TaxAngles Newsletter- April 2021 Edition Summary

Personal and family companies – Optimal salary for 2021/22

In this edition of TaxAngles Newsletter, the focus is on the optimal salary for personal and family companies for the year 2021/22. The article discusses the strategy of paying a small salary and extracting profits as dividends, taking into consideration factors such as employment allowance, pension entitlement, and National Insurance thresholds.

Take advantage of the enhanced carry back of losses

Many businesses have faced losses due to the Covid-19 pandemic, and the newsletter highlights the temporary extension of the period for carrying back losses from one year to three years. This extended carry-back option applies to both unincorporated businesses and companies, providing a valuable tax repayment opportunity during challenging times.

Super-deduction for capital expenditure

To incentivize investment, enhanced capital allowances in the form of a super-deduction are available for qualifying expenditures on new assets between April 2021 and March 2023. The super-deduction allows companies to claim capital allowances of 130%, providing a significant tax relief and encouraging businesses to invest in assets that qualify for the deduction.

TaxAngles Newsletter- April 2021 Edition - Flipbook by Fleepit