The rate of corporation tax looks set to drift downwards to 19% and then to 18% over the next couple of years, making incorporation look increasingly attractive for many small businesses. Apart from the saving on tax, there is also a substantial saving on Class 4 National Insurance. Against this, a new tax on dividends is being proposed, perhaps to “compensate” the State for the loss of Class 4 NIC. It is a little early to judge where this is heading, but we will remind you about dividends.

 
If you claim tax credits, then you should have received your Renewal Pack at the end of June. The deadline for renewing a claim for tax credits is 31 July 2015. Read what your Renewal Pack has to say.

 
Sole traders and partnerships may need to pay a second installment of income tax for the year ended 5 April 2015 by 31 July 2015, which is the end of this month. You should have received a payslip and envelope through the post by now.

 
Employers should be aware that if the form P11D indicates that Class 1A National Insurance Contributions are due, then these should be paid by 19 July 2015 if settled by cheque, or by 22 July if settled electronically.

 
Sometimes when you are an employer, you might have happened to have made no wage or salary payments at all for the PAYE month. If you have not made any payments from 6 June to 5 July, then you must submit electronically an Employer Payment Summary as a NIL return by July 19th. This is too easy to overlook.

 
Construction Industry Scheme returns for the period from 6 June 2015 to 5 July 2015 should be submitted online by 19 July 2015. This includes NIL returns.

 
Employers must make First Quarter payments of PAYE and NICs by 19th July 2015 if settled by cheque. If you pay electronically, then you have until 22nd July to make the payment. Tax retained under the Construction Industry Scheme must also be paid by the same date.

 
George Osborne is planning to raise the inheritance tax threshold from £650,000 to £1,000,000 so a family home worth up to £1,000,000 can be inherited tax-free. In Cumbria, a house worth £1,000,000 is likely to be quite sizeable, but in the London area, it could still be a modest house. We could have a situation where a child lives at home caring for elderly parents, the parents die, and the child is then faced with a substantial inheritance tax bill on a house which is no mansion. It is as well to see the rules change to give some relief on this.