A quick guide to Income Tax

Income tax is paid by the majority of people who earn money from business activities in the UK, whether that is as a sole trader, partner or director of a limited company, or deducted directly from employed earnings and forwarded to HMRC. It is your obligation to make sure you are registered with HMRC for income tax purposes. This can be done via the self-assessment process, declaring the establishment of your business partnership, registering a limited company with Companies House or ensuring that your employer has the correct information about you to enable them to make arrangements to pay your income tax via PAYE.

Paying income tax is usually straightforward, especially when you or your employer use compatible accounting software to track your income, expenses and tax obligations. You are liable to pay tax on any profits or cash that you take from a business above your personal allowance (see below), and you will also need to pay National Insurance Contributions on self-employment profits in order to become eligible for benefits such as the State Pension.

In certain circumstances, you can choose to pay yourself a mix of salary and dividends from shares owned in a company – the latter would be taxed at a lower rate, which would increase your take-home pay, but would not be deductible for corporation tax purposes, thus costing the business more money in the longer-term. An accountant will be able to advise you on the best option for your individual case.

Check your rate

Income tax rates vary according to how much you earn in a year and every individual is entitled to a personal allowance, or level of earnings that is not taxed. Money earned above this level is then subject to income tax obligations, set at increasing increments of tax owed. For the 2018/19 tax year, these rates and allowances have been set as follows:

  • Personal allowance (up to £11,850) – no tax to pay
  • Basic rate (£11,851 to £46,350) – 20% tax rate
  • Higher rate (£46351 to £150,000) – 40% tax rate
  • Additional rate (over £150,001) – 45% tax rate

These rates can be subject to change and alteration, especially following UK Government Budget speeches or during times of emergency or major financial flux, so keep an eye on the financial news for updates and statements regularly.

Paying your income tax bill

The method by which you should settle your income tax bill will depend on the type of work you do, and your employment status. If you are employed by an employer, they will usually sort this out for you, deducting your income tax before you receive your salary via the PAYE system.

If you are self-employed, are a business partner or director of a limited company, you will need to register for self-assessment tax and file your returns yourself, or via an accountant or tax specialist. Failing to pay your income tax, or submitting erroneous records can result in serious repercussions, including fines and being take to court, so it is well worth engaging an expert or investing in professional accounting software to help you submit accurate figures if you are at all unsure.

Finance News

Things That you Can Pawn if you Need Some Fast Cash

In the event you suddenly need an amount of cash, rather than selling a valuable asset, you can visit your local pawn shop, where you can deposit certain goods that can be used a security for a short-term loan. While some pawn shops will lend money on computers and other electrical appliances, the majority will accept any of the following as security for a loan.

  1. Gold Jewellery – If you have gold jewellery, regardless of its age and condition, your local pawn shop in Sydney would estimate its value and lend you a fixed amount based on that evaluation. It might be a very valuable heirloom, or even old gold jewellery that you never wear, if it is made from gold, the pawn shop will accept it.
  2. Diamonds – Whether loose stones or as part of a jewellery item, a pawn shop will appraise the value of any diamond and would be prepared to lend a specific amount based on their assessment of the diamond’s value.
  3. Luxury Watches – Well-known luxury watch brands such as, Rolex, Cartier, Omega, Breitling, Tag Heuer and many more. Of course, the pawn shop experienced staff would need to closely examine the time piece before offering an amount that can be borrowed using the watch as security.
  4. Gold and Silver Coins and Ingots – Any amount of gold or silver that is in coin or ingot format can be used as security for temporary loan. Make sure that you already know the weight and purity of the precious metal prior to visiting the pawn shop, where the details will be confirmed in front of you. If, for example, you have a considerable collection of gold coins and have an urgent need for some cash, rather than selling them, you can pawn them and have them returned when you repay the loan at a later date.
  5. Luxury Bags – Brand name bags and purses are also acceptable at a pawn shop, with names such as Louis Vuitton, Gucci, Chanel and Christian Dior all accepted. The pawn shop staff would carry out a close inspection of the bag, then make an offer on how much you can borrow.

How Does a Pawn Shop Operate?

It really is quite a simple, straightforward process; the pawn shop values the items you wish to pawn, and should you agree to this, they will pay you cash on the spot. The pawn shop will inform you of their monthly interest rates, which might be as low as 2 or 3%, and whenever you are ready to repay the loan, give the pawn shop 24 hours’ notice and you can visit the shop, pay the money and receive your goods. It really is as simple as that!

Finance News

3 Reasons Why Your Business Would Benefit From An Accountant.

If you are self-employed, then it is up to you to create profits and ensure that you have a job to go to every day. Your family relies on you to pay the bills and so any time when you are not working or thinking about your business, is time wasted. You really don’t have the time or the resources to be doing your own accounts and this should be left to the competent person who has gone to university and trained in this field for a number of years.

All business owners need to get themselves an accountant to take care of the books so that they can concentrate on doing what they do best, making money. There are a few local accountants in Woking and there are quite a few benefits for having your own accountant looking out for you and your business.

  1. Completing all the necessary paperwork and submitting it to the right department is time consuming and stressful. Leave it to your accountant to do and it will be done right and completed correctly.
  2. A good accountant understands about your tax liability and they understand the ways in which to reduce this for you legally. Having the right accountant will actually save you money.
  3. Accounts have to be submitted on time and completed in full. If you try to do them yourself and you are late or they are not correct, you will get a fine. Your accountant will ensure all is done in a timely manner and correctly.

If you haven’t got one already, find yourself an accountant and then spend your time growing your business.

Finance News

The Benefits of Hiring a Local Accountant for a Small Business

Running your own business, especially a start-up can be challenging. You quickly have to get to grips with all kinds of rules and regulations, if you don’t meet with certain government guidelines on time, you could end up in trouble with the law. If you’ve done a quick Google search using keywords such as “local accountants near me Leatherhead” you’ll find several good firms close to home. These organisations are willing to help with all kinds of business tasks from bookkeeping to business advice. A reputable accounting firm can assist a small business wide a range of important accounting tasks, including:

  • Recording receipts
  • Tax returns
  • Setting financial targets
  • Business decisions
  • Bookkeeping

If you find a good quality accountant who has experience working with a variety of SME’s, they can have a hugely positive impact on your company. They’ll tell you how to make the right decisions and when to make them.

Saving You Time

A good accountant will save you a lot of time, time is something you need when trying to help a small business develop. If you’ve no time to work on your core services, you’ll be unable to move forward, expand and beat the competition.

Complex Tasks

Accountants are able to manage all kinds of tasks, from simple to highly complex. Most small business owners don’t have extensive knowledge of accounting.


They’ll look after your tax; they’ll be able to reduce your tax bill and free up money for other ventures.


Essential Must-Knows About Mortgage Loans

Purchasing your first house is perhaps one of the most critical decision you will make in life. It is not just about acquiring property, but it is also a long-term commitment. Your house will need maintenance, and that means additional expenses for you. It will also take you around ten to twenty years to pay for the mortgage loan. Therefore, you need to be financially ready before taking out a mortgage loan.

There are many things you can do to prepare yourself in purchasing your new home. However, the first thing you need to do is getting to know the essential factors considered by lenders when they process your application for a mortgage loan. Without these things, you won’t probably get approved for a mortgage loan. Thus, you need to know as much as you can about the essential elements in a mortgage loan to ensure that your purchase is successful and you won’t regret in the future.

Credit Report is Needed

Your credit report is needed when you wish to apply for Houston home loans. It is one of the primary requirements. You need to make sure that your credit history is right and you have a good credit score. Usually, the required score is 640; however, stricter lenders often require 680 and above.

On the other hand, government-insured loans often require 580 only. When it comes to your credit history though, you have to be careful to make your current payments on time and not to get behind as it may cause the mortgage loan to get denied. Remember, any bad history will remain in your credit report for seven years.

Financial Report is Standard

Your financial statement is also necessary. After all, it is your lenders’ basis as to how much you make a month, how much are your current expenses and how much you can pay per month. They will usually look into your bank account and statements. They will check on your money flow every month so better make sure you have no adverse balances.

Employment Information is Required

Your employment record is also an essential requirement in taking out a mortgage loan. Usually, lenders require you to have an excellent employment record with a company for at least two years. If you are relatively new in your company, better wait it out first. However, some lenders consider different companies over the last two years as long as they are in the same industry. However, it is not a rule, so everything is based on the discretion of your lender.

Interest Rates are Varied

What you have to know and understand about mortgage loans is that they also come with different terms as well as interest types and rates. Therefore, you need to learn as much as you can about a particular loan before signing on it. There are many instances when the loan with the higher interest rate ends up with less payment since the price is fixed and there are no additional or hidden charges. Do your research, so you will not end up paying more money than what you have bargained for.

Finance News

What is critical illness cover and how does it work?

The change in lifestyles of people in the digitized world has made them susceptible to several diseases and ailments. You must have heard of critical illness insurance policies, that the reputed insurance providers offer. The policy provides a lump sum coverage to the insured person, when he or she is diagnosed with a defined illness during the policy term. You might need a critical illness policy, even if you are holding a comprehensive health insurance policy. At times, the expenses for treating specific ailments like heart attacks, brain stroke or kidney failure may be too high. Particularly, for senior citizens, covering these expenses turn out to be a difficult task, even if the person remains covered with a comprehensive policy. You might buy a critical illness policy from a reputed insurer to keep yourself financially secure against huge medical expenses.

How do critical illness policies work?

Well, you should be knowing that critical illness policies are different from normal health insurance covers and mediclaim policies. Under a critical illness plan, the policyholder receives a lump sum about from the policyholder. Some serious ailments remain listed in the scheme. In case the policyholder suffers from any of these, the benefits can be obtained. In case you are looking for a critical illness cover for yourself or any of your family members, you can check out the schemes offered by the insurers. The amount that you receive may be used to complete the payment for the cost of treatment and other recurring costs. In case you want to pay off the debts for treatment, you can use this money.

How much coverage to seek for critical illness?

You must have noticed that healthcare costs are rising over the years. Therefore, you need to make sure that the overall cost of critical illness should be touching several lakhs. For middle-class families, it may not be possible to arrange for large amounts immediately. They need to break the present investments or borrow money from others. In most of the cases, the earning capacity of the family is rendered by the critical disease. Therefore, it is advisable to purchase a critical illness coverage after considering factors such as family history, job, medical costs and age. It may happen that you need a critical illness policy as the coverage that the comprehensive package offers gets exhausted.

Who needs a critical illness coverage?

A critical illness coverage may be required by a variety of people for different reasons. In case you are single, you may need a critical illness cover to make sure that the mortgage gets paid. People having children may also buy a critical illness insurance policy to ensure that they have the necessary flow of funds, if they are unable to work due to poor health conditions. Besides, when you recover from a critical illness, certain extra expenses may be involved. The policy will provide coverage for all these expenses.

It appears that most people can benefit from critical illness policies. Visit the websites of the reputed insurers to know more about these plans.

Business tips & News

Metatrader 4 – The Most Convenient Method to Trade in Forex Market

Metatrader 4 is obviously one of the very most preferred systems for forex currency trading surrounding the world. Ask any expert, and he/she will let you know that it’s their choice as well, for the straightforward reason that it’s simple to operate and provides a thorough view of the global market segments. And one of the main element tools that are instrumental in supplying this system its current favorite position is the Metatrader Forex Indicator(s). With this tool, you could have the border of technology working for you to progress trading acumen and drive higher dividends on your opportunities. And undoubtedly, another factor that allures individuals and dealers, brokers alike to the tool is the actual fact that it’s free.

Mt4 is Helpful

There is a critical factor about the merchandise which is the capability to exit and go into the exchange as mentioned by essentials for lucrative deals. In this manner, the supplier is less stressed, which helps the broker to operate the winning aspect of the trade. Another viewpoint is that, after the product owner places the parameters, it can check out the business enterprise sector and produce the rundown of conceivable beneficial trades even though you are away. But always devote mind that it is only a list.

Trading or trade decision is up to the broker rather than MetaTrader. Yes, the product owner has control over exchanges. You can find yet another alternative: you may use MetaTrader with a Forex trading program to aid your probability of taking advantage. The robot can do the trading for you. Indeed, as clarified a while just lately, this is a development of man’s marvelous personality. Along these lines, this creation also offers restrictions, which can be, the execution is merely in light of the guidelines as well as your decision to operate.

MT4 Signals

The Metatrader 4 signal provides you its main profit by means of delivering the latest media in real-time changes on your pc screen. And although they could or may well not have any effect on the existing trade, you’ll at least stay up to date on the recent improvements on the market, and wouldn’t typically have to consider another source like the television set or websites that will definitely disrupt your attention when you are trading. Further, there’s also a variety of currencies that you can operate via this system, and also leverage the info provided from the charts that give information about the record as well as the existing status.

It might help you make better decisions and spend money on the right place via Metatrader 4. In case you feel that an excessive amount of information is likely to be confusing, be confident that it’s heading to stay as user-friendly as ever before since everything is expected to be organized and located in a manner that is not hard to learn and comprehend. In the long run, I’d just say that the Metatrader 4 forex signal is a superb tool to help you commit properly in forex, and must be attempted at least one time.

Business tips & News

Main Benefits And Guidelines You Can Acquire from Automated Forex Trading

Forex trading these days is a lucrative business to pursue. Nonetheless, the profitability will not come easy. As a forex trader, there are several essential things you require to learn just like knowing how to assess significant trading indicators. Within order to make things easy for you, you would need to think about automated foreign exchange trading. It involves the utilization of tested and reliable programs to handle your trading activities.

Benefits Associated with Automatic Currency trading

Using an automated system for trading allows you to operate your business without worrying about any miscalculation and misstep. You will also not miss any kind of profitable opportunity with this computerized system. Since forex marketplaces open/close continually, there will undoubtedly be frequent changes in the market too. It might then cause you to lose or skip out various opportunities on the market. These probabilities can be offset in the direction of your favor by an automated forex trading system. An excellent computerized system is usually filled with plenty of useful features. The system is ideal if it can automatically stop trailing if you are losing from a particular location. It can restrict or cease purchases. It can also analyze numerous technical indicators just the way you like.

When the benefits as mentioned above associated with automatic trading piqued your interest, do not just hastily go off in buying the first software the thing is. Instead, you need to follow some remarkable tips on how you can get an ideal system to use in your automatic currency trading.

Provision Of Safety

When you wish to trade over the internet, security is probably the topmost concerns for you. Therefore, before buying your software and actually using it in trading, be certain that it is safe. Encryption of information by the trading software for forex will be necessary to ensure you of a safe and secure trading setting.

Updates On Real-time

Traders must perform their businesses and tasks based on the current price movement of the market. Therefore, in case you see any fluctuations in the market, you should know them at the earliest opportunity so you can reflect them in your trading. Such timely updates should be provided from your chosen software.

Speedy and Easy to Use

The best software to choose for trading is one that is user-friendly and functions quite speedily. You can find programs that are too complicated for an investor to make use of. It can take a great deal of your valuable time figuring out how to make the device perform; thus creating you to lose earning opportunities definitely.

Use of A Demo Account

Software programs typically provide a demo account that users can set upward for free. Such opportunities must be studied advantage of when choosing software. It will allow you to determine whether the program can actually meet your expectations. You will also become acquainted with the device and find out there more about its advantages/disadvantages without spending any money.

Finance News

Top 10 Mutual Funds which you should be investing for 9-10 years

Slowly but steadily, market linked uncertainties and the resultant fluctuations have begun to cast a gloomy shadow on different saving instruments. During such times, it is important for investors to find long-term, secure and sustainable modes of investment. Thus, it comes as no surprise that most people are now shifting towards safe and reliable havens like mutual funds.

However, choosing a specific mutual fund that can cater to all your needs, especially if you want to invest for a longer tenure, requires extreme diligence and caution. This is why you must select only those funds which have continually performed well over the years and still harbour the potential of offering good returns.

Listed here are the top ten mutual funds which can help you lower your risk profile and enhance your reward potential, if you invest in them for a period of 9 to 10 years.

1. Aditya Birla Sun Life Frontline Equity Fund (G)

Conceived as a major large-cap fund, the Aditya Birla Sun Life Frontline Equity fund is essentially an open-ended instrument which has consistently provided returns ranging from 14% to 20% over a tenure of 7-10 years. This fund is primarily meant for investors who are seeking long-term capital growth and income generation possibilities. It requires a minimum investment of Rs. 1,000, while the maximum investment can be up to any amount.

2. Franklin India Prima Fund

The Franklin India Prima Fund is a mid-cap, equity fund which has provided an overwhelming 21% returns in the past 10 years. It is fundamentally an open-ended growth scheme that focuses on the singular objective of capital accumulation and appreciation. In the 26 years since its inception, this fund has furnished one of the highest dividend distribution ratios. The minimum investment required to be a part of this fund is Rs. 5,000.

3. Franklin India Smaller Companies Fund

Launched in 2005 as an open-ended, small cap fund, the Franklin India Smaller Companies Fund is, at its core, a highly diversified equity scheme. It invests its assets in small and mid-cap companies belonging to a multitude of sectors, which are likely to follow a high growth trajectory in the near future. Long-term capital growth has been identified as the fund’s basic objective. It’s returns in the last 10 years have varied between 11% to 22%, thereby turning it into a cost-effective and tax-efficient mutual fund.

4. Franklin India Focused Equity Fund

Previously named as Franklin India High Growth Companies Fund, the Franklin India Focused Equity Fund offers around 19% returns for a 9-10 year horizon. It is basically a diversified fund that invests in companies which have a potential for high growth. In the beginning, the fund requires a minimum investment of Rs. 5,000. Most of its holdings are locked in banking, finance, telecom, and pharmaceutical companies.

5. DSP BR Tax Saver Fund (G)

As the name itself suggests, the DSP BR Tax saver fund is essentially a tax-saving scheme which requires a minimum investment of an amount as low as Rs. 500. It is primarily constituted of equity and other similar corporate securities, holding which can make an investor eligible for tax deductions under section 80 (C) of the Income Tax Act, 1961. The fund’s objective is to generate capital appreciation by providing assured returns that range from 15% to 17% in the longer run.

6. Canara Robeco Blue-Chip Equity Fund (G)

Ranked as number 1 in the large-cap category, the Canara Robeco Blue-Chip Equity Fund is known for generating steady returns of approximately 12%-13% over a 10 year period. Predominantly, the fund invests in companies which have a large share of market capitalisation. These include organisations from engineering, technology, and banking sectors. 95% of the fund’s assets are allocated to equities which require a minimum investment of Rs. 5,000.

7. Axis Mid-Cap Fund (G)

Considered to be one of the top three funds in the mid-cap category, the Axis mid-cap fund has provided yields of 15% to 20% in a tenure of the past 9-10 years. It basically invests in the equity instruments of companies in the finance, manufacturing, and automotive sectors. Introduced in 2011, the fund requires a minimum investment of Rs. 5,000 and has an asset size of nearly Rs. 1,500 crore. It has a small exit load of 1%, thereby helping investors significantly lower their risk profiles.

8. Reliance Small Cap Fund- Direct (G)

Offering returns as high as 27% in ten years, the Reliance Small Cap Direct Fund is a highly sought after financial instrument. Most of its holdings are allocated amongst a plethora of well-founded companies in the manufacturing, telecom, technology, and chemicals sectors. Like its counterparts, the fund requires a minimum investment of Rs. 5,000 and aims at a goal of long-term capital appreciation. However, its investments include a portfolio of both, equity and debt instruments.

9. Kotak Standard Multi-Cap Fund

The Kotak standard multi-cap fund yields returns ranging from 15% to 18% over a period of 9-10 years. 91% of the fund’s assets are allocated to equity instruments whereas, the remaining are locked in debt securities. The fund has a diversified portfolio consisting of a wide array of sectors like oil & gas, banking, finance, and engineering. Within 10 years of its launch, the fund has been able to create an asset size of about Rs.15,000 crore. The minimum investment amount for this fund too is Rs. 5,000.

10. IDFC Tax Advantage (ELSS) Fund (G)

Conceived as open-ended, growth fund in 2008, the IDFC tax advantage (ELSS) fund invests in equities and aims at providing steady returns of about 16% in the longer run. Being an equity linked saving scheme, the fund has a minimum investment of Rs. 500 and makes an investor eligible to claim tax benefits under 80 (C). The assets of the fund are broadly allocated between sectors as varied as finance, real estate, retail, and food & beverage.

The Way Forward

Owing to the benefits of professional management and diversification which mutual funds provide in full measure, most of the aforementioned funds are competent enough to generate income and hedge profits. In an era where rising inflation and economic upheavals are a norm, these mutual funds and their financial safety blanket is indeed a vibrant exception. You can click on the given link to know more about the top 10 mutual funds.

Business tips & News

All you need to know about SEO:

SEO stands for Search Engine Optimization. This process helps in ameliorating the traffic coming to your website. SEO works on the basis of two factors, namely Quality and Quantity. Quality of traffic ensures to attract the target customers to your website. Luring all the customers will not help a company to grow. For example, if you are selling a computer mouse, there would be no point in a customer visiting your site, who are looking for a mouse as a pet. You need to have the right type of people visiting your site. Once the right people visit your website, now this is where Quantity comes in play. The main objective of quantity is to increase the number of visitors, i.e., traffic on to your website.

This is how SEO can help you:

Whether you run a small business or a large company, you definitely need SEO on your side to win the game. In this era of modern technology, it would be a foolish choice to just rely on pamphlets and newspaper advertisements. Most of the people, especially youngster use their smartphones or computers to buy a service. Every business owner needs to have Search Engine Optimization as a primary promoting device to spurt the growth of the business. There are various companies out there which help the businessmen to promote their products through SEO and Inbound Marketing. In past few years, SEO optimization Toronto has helped a large number of businessmen in enlarging their business empire.

Working of Search Engine Optimization:

There are various search engines out there, including Google, Yahoo, Bing, etc. People write their queries in the search box, and the search engines run a complex algorithm to show the results closely matching to what you have just searched. A survey has been done to understand the behavior of customers clearly demonstrate that most of the people only check the top 5 links of their search result. Doing search engine optimization is not everyone’s cup of tea. It requires the person to be skillful. You need to have a good understanding of what your customers need. You need to think like your customer, so you could know what they will try to search when they are looking for a product online. For sure, PPC advertising and Inbound marketing bring a massive amount of traffic, but SEO is the base of your business as it demonstrates your online presence to the customers.