OBK Tax

OBK Tax is the UK’s leading provider of specialist Accountancy and Tax recovery services to the self-employed and freelance marketplaces. OBK’s client base comprises of many nationally recognised businesses and we are widely acknowledged for our unique business proposition. Our services include- VAT Flat Rate Scheme administration, Construction Industry Scheme (CIS), Self-Assessment Tax Return Services, Standard (non-CIS) Self-Assessment Services, Limited Company Services. The OBK group has an annual turnover of in excess of £200 million, year-on-year growth and thousands of satisfied customers. We pride ourselves in providing a unique service, which enables our clients to focus on their core business activities with the confidence of knowing that we are as dedicated as they are.

[dearjobgods-blog]

"the difference between unemployment and self-employment is a state of mind.”

Michael Peters

[peatjariya]

An entrepreneur is a self-employed person working 16 hours a day to avoid working 8 hours a day for someone else.

YYCPR (via peatjariya)

[obktax-blog]

How to save thousands on the cost of a new boiler

Here’s a guide to the costs you should expect to pay and how to save.

Installing a new boiler is one of the largest single expenses homeowners and landlords ever have to face.

So we’ve taken a look at how much you should expect to pay for a new boiler, the installation and how to save on these costs.

How much does a new boiler cost?

Boiler prices vary based on brand, size and type (combi, system or conventional).Which? magazine has rated 370 boiler brands including Worcester Bosch, Viessman, Baxi and Vaillant and found prices can range from £600 to more than £2,000.But when looking for a new boiler a hefty price tag doesn’t necessarily mean you get a top boiler. So it’s important to read reviews and find the best boiler to fit your budget.If you don’t want to buy a boiler separately your installer may be able to quote you a price for the boiler plus installation.

How much does a boiler installation cost?

The cost of boiler installation can vary significantly depending on how much work is required, the parts, where you live and who you get to do the job.You can expect to pay from £540 for a straightforward replacement of a combi boiler in the same position as the old one up to £1,440 to install a new combi system in a new location, according to figures put together for Which? by the Association of Plumbing and Heating Contractors.However, it also warns you may also need to set aside money for a chemical flush (£200) or mechanical flush of your heating system (£510) and also moving pipes (£200-£300) on certain jobs.These prices don’t include the cost of the boiler discussed above, so as you can see the installation can cost more than the boiler itself. Combined the figures suggest cost of a new boiler and installation can set you back from £1,040 to £4,250.

How to save on the cost of a new boiler and installation

The best way to save money on the cost of a new boiler and the installation is to shop around.

When it comes to installation you might want to start with energy companies like British Gas for a quote but you should also look at independent traders too, who typically charge up to a third less.

When comparing prices also bear in mind any guarantees that are offered on the work but be wary of having to pay more for a warranty that may already be included by the manufacturer on the equipment.

Source: www.lovemoney.com

[obktax-blog]

The Construction Industry Scheme is changing!

The Construction Industry Scheme (CIS) is experiencing some significant changes. New legislation announced in the 2014 Autumn Statement is coming into effect in the next quarter. Accountants and bookkeepers should be aware of additional changes which are due to come into effect this year for any clients who are subcontractors or freelancers.

The CIS is a means of deducting tax from payments made to subcontractors in the UK construction industry in order to minimise tax avoidance. The current package of changes that was announced by the government in 2014, aims to reduce costs for businesses – and for HMRC – by simplifying the scheme’s processes. It’s also hoped that the new legislation will enable more businesses to gain gross payment status, whereby payments are made to subcontractors without making tax deductions.

Last year’s changes

A number of changes came into effect last year (2015). These included relaxing the requirements for joint ventures to gain gross payment status in some situations, as well as allowing earlier repayments to liquidators in case of insolvency.

The need for contractors to submit a nil return in months when no payments had been made was also removed – although contractors can still submit a nil return if they choose to do so. In a further change, contractors and their authorised agents are now able to appeal against late filing penalties using HMRC’s online Penalty Appeal Service.

Upcoming changes

More changes are pending this year and next. Accountants, bookkeepers and their clients need to be aware of the implications of these changes in order to remain compliant.

The following changes are proposed for April 2016:

Compulsory online filing. The online filing of CIS returns will become mandatory and contractors will no longer be able to submit returns by paper, other than in certain circumstances – for example, if an individual is unable to access a digital channel or objects to online filing on religious grounds. As well as submitting returns, contractors will also be able to amend and resubmit their returns online.

Simplifying the compliance test. Directors’ self-assessment obligations will no longer be taken into account when determining whether a company is eligible for gross payment status.

Reducing the threshold for the turnover test. When a company has multiple partners or directors, the threshold for determining gross payment status will be reduced from £200,000 to £100,000.

A further update is due next year. Currently contractors are able to verify whether subcontractors can be paid gross by telephone or online. However, the telephone option is due to be discontinued in April 2017, meaning that subcontractors will have to be verified online in most cases.

Following this year’s changes, it will still be possible to process CIS payments manually – however, it is important to note that this may take more time and effort than in the past. Where software solutions are in place, accountants should take steps to ensure that their software is compliant with the new legislation.

OBK Tax’s team of specialists offers a comprehensive CIS tax return service that includes self-assessment, accounts production and TaxWise cover.

Do not hesitate to contact us if you need any help!

[obktax-blog]

[phdstudents]

when my tax rebates come in

[obktax-blog]

visit our website and call us today for a free estimation on your tax return! https://www.obk-llp.com/ 

[taylorgoldsmiths]

Brits watch out - tax rebate scam

I just had a text purportedly from HMRC, offering me a tax rebate if I followed the link. It all looked totally legit until I realised they wanted all of my security information. 

The HMRC website says they never send texts about rebates, so don’t respond!

[obktax-blog]

100% Correct!

[obktax-blog]

17 ways successful people think differently about money

[obktax-blog]

Is HMRC revoking your right to expenses

HMRC has confirmed that if you’re a contractor who works through a recruitment agency, you are automatically going to be considered under Supervision, Direction or Control (SDC), or the right of these, for the purpose of the new legislation prohibiting tax relief on travel and subsistence expenses.

That means, where a contractor supplies their personal services through an umbrella or limited company, there will be a “presumption” that there is SDC, or the right of SDC, if the contractor is engaged through an employment agency and as such, your travel and subsistence expenses will not be eligible for tax relief.

This automatic opt-in to SDC all stems from a single and rather innocuous-sounding sentence on page 14 of the SDC consultation by HM Revenue & Customs, which states:

 “This test will be applied in a similar away to that currently used for agency workers in Section 44 (2) of ITEPA.”

Well, Section 44 (2) of ITEPA states that where a worker is engaged by or through an agency, there will be a presumption that there is Supervision, Direction, or Control (or the right of these) over the worker.

Consequently, if the SDC proposal on travel and subsistence goes through, without alteration, then, regardless of whether there is Supervision, Direction or Control in reality, such Supervision, Direction or Control will be presupposed once contractors secure their contract through a recruitment agency.

So all contractors that work through agencies will automatically be in the position where they can no longer claim travel and subsistence expenses, once the current proposal passes into law from 1st April 2016.

We also understand that only those contractors who work through umbrella companies but who are ‘direct-to’ client – without an agency – will still get relief on their expenses, provided they are not Supervised, Directed or Controlled  - or under the right of Supervision, Direction or Control.

It’s all a bit of a mouthful really, but the logic of HMRC is brilliant. If you follow it through, and the Revenue applies the SDC test to IR35 (as they are signalling in the IR35 discussion document) then, with everything being equal, any contractor working through an agency would automatically be inside IR35.

If you have any questions about the new HMRC changes, do not hesitate to contact our team on 01252 704 030.

OBK are a leading VAT and Tax rebate specialists with many years of tax expertise and thousands of happy customers.

[obktax-blog]

Tax Rates 2016-17

As announced in the budget, the personal tax allowance is being increased to £11,000 from 6th April 2016. This means that the first £11,000 of your income will be tax free. The new allowance is £400 more than the previous year and is expected to be increased to £11,500 in 2017-18.

This allowance will apply to everyone regardless of their age. The changes have been made in light of government’s pledge to support those on low and middle incomes.

Here is a tabular reflection of the new income tax rates from April 2016.

Income                   Income Tax Upto £11,000            NO TAX The next £32,000         20% The next £118,000       40% Above £150,000          45%

These allowances are expected to reduce income tax for 29.1m tax payers (24.3m basic tax payers and 4.8m higher tax payers) in 2016-17 and 29.6m in 2017-18 including low and middle income individuals, thereby improving incentives to enter employment and increasing disposable incomes.

The change in personal tax allowance will cost HMRC £418,000 to update their IT systems to reflect the tax code changes.

HMRC are also changing the way dividends are taxed – read all about it here.

If you have any questions about the new tax changes, do not hesitate to contact our team on 01252 704 030.

OBK are UK’s leading VAT and Tax rebate specialists with many years of tax expertise and thousands of happy customers.