FEATURE: TAX & ACCOUNTING


The Human Face of Accounting


We are a family­run accountancy practice based in Tavistock. We pride ourselves on our reputation of submitting accounts early and recognising that every customer has a unique set of circumstances demanding a bespoke, tailored approach to their needs.


Along with our high quality, low cost accountancy services, we have recently introduced something new: a free in­house scheme whereby we recommend our customer’s businesses to our other customers who may benefit from what they have to offer.


How to cope in taxing times for your business


By Mark Tibbert, Partner at Thomas Westcott


It is always worth considering whether you have made full use of all available allowances and consider any changes you want to implement from April 2018.


What should I be considering? 1. Have I made full use of the £5,000 dividend 0% band? It is worth noting this is due to decrease to £2,000 from April 2018, increasing the tax liability for those with dividend income in excess of this amount.


2. For married couples or civil partners where one spouse earns below the personal allowance (£11,500) and the other is not a higher rate tax payer, have you made an election to transfer 10% of your personal allowance?


3. For those with investments have you made full use of your personal ISA allowance, currently £20,000 per annum?


4. Everyone has a capital gains tax annual allowance of £11,300. If you have an investment portfolio has full use been made of this allowance?


5. For landlords the past few years have seen a number of changes, perhaps the biggest impact is the restriction of interest relief that came into effect in April 2017. Since April 2017, interest is no longer a wholly allowable expense;


instead tax relief is given as a 20% tax credit of the interest paid. Currently 25% of the interest expense is used for the 20% tax credit,


with 75% being deducted against the gross rental income. Whereas from April 2018 this increases to 50%. For a higher rate taxpayer with £10,000 of interest, this represents an increased tax charge of £500. Given the changes in relief it is worth reviewing borrowings and operating structure.


6. Finally, have you made full use of your pension allowances, although the reliefs available have become more complex over the last few years, in general everyone could invest up to £40,000 into a pension, with unused allowances carried forward up to three years.


For further information contact Mark Tibbert at www.thomaswestcott.co.uk


Wheelers Chartered Accountants, Business Advisers & Tax Consultants


6 Providence Court Pynes Hill Exeter EX2 5JL Tel: 01392 360660


www.wheelers2020.co.uk March/April 2018 Chamber Profile 15


This is what we can do for you: • Company Accounts, CT600 and Confirmation Statements • Partnership Accounts and Tax Return • Sole Trader Accounts and Tax Return • Director/Personal Self­Assessment • Tax Advice • Recommend you to other clients


T: 01822 611407 E: Harry@harrywalkeraccountancy.co.uk W: www.harrywalkeraccountancy.co.uk


Harry Walker Accountancy, 65 West Street, Tavistock, Devon Pl19 8AJ. @harrywalkeraccountancy


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