comply with MTD until 6 April 2019.

If you would like to explore what the Spring Budget could mean for you and your business, please call 020 7731 6163 to talk to one of our tax team, you can also download our 2017/2018 tax card

Celebrating 35 years of Warrener Stewart!

07 February 2017 • Warrener Stewart News

For Warrener Stewart, the year 1982 heralded the start of their successful chartered accountancy practice. In a year that was filled with space travel, the collapse of Laker Airways and, most notably, the Falklands War, chartered accountant Peter Warrener started Warrener & Co in South East London. His intention was to develop an accountancy practice which would provide a highly professional, yet affordable service to the local business community, a need he had identified as sadly lacking.

Now, 35 years on and having moved West to Fulham, the business has grown and matured, much in keeping with the original vision, yet has remained true to its founding principles of providing excellent standards of professional and personal service to meet the needs and budgets of private clients and their businesses. The Firm covers all aspects of accountancy and tax services and gives intelligent business advice. It can count 28 staff at present and has served more than 4,000 clients over the last three and a half decades.

Reminiscing, joint managing director Nick Morgan recounts, “Thirty-five years ago, on 2nd February Peter Warrener started the business. In those intervening years, a lot of water has gone under the bridge, yet there are still a good number of us around who can remember the early years, contributing more than 200 years combined service. That’s an awful lot of tax returns! Everyone should be very proud of this significant achievement.”

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The current directors of Warrener Stewart: (l-r): Jon Last, Colin Edney, Gary Chapman, Nick Morgan and Damian Talbot.

Wishing you a Merry Christmas

22 December 2016 •

The offices will be closed during the Christmas week until 3rd January 2017.

We hope you have a prosperous New Year.

This year instead of sending cards we have made a donation to St Mungo's Broadway, who work to tackle the causes of homelessness.

Warrener Stewart deliver a presentation on property tax developments to estate agency client

12 December 2016 •

There have been many recent changes to property tax law; to help leading luxury real estate agent, Engel & Völkers’ staff appreciate how these changes could affect their clients, Warrener Stewart recently visited their offices on the Brompton Road.

The presentation, “The Evolution of Property Tax Planning” was delivered by Warrener Stewart’s tax director, Damian Talbot, and tax consultant, Felicity Butler. Two of Engel & Völkers’ management team attended Warrener Stewart’s event earlier in September and were keen to share this knowledge with their staff.

“We have had some very positive feedback from the delegates who came to listen to our presentation at Chelsea Football Stadium,” commented Damian Talbot. “Some of our clients, like Engel & Völkers, suggested holding joint marketing events involving their staff and/or clients. At Warrener Stewart, we are keen to try to think differently from traditional tax advisory firms and welcome any opportunity to organise joint marketing events with our clients.”

Engel & Völkers, established in 1977 in Hamburg, is the world leader in luxury real estate with 700 branded offices in 37 countries with more than 3,800 employees. Following his presentation to their staff, Damian said, “I was very impressed by the consultants and members of the management team I spoke to who had a real sense of commitment to their clients and how the tax legislation affects them.”

Anyone who is interested in hosting a joint marketing event or would like to arrange a presentation for their staff on “The Evolution of Property Tax Planning” should contact Warrener Stewart’s tax team on 020 7731 6163. 

2016 Autumn Statement Highlights

23 November 2016 •

Today’s Autumn Statement introduced very few new measures to the tax code. Here is a review of the headline announcements - and a reminder of the measures coming in from April 2017 and April 2018 are also highlighted below.

Measures introduced from April 2017

Income tax

The annual personal allowance is to increase to £11,500 from April 2017.

Employment taxation

From April 2017 salary sacrifice schemes will no longer be available.  Existing arrangements will be protected until April 2018 with some particular schemes being protected until April 2021.

These changes do not affect salary sacrifice schemes in place for Pensions, Childcare, Cycle to Work and ultra-low emission cars.

The National Insurance thresholds for Employers and Employees will be aligned from April 2017 so that Class 1 NICs become due on earnings in excess of £157pw.

Employee Shareholder Status (“ESS”) arrangements entered into after 1 December 2016 will not receive the favourable tax advantages previously available.

Property taxation

As previously announced a restriction on the tax-deductibility of mortgage interest payments for private landlords will be introduced from April 2017 and is to be phased in over four tax years up to 2020/21.

Savings

The ISA limit is to increase to £20,000 from April 2017.  In addition, the new Lifetime ISA is to be introduced for adults under 40 at 6 April 2017. Individuals will be able to save up to £4,000 per annum and receive a 25% bonus from the Government up to the age of 50.

Corporation Tax 

The corporation tax rate is set to fall to 19% from April 2017 onwards. In addition, new measures will come into effect from April 2017 onwards applicable to large corporations (i.e. those with profits in excess of £5M per year), restricting the deductibility of losses from earlier years and also the deductibility of interest costs that are allowable. 

Value Added Tax

A new 16.5% rate will be introduced to the VAT flat rate scheme from 1 April 2017 for those businesses with limited costs.

Non-UK Domiciliaries

As previously announced, from April 2017 long term UK residents who are not domiciled in the UK will assume a deemed UK domicile for Inheritance Tax purposes if they are resident in the UK for 15 of the last 20 years.

Inheritance Tax will also be charged on non-UK domiciled individuals who hold UK residential property indirectly through an offshore structure, such as a company or Trust.

Proposed measures from April 2018

Employment

It is proposed that from April 2018, Employers National Insurance contributions will be payable on termination payments where the amount exceeds £30,000.

National Insurance

From 2018, Class 2 NIC for self-employed will be abolished. There will be a consultation regarding voluntary Class 3 contributions and Class 4 NIC, which are paid by the self-employed, to consider how to build entitlement to the State Pension and other contributory benefits which used to be covered by the payment of Class 2 contributions.
 

If you would like to explore what the Autumn Statement could mean for you and your business, please call 020 7731 6163 to talk to one of our tax team. 

A Distinct Advantage for Warrener Stewart’s tax advisors

18 November 2016 •

Fulham based accountancy firm Warrener Stewart’s tax team now has three more qualified tax technicians following the success of their graduate tax trainees; Felicity Butler, Freddie Hollom and Ryan O’Connor in passing their Association of Taxation Technicians (ATT) exams.

Following the latest round of ATT exams taken in May, Felicity Butler, passed both her final two papers with distinction. Out of the 1,878 candidates sitting the exams only 3% achieved a distinction for exceptional performance. Felicity has now passed all the qualifications needed to become a member of the ATT.

Having completed their final tax assessments in September 2016 and fulfilling the time criteria, fellow colleagues and tax technicians, Freddie Hollom and Ryan O’Connor, have also qualified  as members of the ATT.

“We are very pleased that our tax students have successfully passed their exams,” commented Damian Talbot, head of the tax department at Warrener Stewart, adding “and we are delighted that Felicity excelled in these final papers achieving a well-earned distinction, congratulations to them all!”

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“For the past 20 years Warrener Stewart has consistently given good advice... going above and beyond their remit.”
Theo Brehony - London Preparatory School Limited