Samantha Stokes’ Post

Thanks Keir! As I'm not a working man, I think I'll take the day off today... I'm not convinced of the definition of simply someone who owns shares as "not a working man". I'm the 100% shareholder of the company my father and I set up 27 years ago from nothing. To a million plus pound turnover company, with many employees. The company already pays 6 figures per annum in paye, corporation tax and vat. I also pay a substantial amount of tax annually. In the early days I was working 18 hour days - being a software developer, salesman, trainer and systems consultant. All roles that today I employ people to do for me. But, even today, I'm often still working at 8pm when everyone else has finished But, yet, according to Keir's definition - I'm not a working man. Is Keir right? Did he intend to include working entrepreneurs in his definition? Should I be looking to emigrate? 🤔 (I can actually in theory do much of my work remotely!) I don't mind paying tax - either personally or as a business, but it's essential that taxation is fair and that people like myself - who generate employment and wealth for the economy - aren't disincentivised to do so. I'm looking forward to the next budget less and less - living in the hope that much of the talk is just that... Or am I completely wrong? 🤔 #tax #noworkforne #funtimes #dodgypoliticalopinion #budget2024 #budget https://lnkd.in/eUqRX3n2

When Should You Hire an Accountant Instead of Self-Filing Taxes? Answers: https://lnkd.in/gmNDAT2e #AccountingHelp #TaxTime #FinancialAdvice Have you ever wondered when it’s time to bring in an accountant instead of tackling your tax return solo? 🤔 Maybe you've recently: Acquired property 🏡 Opened a new business 💼 Started earning a higher salary 💰 These big life changes can create a lot of financial complexities that make self-lodging your return a bit tricky. Let’s break it down! Why these moments matter: Acquiring property: Owning a home or investment property can mean dealing with deductions, depreciation, or even rental income. All these factors can complicate your tax situation, making it easy to overlook potential savings. Opening a business: Starting your own venture? Congrats! But be aware that business income, expenses, and deductions can become overwhelming fast. An accountant can help you navigate these waters and ensure you’re compliant while maximizing your deductions. Reaching a higher salary: Earning more is fantastic! However, it often comes with additional tax implications, such as a different tax bracket. An accountant can help you st...

It's coming to the end of my financial year end so my company bought me a present! I purchased some vouchers and then used the vouchers to buy this lovely step machine as I wanted something different to do as part of my exercise routine. Are you a limited company? What do you know about trivial benefits? Do you utilise your trivial benefits each year? Trivial benefits are tax deductible expenses which everyone on your payroll is entitled to, including yourself. You don’t have to pay tax on a benefit for your employee if all of the following apply: ▪️it cost you £50 or less to provide ▪️it isn’t cash or a cash voucher ▪️it isn’t a reward for their work or performance ▪️it isn’t in the terms of their contract This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know. You can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a ‘close’ company. Your bookkeeper can help you to manage this so you don't exceed the allowance and that you claim what you're eligible for each year against your tax bill. What will your company treat you to this year?

Small Business Owners - Should you pay yourself in salary or dividends? " I miss the days of a blanket “dividends is always cheaper” approach" was one the comments in an accountancy group I am part of. It used to be easy! pretty much regardless of circumstances, if you were a director/owner of a small business, you set you salary at the tax free allowance and paid the rest as dividends. Before 2016, it made an incredible difference in your overall tax rate. The difference became a lot less after that, but there was still a benefit. There are 3 taxes and 5 elements to the calculation: National Insurance (Employee and Employer), Corporation Tax, and Income Tax (on salary and dividends) So with the increases to corporation tax rates for small businesses last year and the reduction in employee national insurance this and next year, the calculation has changed significantly, and the best outcome for the tax year 2024-25 really depends on the level of profits of the company, whether the employer allowance is available to the business, and level of income for the individual business owner. So the answer is... it really depends on your circumstances. We've written to our clients today so they have an opportunity to request a tailored calculation before the start of the tax year. Of course if you have no idea of your planned level of profits and drawings for the year ahead, it makes that calculation a little difficult, so having some form of budget is really useful 💡 Now don't go and get cross with your accountants if they haven't contacted you - If you've picked them based on their ability to file your accounts and tax return (just) on time for the cheapest price, they're busy doing just that😊 #taxiscomplicated #officeoftaxsimplificationisabolished #businessowners

Most Tax-efficient Director's Salary and Dividends for 2024-25 As a limited company director in the UK, the best way to pay you is by taking a low director's salary and adding regular dividend payments. This is because allowances and tax thresholds change at the start of every tax year. That's why checking your earnings yearly is beneficial to ensure you pay your taxes efficiently. This blog will elaborate on the best director's salary and dividend format for the tax year 2024-25, from 6 April 2024 to 5 April 2025. But first, let's clarify the national insurance (NI), income, and dividend tax you need to pay on your personal income based on your earnings in the year. Learn more 👇 https://lnkd.in/d3bHXs_y

How much has your company made this year? I want you to think about it. You don't have to tell me (unless you want to). If your mind immediately shifted to how much you've collected, how much you spend on payroll, or how much is in the bank.... you are not answering the correct question. And you coiffed be headed for trouble. Those other numners are all important but when I ask how much you've made this year, I'm talking PROFIT (revenue - expenses). Profit, of course, is the number we pay tax on. If you owed more than $20K last year, it's important we keep an eye on this profit. We are halfway through the year and they time is NOW to start working on your tax strategy. If you owed $20K or more in tax last year, I can help. Just comment "HELP" below and I'll reach out😊 Pic below taken while on the St. Thomas sky ride to remind you to keep your tax plan on track even though it cam be scary.

Most Tax-efficient Director's Salary and Dividends for 2024-25 As a limited company director in the UK, the best way to pay you is by taking a low director's salary and adding regular dividend payments. This is because allowances and tax thresholds change at the start of every tax year. That's why checking your earnings yearly is beneficial to ensure you pay your taxes efficiently. This blog will elaborate on the best director's salary and dividend format for the tax year 2024-25, from 6 April 2024 to 5 April 2025. But first, let's clarify the national insurance (NI), income, and dividend tax you need to pay on your personal income based on your earnings in the year. Learn more 👇 https://lnkd.in/d3bHXs_y

I’ve helped clients save tens of thousands in taxes just by switching to an S-corp. It’s not a one-size-fits-all solution, but for the right business, it can be a game changer. The best part? Now is the perfect time to make the switch. If you’ve been thinking about it, let me connect you with a CPA who can help you understand how much you can save. Switching before the start of the year makes it easy on the administrative end of things. Plus, you can gear up for a more profitable year! Switching might be right for you if you... ✔️ Are netting at least $75K per year in profits ✔️ You have the capacity to run payroll on a monthly basis ✔️ You have consistent cash flow and can pay yourself a standard and reasonable salary monthly ✔️ You have the capacity and means to file two tax returns annually (one personal, one business) Let me know if you would like to be connected with a CPA who can help you decide! #scorp #taxtips #smallbusinessfinance

🎯 Budget Summary for Salaried People 🚨 Honestly, there is no major change apart from few of the upsets below: ⏳ Long Term Capital Gains - 12.5% from 10% earlier (No indexation benefits anymore) 🐇 Short Term Capital Gains - 20% from 15% earlier 💰 Security Transaction Tax (for FnO increased by 100% compared to the previous tax) 0️⃣ Standard Deduction increased a little with no significant change in the tax slabs (for New Regime) 📈 Employer's contribution to NPS increased to 14% from 10% earlier (for New Regime) Yes, it is disappointing! I won't comment on anything political but my advise would be to take advice of some financial advisor before planning your investments and make sure if you sell your financial assets, proper provisions are made so that you are aware of all the benefits possible. I have been filing my ITR with Prosperr.io for the last 2 years and they have always given me the best advice on investments so that I can save tax in the most optimal way. 🙌 Hop onto a FREE tax assessment call with a dedicated CA if you want to hear their strategies once before you trust them. If you feel like using one of their services, this link will help you get 15% discount - https://lnkd.in/dXGEC9yy ✅ A FREE call will only enlighten you to make better tax decisions. So don't miss the FREE call at any cost. 🚫

What is the tax efficient salary for THIS tax year 💷 (ending 5th April 25) When we talk to our clients who's income comes from an owner managed business (and generally speaking have no other income), they will typically take a combination of salary and dividends- these are key numbers to consider: 1. The go to tax efficient salary is £12,570 - but for a sole director you will have some employer national insurance payable 2. If you want the stress free no admin tax efficient salary- £9,100 is the figure. You will have no payments due to HMRC 3. When your income closes in on £98k we recommend talking to an accountant - depending on the corporation tax rates payable you may be better off taking all your remuneration as salary There are lots of other implications of switching including impact on cashflow, varying corporation tax rates and the dreaded £100k tax trap. That's why we suggest speaking to someone to plan your remuneration. And the exciting thing is from April 2025 this all changes again 😃 💛💙 Hope this helps you- this is video 2 of 24 so plenty more to check out covering accounts, tax, business, social media and more- please follow Gravitate Accounting and myself to see all the tips 💙💛