SeagraveFrench Accountants and Business Advisers Newsletter – 9 December 2024

Welcome to the latest edition of the SeagraveFrench Business Newsletter! Stay informed with the top updates impacting your business. Please contact us if you want to talk about how these updates affect your business. We are here to support you!

Salary vs. Dividends: What’s the Best Strategy for 2025/26?

Balancing salary and dividends remains crucial for tax-efficient profit extraction as a limited company. With new changes from the Autumn Budget, including adjustments to employer National Insurance rates and the Employment Allowance, finding the right mix is more complex than ever.

• Salary Benefits: Qualify for state benefits, tax-deductible for the company.
• Dividends Benefits: Avoid National Insurance contributions, simpler documentation.
• Combined Approach: Many find a modest salary paired with dividends offers the best balance.

Need help navigating the changes? Contact our tax team for personalised advice!

New Fair Payments Code Launched

The government’s Fair Payments Code introduces gold, silver, and bronze awards for businesses committed to paying invoices on time.

• Gold: 95% of invoices paid within 30 days.
• Silver: 95% within 60 days, including 30-day payments to small businesses.
• Bronze: 95% within 60 days.

Late payments can strain small businesses. Talk to us if you need strategies to improve payment turnaround.

Online Platform Reporting Changes from January 2025

Online platforms like eBay and Airbnb will report certain user sales and personal data to HMRC. While occasional sellers of unwanted items are unaffected, regular sellers or service providers earning over ￡1,000 may need to register for self-assessment.

Unsure about your tax obligations? We’re here to guide you through the requirements.

Disability Finance Code: Unlocking Opportunities for Disabled Entrepreneurs

Barclays, HSBC, Lloyds, and NatWest are part of a new initiative to improve financial access for disabled founders. This move could add ￡230 billion to the UK economy through innovation and inclusion.

Have a business idea? Let us help you access funding and make your vision a reality!

Railways Returning to Public Ownership

South Western Railway will become the first service to transfer into public ownership in May 2025 under the new Passenger Railway Services (Public Ownership) Act. Publicly operated services aim to improve reliability and reduce taxpayer costs.

Diamonds Might Be Forever: Revolutionary Battery Technology

The UKAEA unveiled a carbon-14 diamond battery with the potential to power devices for thousands of years. While not ready for consumer tech, its medical and extreme-environment applications are promising.

Prioritising Mental Health in the Workplace

ACAS research shows 9 in 10 employees want mental health prioritised at work. Employers should look for signs of distress and make reasonable adjustments as required under the Equality Act.

Need support in fostering workplace wellbeing? Contact us for advice on creating a healthier work environment.

Employing Seasonal Winter Staff

Temporary workers this holiday season still need to be assessed for pension enrolment based on age and earnings.

Need help with payroll or auto-enrolment? Our payroll team can assist.

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