Blog Posts: April 2012

As an investor you could be excused for being somewhat confused by the fluctuations in the markets over recent years and the apparent mismatch between the depressing news headlines and the buoyancy of the FTSE100 for example. The FTSE 100 index has risen from 5000 to nearly 6000 and back to 5750 in a matter of months. Back in September/October 2011 when the FTSE 100 was touching 5000 points some days, the news headlines certainly weren’t predicting this kind of improvement: "I don....

The recent Budget saw a concerted attack on tax avoidance, especially the practices used by the super-wealthy. And when you look at some of the headline figures, it’s hardly surprising the Government saw this as a ripe target. Many were dismayed when Gordon Brown abolished the 10% tax band for the lowest earners. However, with a little creativity, 10% tax still exists – only this time for the UK’s highest earners. HMRC found that 10% is the average rate of income tax paid by th....

The 2012 Budget saw George Osborne present a shiny new present for small businesses: cash-based accounting. From April 2013, very small businesses with a turnover up to £77,000 (the 2013 VAT threshold) will be able to submit their accounts on the basis of cash passing through the business. The principle behind this move is one which drives many Government policies – simplification. Cash-based accounting removes a great deal of complexity from the business of preparing tax returns.....

The Budget brought excellent news for businesses involved in product innovation: an improved tax credit system will be applied to research and development. For many companies, growth in years ahead is dependent on research and development now. Tomorrow’s cutting edge products have to be devised today, but in the current economic climate investing the considerable sums of money needed for R&D is a hard and even risky decision. It can be many years before a return is made on such investm....