Viewpoint Accountants’ Post

⛽ Quarterly Advisory Fuel Rate Update ⛽ 📣 HMRC have published their latest update to their Advisory Fuel Rates which are effective from 1 September 2024. ➡️ You can find the update here: https://lnkd.in/dHuY46M 🗓️ Remember, you can still use the old rates for up to one month after the new rates take effect. #BusinessNews #businessowner #business #businessfinance #businessaccount #expenses #businesstips #ukbusiness #ukbusinessowners

Thinking of selling a second property or cashing in a share portfolio? Capital Gains Tax (CGT) may apply to profits. To reduce this, consider gifting or splitting assets with your spouse or civil partner, utilising both CGT allowances. Transfers must be unconditional. Learn more here: https://bit.ly/3KzEuit #Selling #Property #CGT #Profits

Why Interest is added to Net Income when calculating Free Cash Flow from Net income? —Interest Expense is considered a financing activity not an operating activity. —Free Cash Flow to Firm is the cash available to all capital providers including debt and equity holders. —This is the cash that a company can use to service and pay down debt, pay dividends, buy back shares after accounting for the cash outflows needed to maintain and/or expand its asset base. —FCFF aims to measure the cash generated from the company’s operations before considering the effects of its capital structure. Since, interest is a financing cost and already deducted in calculating the net income, it should be added back. —The key issue is that FCFF is available to both creditors and owners, so it must be calculated on a “before interest” basis. —Adding interest back to Net Income ensures that we are looking at the cash generated from the company’s core operations without the influence of its financing decisions. This provides a clear picture of the company’s operational efficiency and its ability to generate cash flow from its business activities. Why not the full amount of Interest is added back? Why the After Tax Interest is added back? —Interest expense is tax-deductible. This means it reduces the company’s taxable income and consequently, its tax expense. The after-tax interest is added back to Net Income because it’s a cash flow available to the company’s creditors. https://lnkd.in/g7xzjyzB #Finance #Investment #CFA #Equity

💰 Understanding the various types of payments subject to Tax Deducted at Source (TDS) is essential for effective financial planning! 📊 Here’s a quick breakdown: ➡️ Salary ➡️ Lottery Winnings ➡️ Rent Payments ➡️ Professional Fees ➡️ Income from Securities ➡️ Commission Earned ➡️ Interest on Fixed Deposits (FD) Stay informed and ensure compliance with TDS regulations to optimize your financial strategies! ✅ (For information purposes only. Cannot be construed as solicitation.) . . . #TDS #Taxation #FinancialPlanning #IncomeTax #TaxCompliance #InvestSmart #TaxDeduction #IndiaFinance #WealthManagement

Diluted EPS (If converted method) ABC ltd a listed company with a complex capital structure has 10,000 convertible bonds with a face value of $100 and 15% coupon rate, the tax rate is 40% (very high), the net profit of the firm is $5,000,000 with 40,000 common equity in the market. now we are going to find out the diluted EPS if the bond holders decided to convert those 10,000 bonds. Step 1 Finding basic EPS =Net profit /outstanding shares =$5,000,000/40,000 =125 Step 2 If the bonds are converted =10,000+40,000 =50,000 Step 3 Since we are no longer required to pay the interest that means our profit before tax would increase and also the tax benefits would be removed =10,000*$100*15% =$150,000 =$150,000*(1-40%) =$90,000 Step 4 Our new net profit will be =$5,000,000+$90,000 =$5,090,000 Step 5 Diluted EPS =Net Profit/Outstanding Shares =$5,090,000/50,000 =101.8 #cfa #company #analysis #learning #skills #shares #financejobs #ratioanalysis

Where All Can You invest Under Section 80C ? . . ..#taxpayers #taxfiling #itrfiling #incometaxreturn #incometaxfiling #incometaxreturnfiling #assessmentyear #financialyear #revisedreturn #belatedreturn

2023/24 is on track to be another record year for Inheritance Tax receipts. Despite much chatter in the press about the tax being abolished, nothing came out of the Spring Budget, so it appears to be around for the time being at least! Whilst there are many strategies available to mitigate or plan for IHT, most are impacted by a client's age, poor health, or the desire to retain access and control (whether it's likely to be needed or not). Investments that qualify for Business Relief can be exempt from IHT in two years, and allow the investor to retain control and access (subject to liquidity). Investments can target growth, income and some capital preservation. If it's an area you're unfamiliar with, please get in touch to learn more and find out how you might be able to help your clients improve their estate planning. 📧 [email protected] ☎️ 07398838091 Capital at risk. #iht #inheritancetax #inheritancetaxservices #inheritancetaxplanning #estateplanning #businessrelief #br #bpr #aim #gifts #trusts #protection #wealthtransfer

I love what we do! We keep it simple, we help businesses avoid liquidation as you'll read in the case below. Our clients always come to us to avoid liquidation and bankruptcy. We look at all possibilities and the outcomes can be amazing, some have even said, life-changing. If you or your client have tax debt and you would like to know if avoiding liquidation or bankruptcy is possible, call us on 03 9070 9846. #taxdebt #taxhelp #taxassist #taxreduction #taxcompromise #liquidation #insolvency #negotiate

Thinking of selling your second property? Cashing in a share portfolio? Whether you give away assets to your other half or do something entirely different, we can help you manage your finances as tax-efficiently as possible. #CGT #financialplanning

Fixed Deposits (FDs) and Secured Listed Redeemable Non-Convertible Debentures (NCDs) are popular investment options for investors seeking fixed returns. However, there are distinct differences between the two that investors should consider. Fixed Deposit (FD) - Returns: 8.5% per annum - Taxation: Interest income from FDs is taxed as per the investor's income tax slab rate. Assuming a 20% tax slab, the post-tax returns would be 6.8%. **Secured Listed Redeemable Non-Convertible Debentures (NCDs)** - Yield: 10.66% per annum - Taxation: NCDs enjoy the benefit of indexation, which adjusts the purchase cost for inflation, thereby reducing the taxable portion. Additionally, long-term capital gains (LTCG) on NCDs are taxed at a flat rate of 10%. Considering the above, NCDs offer a higher post-tax yield compared to FDs for investors in the 20% tax slab. However, it's essential to note that NCDs carry a higher risk than FDs, as they are market-linked instruments subject to interest rate and credit risk. Investors should carefully evaluate their risk appetite, investment horizon, and overall portfolio before deciding between FDs and NCDs. #FixedDeposit #NonConvertibleDebentures #Investment #TaxPlanning #FixedIncome