Accountancy Blog

Lifetime ISA’s

Incorporating the Lifetime ISA into your savings strategy.

The past few years have seen several innovations in the savings account market. Gone are the days when savers only had cash and stocks and shares ISAs to choose from. Nowadays you can open specialist accounts designed to help you save for your first home and for your retirement. These innovations have helped to position the humble individual savings account as a powerful and flexible means of both saving your money and earning a return on your deposits.

In April, the Lifetime ISA became the newest entry to the market. In this guide we look at how you can use Lifetime ISAs.

The government introduced the Lifetime ISA with the intention of helping young people to either save for their first home or build up their retirement savings. As such, Lifetime ISAs are only available to people aged between 18 and 39 years old. You cannot open a Lifetime ISA once you turn 40. More…

Capital gains tax

A guide to capital gains tax and the reliefs available for 2017/18.

When you buy an item with the intention of selling it for a profit, that transaction is treated as a trade and you should pay income tax on the profit you make on the sale.

When you acquire an asset to use or hold for a period, the profit you make when you dispose of that item is treated as a capital gain, which is subject to capital gains tax (CGT).The difference between trading (income tax) and owning an item as an investment (CGT) can change depending on how you intend to use the item. For example, if you buy a house to let then sell it for a profit, you will pay CGT on the gain. However, if you buy a house with the intention of doing it up to improve its value, then sell at a profit, HMRC will view your activity as a trade and charge you income tax, and possibly national insurance, on the profit you make. More…

Delayed retirement beyond 65

The number of employees who think they will work beyond the age of 65 is at a record high, according to research by Canada Life Group.

Out of 1,000 workers surveyed, 73% are expecting to work past the age of 65 – up from 67% in 2016.

37% who intend to work beyond 65 said they could be older than 70 before they retire, while 10% expect to be at least 85 years old when they fully retire.

Almost all younger workers agree they will be working past the age of 65, with 84% of 25 to 34-year-old employees resigned to that prospect. More…

Rising costs and offsetting them

More than half of businesses are planning to offset rising prices, according to a study by ICAEW.

53% of firms have seen input prices increase over the past year but less than half are willing to absorb the costs.

Businesses cited the following reasons for rising prices:

  • rise in raw materials (35%)
  • cost of services (29%)
  • other reasons, such as the price of labour and changes to exchange rates (30%).


Employment law rights and Brexit

Employers are in support of the current employment law rights as negotiations to leave the European Union continue.

The CIPD asked 500 employers about the 28 areas of employment law and found the majority thought all areas were necessary.

Legislation deemed important included:

  • unfair dismissal laws (93%)
  • the national minimum wage (87%)
  • parental rights at work (82%)
  • agency worker laws (75%)
  • working time regulations (74%).


Expenses and benefits deadlines

Expenses and benefits not payrolled for the 2016/17 tax year will need to be reported to HMRC by 6 July 2017.

Employers can report them by completing specific forms which are available to download on the HMRC website.

There are 2 forms to complete – P11D and P11D(b). More…