AMCI ASSOCIATES LTD
Tel: +44 121 327 8316
AMCI specialises in supporting owner managed businesses and tax payers in the UK and beyond in terms of provision of high quality accountancy and business advisory services. ‘Adding value every step of the way’ is what we do for our clients that see us as a ‘one stop shop’ for all their financial needs.
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|Budget 2021: tax rates and allowances|
|Income tax rates: England, Wales & Northern Ireland|
(non-dividend income) (note 1)
|0% starting rate for savings only||Up to 5,000||Up to 5,000|
|20% basic rate tax||12,571-50,270||12,501-50,000|
|40% higher rate tax||50,271-150,000||50,001-150,000|
|45% additional rate tax||Above 150,000||Above 150,000|
|Note 1: Welsh income tax rates and thresholds are subject to parliamentary approval, however the Welsh Government has made a commitment not to raise Welsh Rates of Income Tax. Therefore, Welsh taxpayers will continue to pay the same rates as their English and Northern Irish counterparts. |
TheIncome tax bands will remain frozen until tax year 2025-26.
|Scottish rates of income tax (non-dividend income) (note 2)|
|19% starting rate||12,571-14,667||12,501-14,585|
|20% basic rate tax||14,668-25,296||14,586-25,158|
|21% intermediate rate tax||25,297-43,662||25,159-43,430|
|41% higher rate tax||43,663-150,000||43,431-150,000|
|46% top rate||Above150,000||Above150,000|
|Note 2: Scottish taxpayers pay the same tax as the rest of the UK on dividends and savings interest. Scottish income tax rates and thresholds are subject to parliamentary approval.|
|Income tax rates (dividend income)|
|Dividend ordinary rate (for dividends within basic rate band)||7.50%||7.50%|
|Dividend upper rate (for dividends within higher rate band)||32.50%||32.50%|
|Dividend additional rate (for dividends above higher rate band)||38.10%||38.10%|
|Child benefit/guardian’s allowance rates (notes 3 & 4)|
|Higher rate (eldest or only child) (per week)||£21.15||£21.05|
|Guardian’s allowance per week||£18.00||£17.90|
|Note 3: An income tax charge will apply to taxpayers with ‘adjusted net income’ exceeding £50,000 in a tax year, when child benefit is also received by them or their partner. The charge will reduce the financial benefit of receiving child benefit for those with income between £50,000 and £60,000 and remove it completely for taxpayers with income above £60,000.|
Note 4: From January 2021,no child benefit payments are made in respect of children living overseas.This will apply to EEA migrants arriving in the UK under the new immigration system.
|Personal allowance (note 5)||12,570||12,500|
|Maximum married couple’s allowance for those born before 6 April 1935 (note 6)||9,125||9,075|
|Married couple’s allowance – minimum amount||3,530||3,510|
|Micro entrepreneur’s allowance: individuals making property or trading incomes below the level of the allowance will no longer need to declare or pay tax, while those whose income exceeds the allowance have the choice of simply deducting the allowance instead of calculating their exact expenses or calculating their profits in the normal manner||Allowance:|
| Allowance: 1,000|
|Income limit for personal allowance (note 7)||100,000||100,000|
|Income limit for married couple’s allowance: born before 6 April 1935||30,400||30,200|
|Blind person’s allowance||2,520||2,500|
|Transferable/shareable tax allowance for married couples and civil partners (note 8)||1,260||1,250|
|Personal savings allowance for basic rate taxpayers||1,000||1,000|
|Personal savings allowance for higher rate taxpayers||500||500|
|Personal savings allowance for additional rate taxpayers||0||0|
|Note 5: From 2016/17 onwards, all individuals are entitled to the same personal allowance, regardless of the individual’s date of birth. This allowance is subject to the £100,000 income limit which applies regardless of the individual’s date of birth.|
|Note 6: This allowance is reduced by £1 for every £2 of income in excess of the income limit, but married couple’s allowance will not reduce below £3,530.|
|Note 7: Personal allowances are subject to the £100,000 income limit, which applies regardless of the individual’s date of birth. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit, down to zero.|
|Note 8: This allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates.|
If the couple marry or register a civil partnership, they will get the allowance on a pro-rata basis for the rest of that tax year. If one of them dies or there is a divorce or separation, the allowance continues until the end of the tax year.
|Lower earnings limit, primary class 1 (per week)||£120||£120|
|Upper earnings limit, primary class 1 (per week)||£967||£962|
|Apprentice upper secondary threshold (AUST) for under 21s/25s||£967||£962|
|Primary threshold (per week)||£184||£183|
|Secondary threshold (per week)||£170||£169|
|Employment allowance (per year/employer) (note 9)||£4,000||£4,000|
|Employee’s primary class 1 rate between primary threshold and upper earnings limit||12%||12%|
|Employee’s primary class 1 rate above upper earnings limit||2%||2%|
|Married woman’s reduced rate between primary threshold and upper earnings limit||5.85%||5.85%|
|Married woman’s rate above upper earnings limit||2%||2%|
|Employer’s secondary class 1 rate above secondary threshold||13.80%||13.80%|
|Class 2 rate (per week where profits are above small profits threshold)|| |
|Class 2 small profits threshold (per year)||£6,515||£6,475|
|Special class 2 rate for share fishermen (per week)||£3.70||£3.70|
|Special class 2 rate for volunteer development workers||£6.00||£6.00|
|Class 3 voluntary rate (per week)||£15.40||£15.30|
|Class 4 lower profits limit||£9,568||£9,500|
|Class 4 upper profits limit||£50,270||£50,000|
|Class 4 rate between lower profits limit and upper profits limit||9.00%||9.00%|
|Class 4 rate above upper profits limit||2.00%||2.00%|
|Note 9: From April 2020, this will be limited to employers with an employer NIC bill below £100,000 in the previous tax year.|
Any deemed payments made to off-payroll workers do not count towards the £100,000 employers (secondary) class 1 NICs total. You cannot claim employment allowance for these workers.
Employment allowance cannot be claimed for off-payroll workers.
|Annual allowance (note 10)||40,000||40,000|
|Lifetime allowance (note 11)||1,073,100||1,073,100|
|Money purchase annual allowance (note 12)||4,000||4,000|
Note 10:The annual allowance is a limit to the total amount of contributions that can be paid to a defined contribution pension scheme and the total amount of benefits that you can build up in a defined benefit pension scheme each year, for tax relief purposes.
Since 6 April 2016, individuals with a high income have had a tapered annual allowance, where for every £2 of adjusted income over a threshold, an individual’s annual allowance is reduced by £1. From 6 April 2020, the Tapered Annual Allowance applies for individuals with ‘threshold income’ of over £200,000, and ‘adjusted income’ of over £240,000. The annual allowance will be £4,000 for individuals with total adjusted income (including pension accrual) over £312,000.
From April 2021, the annual allowance for individuals with total income (including pension accrual) of over £312,000 will be £4,000.
Note 11: The lifetime allowance will remain same at the current level of £1,073,100 until April 2026.
Note 12: The annual allowance is currently capped at £40,000, although a lower limit of £4,000 may apply if you have already started drawing a pension.
|Reliefs and incentives|
|Enterprise Investment Scheme (EIS) – maximum (note 13)||£1,000,000||£1,000,000|
|Venture Capital Trust (VCT) – maximum||£200,000||£200,000|
|Enterprise Management Incentive Scheme (EMI) – employee limit up to the value of £250,000 in athree-year period||£250,000||£250,000|
|Seed Enterprise Investment Scheme (SEIS) – maximum (note 14)||£100,000||£100,000|
|Social Investment Tax Relief (SITR) – maximum||£1,000,000||£1,000,000|
|Income tax relief on EIS schemes||30%||30%|
|Income tax relief on VCT schemes||30%||30%|
|Income tax relief on SEIS schemes||50%||50%|
|Income tax relief on SITR schemes||30%||30%|
|Note 13: From 6 April 2018, the annual limit is doubled to £2m, provided that any amount over £1m is invested in one or more knowledge-intensive companies.|
Note 14: Capital gains tax reinvestment relief may also be available for investments made in 2018/19 on 50% of the amount invested.
|Individual Savings Account (ISA):||£||£|
|ISA (NISA) annual limit||20,000||20,000|
|Junior ISA investment annual limit – under 18, living in the UK||9,000||9,000|
|Child Trust Fund annual limit||9,000||9,000|
|Lifetime ISA annual limit (note 15)||4,000||4,000|
|Note 15: To open a Lifetime ISA you must be 18 or over but under 40. Contributions can be made until age 50. The government will add a 25% bonus to the savings, up to a maximum of £1,000 per year. The lifetime ISA limit of £4,000 counts towards the annual ISA limit.|
|Capital gains tax||2021/22||2020/21|
|Basic rate tax payer||10%||10%|
|Higher rate tax payer||20%||20%|
|Gain on sale of residential property|
|Basic rate tax payer||18%||18%|
|Higher rate tax payer||28%||28%|
|Annual exemption – individuals / trusts for disabled persons (note 16)||£12,300||£12,300|
|Annual exemption – other trusts||£6,150||£6,150|
|Business Assets Disposal Relief lifetime limit (note 17)||£1,000,000||£1,000,000|
|Investors’ Relief lifetime limit||£10,000,000||£10,000,000|
|Note 16: Annual exemption of £12,300 is frozen until tax year 2025-26. |
Note 17: Business Assets Disposal Relief (formerly Entrepreneurs’ Relief) lifetime limit reduced from £10m to £1m for disposals made on or after 11 March 2020.
|Single person’s nil-rate band||£1 – £325,000||£1 – £325,000|
|Single person’s 40% band||over £325,000||over £325,000|
|Residence nil-rate band (RNRB) – maximum (note 18)||£175,000||£175,000|
|Reduced rate (note 19)||36%||36%|
|IHT rate (for chargeable lifetime transfers)||20%||20%|
|Married couples or civil partnerships allowance nil-rate band||£650,000||£650,000|
|Gifts to charities||Exempt||Exempt|
|Small gifts to same person||£250||£250|
|General gifts – annual exemption||£3,000||£3,000|
|Wedding gifts to children||£5,000||£5,000|
|Wedding gifts to grandchildren||£2,500||£2,500|
|Wedding gifts to any other person||£1,000||£1,000|
|Note 18: The RNRB is available in respect of a main residence given away to children (including adopted, foster or stepchildren). Any unused nil-rate band transfers to the deceased’s spouse or civil partner, even where death predates the availability of the additional threshold. It applies in addition to the existing nil-rate band (NRB) or threshold (currently £325,000) if the individual and estate meet the qualifying conditions.|
Note 19: The estate can pay inheritance tax at a reduced rate of 36% on some assets if you leave 10% or more of the net value to charity in your will.
|Business Property Relief||2021/22||2020/21|
|Business or interest in a business and transfersof unquoted shareholdings||100%||100%|
|Taxation of trusts||2021/22||2020/21|
|Accumulation or discretionary trusts:|
|Trust income up to £1,000 – dividend type income (note 20)||7.50%||7.50%|
|Trust income up to £1,000 – all other income||20%||20%|
|Trust income over £1,000 – dividend type income (note 20)||38.10%||38.10%|
|Trust income over £1,000 – all other income||45%||45%|
|Interest in possession trusts:|
|Dividend type income||7.50%||7.50%|
|All other income||20%||20%|
|Note 20: Trustees do not qualify for the dividend allowance. This means trustees pay tax on all dividends depending on the tax band they fall within.|
|All profits and gains (excluding determination agreements and diverted profits) (note 21)||19%||19%|
|S.455 tax on loans made by close companies to participators||32.50%||32.50%|
|Note 21: Corporation tax rate will remain at 19% until March 2023. From April 2023, the main rate will increase to 25% for business profits made by the company over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay Corporation Tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.|
|Main writing-down allowance (reducing balance)||18%||18%|
|Special rate writing-down allowance (reducing balance)||6%||6%|
|Structures and buildings allowance (SBA)||3%||3%|
|Motor cars if CO2 > 50g/km but does not exceed 110g/km)||6%||18%|
|Motor cars if CO2 > 110g/km||6%||6%|
|FYA – New and unused motor cars if CO2 emissions are 50 g/km or less (or car is electric) (note 22)||100%||100%|
|Small pool write-off where WDV is £1,000 or less||100%||100%|
|First-year allowances for electric charge points (note 23)||100%||100%|
|Annual investment allowance (AIA) (note 24)||£1,000,000||£1,000,000|
|Annual investment allowance rate||100%||100%|
|Note 22: From April 2021, the thresholds for FYA will be reduced from 50g/km to 0g/km. Main rate of 18% capital allowance will be applicable for business cars with CO2 emissions not exceeding 50g/km. Business cars with CO2 emissions exceeding 50g/km will be eligible for writing-down allowanceat the special rate of 6%.|
Note 23: The allowance will be available until 31 March 2023 for incorporated businesses and 5 April 2023 for unincorporated businesses.
Note 24: From 1 January 2019 the annual investment allowance is increased from £200,000 to £1m for investment made from 1 January 2019. This is temporarily extended until 31 December 2021. The threshold will revert back to £200,000 from 1 January 2022.
|Research and development tax credit rates||2021/22||2020/21|
|Research and development SME payable credit (note 25)||14.5%||14.5%|
|Research and development expenditure credit (RDEC) scheme||13%||13%|
|Film/High-end TV/ videogames tax credit||25%||25%|
|Open-ended investment companies and authorised unit trusts||20%||20%|
|Note 25: For accounting periods beginning on or after 1 April 2021, the amount of SME payable R&D tax credit that a business can receive in any one year will be capped at £20,000 plus three times the company’s total PAYE and NICs liability.|
|Standard rate(note 26)||20%||20%|
|Flat rate of VAT on gross turnover (for limited cost trader)||16.5%||16.5%|
|Normal scheme registration threshold||£85,000||£85,000|
|Cash and Annual accounting scheme – maximum to join||£1,350,000||£1,350,000|
|Cash and Annual accounting scheme – exit threshold||£1,600,000||£1,600,000|
|Flat-rate scheme – maximum allowed to join||£150,000||£150,000|
|Flat-rate scheme exit threshold||£230,000||£230,000|
|Note 26: Due to the Coronavirus pandemic, the hospitality, holiday accommodation and attractions industry can apply a reduced rate of 5% for certain supplies made between 15 July 2020 and 30 September 2021. Further the rates for these sectors will be 12.5% until 31 March 2022 before they are back to normal standard rate of VAT 20%.|
|Annual tax on enveloped dwellings (ATED)||£||£|
|More than £0.5m but not more than £1m||3,700||3,700|
|More than £1m but not more than £2m||7,500||7,500|
|More than £2m but not more than £5m||25,300||25,200|
|More than £5m but not more than £10m||59,100||58,850|
|More than £10m but not more than £20m||118,600||118,050|
|More than £20m||237,400||236,250|
ACCA LEGAL NOTICE
|This is a basic guide prepared by ACCA UK‘s Technical Advisory Service for members and their clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.|
AMCI Associates was founded in 2003 as a specialised boutique accountancy, taxation and business advisory services firm with a focus on small and medium sized businesses and tax payers. We have been serving this sector effectively by helping many start-up businesses achieve unprecedented success. We are trusted advisors with strong ethical leadership and our clients see us as a ‘one- stop shop’ for whatever challenges they are facing.
Our high quality service is akin to a small and medium sized business outsourcing their finance department to us with a significant cost saving and we treating every client with the level of care and attention as if the business were our own. What makes us unique is not just the ‘one –stop shop’ approach but the care and attention provided to all our clients leading to a highly trusted partner status.
Our successes in the accountancy, taxation and business advisory services aspects has led to formulation of a business training division to ensure that our stakeholders can benefit further from our knowledge and expertise. We offer a unique service offering that ensures complete support and guidance throughout the training process. With a keen focus on quality, we work closely to serve professionals in fulfilling their aspirations through providing cost-effective training packages and professional guidance.
AMCI Associates is committed to be a socially responsible corporate citizen. To ensure this, we treat our stakeholders with dignity and respect adopting an ethical approach to all our activities. In this context, we have established the charity – Mercy Organisation, to whom we donate 10% of our profits to good causes.
Our highly dedicated and committed team strive to achieve excellence and as the CEO, I am honoured to be the leader of this team. Our aim is ‘adding value every step of the way’!
Tel: +44 121 327 8316
Main Office: 133 Tame Road, Birmingham, B6 7DG
Office Hours: Mon – Thur 10.00 – 19.30, Fri 10.00 – 13.00
Welcome to AMCI Associates – Accountants and Management Consultants for the owner managed businesses. AMCI Associates is an established firm of accountants, business advisors and also is passionate about management and leadership training to ensure that you and you’re business succeeds.
As our clients come from all walks of life, we offer them jargon free personalised service so that they can minimise their taxes and maximise their earnings. Whether you are a micro, small or medium sized business or a tax payer, we can support you as trusted advisors by providing:
- Accountancy Services: Book Keeping using cloud technology, Accounts Production, Personal and Business Taxation, VAT, and Payroll
- Business Advisory Services: Company formations, Business Start-up, Business Planning, Research and Development Credits, Various short, medium and long term finance options including mortgages, Project Management and Tax Investigation Insurance
- Management & Leadership Short & effective Training Courses: Business Leadership for busy SME Executives, Leadership development for emerging Executives, Finance for non financial manager, Advance Finance for non financial manager, Business Start-up, Business Development
Our result focused approach means we build strong, long lasting relationships with our clients. AMCI works with their clients to support them meet their aims and aspirations. In doing so, we shall save you time, assist you to gain greater returns on investment and minimize risks. We shall support you now and in the future, and give you complete peace of mind. We offer bespoke service delivery. If there is anything you need, feel free to just ask us!
AMCI GROUP OF COMPANIES:
- AMCI LTD
- AMCI ASSOCIATES LTD
- AMCI MANAGEMENT SERVICES LTD
- AMCI ESTATES LTD
- AMCI PROJECTS LTD
- MERCY ORGANISATION
If you are seeking a highly experienced, reliable, professional and approachable firm, then we are here to support you to succeed, so feel free to contact us at
Tel: +44 121 327 8316
Adding value every step of the way!
Who are Starling Bank?
Founded in 2014 by Anne Boden, Starling is the UK’s first mobile bank offering super-fast setup, beautifully simple money management and 24/7 support, all with no monthly fees. From small businesses with big ambitions to freelancers figuring out tax returns, Starling’s award-winning business bank account is designed to make entrepreneurial life a little easier.
No monthly account fees
Apply in minutes, with no three week waits.
Integrate with Xero, QuickBooks and FreeAgent
24/7 UK customer support
Stay in the know
With real time payment alerts and categorised transactions for spending insights.
Deposit money at over 11,500 Post Office branches *. Send cheques via freepost, too.
We’re a fully registered bank and the FSCS protects any money you keep with us up to £85,000 for eligible customers.**
Who’s eligible for a Starling business bank account?
● You’re the owner of a limited company and you’re the only person with significant control
(PSC) over it.
● You’re part of a limited company with multiple owners. With our multi-PSC account, you and
your fellow PSCs will each get a Mastercard debit card and access to a beautifully simple
mobile bank account. For more information, read our blog post titled ‘Introducing:
Multi-owner mobile business accounts for limited companies’.
● You’re self-employed. Our sole trader account is available exclusively to those who already have a Starling Bank personal account.
Entities engaged in, or linked in any way to, certain activities may not be able to open or have a businessbank account with Starling. Visit our Legal Documentation page at https://www.starlingbank.com/legal/ and select Business Current Account Terms for more information.
Apply in minutes
It takes just a few minutes, direct from your mobile. No paperwork or branch visits required.
● To Get Started please Click Here.
● Download the app from Google Play Store or the App Store .
● Enter your personal details
● Verify who you are by uploading your identification documents and sending us a short video
● We’ll carry out some quick checks at a UK Credit Reference Agency
● Provide a few details about your business, such as its day to day activities and online
● We will then look to approve your application as soon as possible so you can start making the most of all the features to help you manage your business finances better.
At AMCI Associates Ltd, we have been providing high quality accountancy, taxation and business advisory services to owner managed businesses nationwide for over 17 years. A relentlessly client focused firm. What makes us unique is the care and attention provided to all our clients leading to a highly trusted status. Our approach lies in offering clients a specialised service, akin to clients outsourcing their finance department with significant cost savings!
We are a proactive firm that helps clients to keep control of their business by reducing risk, minimising costs and maximising profits. We assist you to grow so that you can achieve your goals of financial freedom. Your success is our success!
These are a few comments from our clients…….
Marc Greene (Director – Skirting World Ltd)
AMCI Associates Ltd has been advising us from the start of our entrepreneurial journey for nearly 10 years. Without Ihqlak’s (Director) sound advice on cash flow management, profitability and business development, we would not have become a multi-million pound business within a short period of time. He is truly the father our business and we cannot thank him enough and his team for all the support given.
Clare Hitchens (Head to Toe Beauty) & Paul Upton (Director – A1 Top Job Ltd)
Clare – Without your help Ihqlak, I could not have got the business started. You and your team are absolutely amazing!
Paul – Thank you for advising us over many years, your support has been immensely appreciated.
Katie Smith (Director – Stechford Trucks Ltd)
Highly recommend AMCI Associates Ltd. They have helped us so much with so many aspects of our business including strategic development, taxes, cash flow and human resource planning. I couldn’t do without them.
Saleem Sattar (Director – Professional Services & Catering Businesses)
I have been with AMCI Associates since I qualified as a Pharmacist many years ago and cannot rate their service highly enough. Ihqlak (Director) is very knowledgeable, professional and thorough. I have total peace of mind knowing he is dealing with all the nitty gritty details of my accounts. That’s not all, AMCI Associates are very proactive in chasing me if I am late (sorry Ihqlak) and genuinely care to ensure I have my affairs in order to give the complete package of personal and professional service. Thanks Ihqlak.
Jassy Rai (Entrepreneur & Property Investor)
I have been with AMCI Associates Ltd for over 10 years now and like previous reviewers have said, the service is first class. Ihqlak is very experienced in his field and equally as knowledgeable and is backed up by a very effective team. Nothing is too much trouble including, raising of finance at very competitive rates! I would not go anywhere else. Keep up the good work!
David Walton (Director – SBD Services Ltd)
Ihqlak’s advice and help has been invaluable. His understanding of international markets has greatly assisted me to develop my business despite the Brexit debacle.
If you would like to know more about how we can assist you, please contact us for a free, no obligation, one hour business review to assess your needs.
BA (HONS) PGCHE, FMAAT, FCCA
FOUNDER & CEO – AMCI
Tel: +44 121 327 8316
Main Office: 133 Tame Road, Birmingham, West Midlands, B6 7DG
Office Hours: Mon – Thur 10.00 – 19.30, Fri 10.00 – 13.00
With less than 30 days to go until the Brexit transition period ends, you need to act now!
Regardless of any free trade deal from 1st January 2021, there will be additional paperwork and border checks. The UK will not require importers into the UK to produce post-Brexit customs declarations or pay any tariffs until 30th June 2021 after which the imports and exports via the EU will be treated the same was as any other non-EU state such as China or Australia. Due to border controls, expect delays. The Border Operating Model is your manual for the EU trade. www.gov.uk/government/publications/the-border-operating-model
It is vitally important for importers and exporters to establish who is doing what in each country right now as all your future transaction chains will be affected. Depending on what contracts you have with your customers in EU, goods are likely to take longer to reach final point of supply leading to extra admin and costs.
Every business dealing with EU will require Economic Operators Registration and Identification (EORI) number from HMRC. In some cases, it can take weeks to get this from HMRC. Therefore, contact us soon so that we can assist you with obtaining this number.
Tel: +44 121 327 8316
Main Office: 133 Tame Road, Birmingham, West Midlands, B6 7DG
Office Hours: Mon – Thur 10.00 – 19.30, Fri 10.00 – 13.00