Just 8% of eligible couples are taking advantage of this tax break

It was one of the Conservative’s flagship tax policies and could be worth over £200 to any married couples that are eligible. But an official report has found that just 8 per cent of qualifying couples are claiming the marriage tax break.
The marriage tax allowance gives a married person the ability to transfer £1,060 of their tax-free personal allowance to a spouse or civil partner. If they made use of the full allowance, it means that a couple would receive an extra £212 each year in take home pay.
A report from the Office for Budget Responsibility found that of the 4.2 million people that are eligible for the tax break, only 504,000 have taken advantage of it.

Cloud Accountant are Expanding

Cloud Accountant are delighted to announce that we have made a successful appointment for the position of our own in-house Insolvency Practitioner. The new Corporate Rescue and Personal Insolvency Department will launch 18th April 2016.

Dividend Tax Planning

A new Dividend Tax is coming in from April 2016 so now is the time to effectively plan whether maximising proposed dividends in March could save you money.
Tax Credits are being abolished and a new effective rate of 7.5% will be payable on all dividends over £5,000. Currently basic rate tax payers pay zero effective rate tax on dividends.
Higher rate tax payers will see the effective rate rise from 25% to 32.5% and additional rate tax payers from 30.6% to 38.1%.

Chancellor George Osborne delivered his fourth Budget statement in the last 12 months on Wednesday and there were some important announcements for contractors and small business owners.
We have summarised the most important changes below.
Increase in the tax-free allowances
The government will increase the tax-free personal allowance threshold from £11,000 to £11,500. The higher rate threshold will also increase from £43,000 to £45,000. Both changes will take effect from April 2017. This is a positive move for basic rate taxpayers who will be taking home an extra £56 each year. The government believes that 1.3 million lower earners will not be taxed at all.

Xero TaxTouch

In the US Xero have launched, TaxTouch, a tax app designed to help contractors & freelancers stay on top of their accounts and to help them remove the tax burden.
Unfortunately if you search the UK apple store the app is not currently available in the UK. Being specialist Contractor Accountants we will keep our eye open for its UK launch.
TaxTouch appears to be a lighter version of the full Xero app and hence is available at a lower monthly cost.

Xero partners up with Google for more complete small business software package

Cloud accountancy provider Xero has unveiled a new partnership with Google and fused some of the search engine giant’s most popular apps directly into its accountancy software package.
The software update, which is now available worldwide, represents a shift towards a more complete business software package. It will give small business users more control over their customer relationships and allow for easier collaboration between contacts.