Small business owners are often required to wear many hats, overseeing a range of tasks from project management to customer service and everything in between. The multitude of responsibilities for those at the helm of SMEs can be time-consuming and often overwhelming.
Is it the end of the line for PILONs?
Did you know that soon, PILONs could be a thing of the past? No, not Pylons as for now we’ll still need those for carrying our electricity. What we mean here are PILONs, aka Payments in Lieu of Notice or, the amount of money some employees are given in exchange for not working their notice period.
History of the PILON
Our very own tax expert, Matthew Harrison has written an article for Green Umbrella in which he explains, “Historically, where an employee didn’t work their contractual notice period they received a ‘Payment in Lieu of Notice’ or PILON as they became known. Over time, a whole series of case law developed around whether this should be taxable or not. The question that arose was ‘Is the PILON a contractual right or not?’ If so, then it would be subject to tax and national insurance under the normal earnings legislation.”
However, if not a contractual right then it could be classed as damages instead which would have tax, national insurance and structure of contract implications.
The Whole Story
Rather than us re-write the well written expertise of our colleague Matt, we’re going to direct you straight to his article to find out the rest.
Read all about how this could be the end of the line for tax free PILONs.
Cottons Sponsor Daventry Cycle Sportive
On Sunday 1st July 2018, Cottons Chartered Accountants were proud to sponsor Daventry’s Cycle Sportive, an event designed to get the entire community out on their bikes at the same time as supporting Cancer Research UK and the MacMillan Cancer Trust.
Cottons June News
It’s been a busy month here at Cottons, We’re moving forward with our app, Making Tax Digital initiatives, local partnerships & events and staff development. What’s more, we are adding new members to our team as our firm continues to grow.
Changes to Residential Property Tax
Our property tax experts have put together this definitive list of all recent changes to property taxes and given advice on how to manage them.
Cottons Partner Discusses Property Tax at Industry Event
On Tuesday 5th June, Will Smart, a Partner from our Northampton branch, attended the first Leamington Landlord and Investor event put on by Newman Property Experts.
The importance of understanding technological advances for business
Why business owners need to face up to the challenge of Mobile and Smartphone growth
Our London branch celebrates its first year!
Our accountants have been in London for one year now, here’s the story of the latest office in the Cottons Chartered Accountants network.
Emma Reid Makes Partner
It is with great pride that today we can reveal that Emma Reid, former senior accountant at our Rugby branch, has accepted a promotion to become a Partner at our firm.
Why We’re All Moving to The Cloud
In Britain, where we are often subjected to four seasons in one day, we could all be forgiven for wanting to see the back of clouds for good. However, there’s a new cloud on the scene and it’s one that business owners need to embrace…
How Open Banking Can Empower Businesses To Grow
“Open banking” is a new directive which was introduced in the UK in January. It has the potential to fundamentally change the way companies manage their finances, access capital and make strategic decisions.
Track your mileage with the Cottons App!
Do you claim for business mileage – and spend hours Googling the places you’ve visited to work out the miles you’ve covered?
Receipt Manager from Cottons
Never lose a receipt again; use the free receipt management App from proactive Cottons Accountants
Cottons. There’s an app for that!
We have launched a powerful new app to save you time and money. Here’s everything you need to know.
Happy 10th Anniversary Rugby!
Our Rugby office is 10 years old this month and we couldn’t be prouder of what has been achieved in that time.
Annual Tax on an Enveloped Dwelling
The Annual Tax on Enveloped Dwellings, ATED for short is one of the newest taxes having been introduced in 2013 and applies where companies hold residential property within a limited company or limited partnership.