Professional Accounting & Tax Advisory Services in Glasgow City
Looking for expert accountants in Glasgow City? At ERAA Consulting, we provide businesses and individuals with top-tier accounting and tax advisory services. Our team ensures your finances are structured efficiently, helping you save money, stay compliant, and grow your business with confidence.
Key Tax Updates for 2024/25
National Insurance Reductions
The government has reduced National Insurance Contributions (NICs):
- Employees now pay 8% instead of 10%.
- Self-employed individuals see a drop from 9% to 6%.
These changes mean higher take-home pay, but planning your finances correctly is still crucial.
Frozen Tax Bands Impacting Individuals and Businesses
Tax allowances and income tax bands remain frozen until 2028. While this may not seem like an immediate issue, inflation means you could be paying more tax over time. Strategic tax planning can help mitigate these effects.
Child Benefit Changes
The high-income child benefit tax charge threshold has increased, offering relief to many families. However, those earning above £60,000 will still see a gradual reduction in benefits, with full elimination at £80,000.
Personal Tax Planning Strategies | Expert Accountants in Glasgow City | ERAA Consulting
Making the Most of Tax Allowances | Expert Accountants in Glasgow City
- Married couples and civil partners can transfer 10% of their personal allowance to save up to £252 per year.
- NIC Overpayments: If you have multiple jobs, you may be overpaying National Insurance. Claim refunds or prevent excess payments by applying to HMRC in advance.
- Filling NIC Gaps: If you have missing National Insurance contributions since 2006, you have until April 2025 to make voluntary payments and secure your full state pension.
Capital Gains Tax (CGT) on Property Sales | Expert Accountants in Glasgow City
- Any UK property sale must be reported to HMRC within 60 days.
- If you have previously lived in a property, the last nine months of ownership are CGT-free.
- Married couples owning multiple properties must nominate one as their main home within two years to optimize tax efficiency.
Business Tax Planning | Expert Accountants in Glasgow City | ERAA Consulting
Choosing the Right Business Structure
Deciding between operating as a sole trader, partnership, or limited company impacts your tax liability:
- Corporation tax is now 26.5% on profits between £50,000 and £250,000, making some businesses rethink incorporation.
- Sole traders can claim losses more flexibly in the early years of trading.
VAT Registration and Compliance
- If your annual turnover exceeds £90,000, you must register for VAT.
- VAT returns must be submitted using Making Tax Digital (MTD)-compliant software.
Efficiently Withdrawing Profits
- With employee NICs reduced to 8%, business owners should reassess whether salaries or dividends are more tax-efficient.
- Pension contributions remain a great way to extract profits tax-efficiently, reducing taxable income while securing retirement savings.
Tax-Efficient Savings & Investments | Expert Accountants in Glasgow City | ERAA Consulting
Maximizing ISA Contributions
For 2024/25, the ISA allowance remains £20,000:
- Investing early in the tax year maximizes tax-free gains.
- Consider Stocks & Shares ISAs for long-term growth.
Pension Planning & Carry Forward Allowances
The annual pension allowance is now £60,000, but you can use unused allowances from the past three years to contribute up to £200,000 in a single year. This is a powerful tax-saving strategy.
Tax Benefits of SEIS & EIS Investments
- Seed Enterprise Investment Scheme (SEIS): Get 50% income tax relief on investments up to £200,000.
- Enterprise Investment Scheme (EIS): Defer CGT by reinvesting gains in EIS shares.
Property Tax Changes for Landlords | Expert Accountants in Glasgow City | ERAA Consulting
Ending of Furnished Holiday Letting (FHL) Tax Advantages
From April 2025, landlords will no longer benefit from FHL tax reliefs, including:
- Mortgage interest deductions.
- CGT benefits when selling furnished holiday properties.
This change makes it essential to reassess property investment strategies now.
Rent-a-Room & Property Income Allowance
- Earn up to £7,500 per year tax-free from renting out a room in your home.
- The property income allowance allows up to £1,000 tax-free from renting out driveways or garages.
Employee Benefits & Tax Efficiency | Expert Accountants in Glasgow City
Tax-Free Perks for Employees
- Electric company cars: The taxable benefit is just 2% of the car’s value.
- Employer-funded medical treatment: Up to £500 per year is tax-free.
- Trivial benefits: Gifts up to £50 per item are tax-free.
- Salary sacrifice for pensions and electric cars: Employees can save on tax and NICs while boosting their benefits.
Home Working Allowance
Employers can provide £26 per month tax-free for employees working from home, helping offset energy and broadband costs.
Inheritance Tax (IHT) Planning
Making the Most of IHT Allowances
- The nil rate band remains £325,000, with an additional £175,000 residence nil rate band for homes passed to direct descendants.
- Spouses inherit unused allowances, potentially giving a total £1 million tax-free allowance.
Gifting Strategies to Reduce IHT
- Give up to £3,000 per year tax-free.
- Regular gifts from surplus income are immediately IHT-free.
- Invest in AIM-listed shares to qualify for IHT exemption after two years.
Why Choose ERAA Consulting | Expert Accountants in Glasgow City as Your Accountant in Glasgow City?
At ERAA Consulting, we specialize in helping businesses and individuals navigate the complexities of tax and accounting. Our expertise ensures:
- Proactive tax planning to legally minimize tax liabilities.
- Strategic financial advice to grow your wealth and business.
- Compliance support to avoid HMRC penalties and audits.
Contact Glasgow’s Trusted Accountants Today
For expert tax advice and accounting solutions, ERAA Consulting is the premier choice for businesses and individuals in Glasgow City. Get in touch today to optimize your tax position and secure your financial future.
Call us today or book a free consultation!
