04 Apr 2022

National Insurance Contributions (NICs)

Despite lobbying to delay the upcoming 1.25% increase in NICs payable by employees, employers and the self-employed, the government has decided to go ahead as planned from April 2022, to provide additional funds for health and social care.

04 Mar 2022

Missing out on help with childcare costs?

The government are concerned about the lack of take up of tax-free childcare accounts, with HMRC estimating that only about 25% of families eligible for the scheme had joined.

04 Mar 2022

Changes to accounting for VAT on imports

HMRC have recently updated their guidance for VAT registered importers. These traders must account for postponed import VAT on their VAT returns for the accounting period which covers the date they imported the goods. The normal rules apply for what VAT can be reclaimed as input tax and the trader’s monthly statement will contain the information to support their claim.

04 Mar 2022

Consider a salary sacrifice scheme

Another way that you could avoid the personal allowance trap and also reduce income tax and national insurance would be to agree with your employer to sacrifice some of your salary in exchange for a tax free, or low tax benefits in kind.

04 Mar 2022

Don’t lose your 2021/22 personal allowance

For every £2 that your adjusted net income exceeds £100,000 the £12,570 personal allowance is reduced by £1.

04 Mar 2022

2022/23 National Insurance bands

Unless the Chancellor makes an announcement to the contrary on 23 March, which is very unlikely, the rates of National Insurance Contributions for workers and employers increase by 1.25% from 6 April 2022.

04 Mar 2022

Buy new equipment before 6 April?

Your business year end, not 5 April, is relevant for capital allowances purposes.

04 Mar 2022

VAT rates for hospitality sector due to increase from 1 April 2022

Early in the COVID-19 pandemic, the Chancellor reduced the rates of VAT for the leisure and hospitality sector to just 5%.

01 Feb 2022

Planning to sell your business in 2022?

Now that the economy is starting to recover, this could be a good time to think about selling your business.

01 Feb 2022

HMRC have put back Tax Return deadline

Normally self-assessment tax returns need to submitted by 31 January, otherwise there is an automatic £100 late filing penalty.

01 Feb 2022

Will there be a mini budget on 23 March?

Whilst most of us were wrapping our Christmas presents on 23 December 2021, the Chancellor of the Exchequer, Rishi Sunak, commissioned the Office for Budget Responsibility (OBR) to produce an economic and fiscal forecast for Wednesday 23 March 2022.

26 Jan 2022

Prepare your business for Making Tax Digital (MTD) for VAT

Making Tax Digital for VAT becomes mandatory for all VAT registered businesses from 1 April 2022.

13 Jan 2022

£1 Million Annual Investment Allowance still available

Second hand plant and machinery does not qualify for the 130% super-deduction but would still qualify for the 100% Annual Investment Allowance (AIA).

13 Jan 2022

New Year, New planning ideas

At this time of year, we think about New Year’s resolutions. It is also a good time to start planning your tax affairs before the end of the tax year on 5th April.

13 Jan 2022

130% Super-deduction for investing in new plant continues

Many businesses may have been too short of cash to take advantage of the new super-deduction for investing in new plant in 2021 but may be more confident about investing in 2022.

13 Jan 2022

New Year, New Opportunities

In his Spring 2021 Budget the Chancellor announced that there would be 8 “Freeports” in England with generous tax breaks to encourage businesses to set up and invest in those areas. The devolved governments will also be announcing locations in Scotland, Wales and Northern Ireland in due course.

08 Dec 2021

Let’s have a real Christmas party this year!

Last year many businesses put on a “virtual” Christmas party event and HMRC agreed that would be acceptable in order for there to be no taxable benefit for the employees involved.

08 Dec 2021

Christmas is the time for giving

Many were expecting the chancellor to announce changes to inheritance tax (IHT) in his Autumn Budget, however, like capital gains tax (CGT), the rules have remained broadly the same as last year.

08 Dec 2021

Christmas gifts of up to £50 per employee is also tax free

Remember that certain gifts to staff at Christmas are also tax free if structured correctly. Employers are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free.

08 Dec 2021

Advisory fuel rate for company cars

HMRC have again increased the advisory fuel rates that apply for the reimbursement of employees' private fuel for their company cars.

19 Nov 2021

More time to report and pay CGT on residential property disposal

Many were expecting big changes to capital gains tax in the Autumn Budget, particularly as the Office of Tax Simplification (OTS) had suggested that CGT rates should be aligned with income tax rates.

21 Oct 2021

HMRC support with childcare costs

With more employees going back to work after the end of CJRS furlough support, they need to start thinking about childcare if they have children.

21 Oct 2021

MTD for income tax postponed to 2024/25

Having listened to stakeholder feedback from businesses and the accounting profession, the government have announced that they will introduce Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) a year later than planned, in the tax year beginning in April 2024.

21 Oct 2021

Advisory fuel rates for company cars

As the result in recent increases in petrol and diesel prices HMRC have increased the advisory fuel rates that apply for the reimbursement of employees' private fuel for their company cars. The same rates apply when the employer reimburses employees for fuel used for business journeys in their company car.

21 Oct 2021

1.25% Increase in NICs and TAX on dividends to fund health and social care

The Prime Minister announced on 7th September that the government will introduce a new 1.25% Levy to provide an extra £12 bn a year to support the NHS and social care.

06 Sep 2021

Big tax bills for the self-employed in 2022/23

Last month we mentioned that draft legislation has been published to change the basis periods for the assessment of self-employed profits to coincide with the tax year. The proposed new rules provide that from 2023/24 onwards profits or losses will be apportioned to tax years where the period of account does not coincide with the tax year. This is intended to coincide with the start of Making Tax Digital for income tax.

06 Sep 2021

Accounting for import VAT on your VAT Return

HMRC have recently updated their guidance on accounting for VAT on goods imported from outside the UK which, since Brexit, includes the European Union.

06 Sep 2021

5% rate on tourism and hospitality ends 30 September

The temporary 5% VAT rate that has applied to supplies made in the tourism and hospitality sector since the start of the pandemic comes to an end at the end of September. The rate then increases to 12.5% from 1 October until 31 March 2022 when it reverts to the standard rate.

06 Sep 2021

September is the last month for CJRS “Furlough” grants

The Government are pulling the plug on support to employers for furloughed staff at the end of September as they anticipate that the economy will be back to normal by October. The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875.

06 Sep 2021

Notify option to tax land and buildings within 30 days

If you are notifying HMRC of a decision to opt to tax land and buildings, you are normally required to notify HMRC within 30 days. The 30 day deadline was temporarily extended to 90 days to help businesses and agents during the pandemic, but that temporary extension has now ended for decisions made from 1 August 2021 onwards.

04 Aug 2021

Off-payroll working, will HMRC accept CEST result?

Since 6 April 2021 large and medium-sized organisations have had to determine whether or not a worker supplying their services via their own personal service company would be treated as an employee if directly engaged.

04 Aug 2021

MTD coming soon for income tax

VAT registered business making taxable supplies above the £85,000 registration threshold have been grappling with Making Tax Digital (MTD) since April 2019. The next roll-out will be the introduction of MTD for income tax which is scheduled to start in April 2023.

04 Aug 2021

Guidance on SEISS turnover test issued by HMRC

The fifth (and final) SEISS grant will be available for the self-employed to claim towards the end of July. HMRC will contact those traders that may be eligible with their claim date.

04 Aug 2021

Company loss relief can be claimed early

Where a company makes a trading loss of no more than £200,000 in an accounting period it is now possible to claim relief for that loss even though the corporation tax return CT600 has not been submitted.

07 Jul 2021

Please let us have details of your SEISS grants for your 2020/21 tax return

As you are probably aware tax agents were not able to claim SEISS grants on their client’s behalf, and we do not currently have access to the amounts you have claimed.

07 Jul 2021

Pension contribution is tax efficient for both employee and employer

Pension contributions to approved pension funds on behalf of employees and directors continue to be a tax-free benefit provided the annual input limit is not breached.

07 Jul 2021

HMRC warning not to use unfunded pension arrangements

HMRC are currently attacking a marketed tax avoidance scheme using unfunded pension arrangements to avoid Corporation Tax, Income Tax and National Insurance contributions.

07 Jul 2021

Furlough grant reduces to 70% for July

For the month of July the CJRS Furlough grant support from the government via HMRC reduces to 70% of the employee’s usual pay for hours not worked.

07 Jul 2021

Fifth self-employed income support grant to be paid in July

The fifth (and final) SEISS grant will be available for the self-employed to claim towards the end of July.

07 Jul 2021

Correcting errors in earlier furlough claims

The numerous changes in the method of calculating CJRS furlough grants will no doubt have resulted in errors by some employers.

07 Jul 2021

Tax free childcare account subsidises summer camp costs

If you have children under 12 who attend a nursery, after school club, playscheme, childminder or you are considering sending them to a summer camp you should think about setting up a tax-free childcare account.

28 May 2021

Beware mini-umbrella company fraud

HMRC are urging businesses to look out for the use of mini-umbrella companies (MUCs) to pay contractors supplying their labour via agencies and other intermediaries. Businesses need to be aware of the financial and reputational risks of such entities in their labour supply chain and carry out due diligence to minimise those risks.

28 May 2021

Check that your shares qualify for CGT business asset disposal relief

A recent case before the tax tribunal has confirmed that all of a company’s shares are ordinary shares except those that carry a fixed rate of return.

28 May 2021

Car benefit reduced where unavailable

P11d forms reporting benefits in kind provided to employees and directors need to be submitted to HMRC by 6 July. Where a company car is “unavailable” for private use for 30 or more consecutive days the benefit is proportionately reduced.

18 May 2021

Details of latest CJRS "FURLOUGH" Grants

The fourth version of the CJRS “furlough” grant scheme starts on 1 May 2021 and will run until 30 September with employees affected continuing to be supported such that they are entitled to be paid at least 80% of their “usual pay” subject to a limit of £2,500 a month for hours not worked.

18 May 2021

Associated companies count for new corporation tax rates

A 25% rate of corporation tax will apply to all of a company’s profits if they exceed £250,000 from 1 April 2023. The 19% rate will continue to apply where profits are below £50,000. The marginal rate that applies between those limits will be 26.5%.

18 May 2021

Details of fourth self-employed income support grant

Like the CJRS scheme for employers the Self-Employed Income Support Scheme (SEISS) has been extended to September 2021and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to September 2021.

18 May 2021

Making Tax Digital extended to more businesses

Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital (MTD) rules. Those rules require the business to keep digital business records and send VAT returns using MTD-compatible software.

08 Apr 2021

New enhanced loss relief rules may result in extra tax refunds

In the March Budget it was announced that the normal one year carry back for trading losses would be extended to three years. This means that many businesses that have made losses during the COVID-19 pandemic may be able to obtain a repayment of tax paid in that three-year period. This enhanced carry back applies to unincorporated businesses as well as limited companies and the details are set out in the latest Finance Bill.

08 Apr 2021

New personal service company rules start this month

The "off-payroll" working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021.

08 Apr 2021

Uber drivers are workers not self employed

The Supreme Court has ruled that drivers for the ride hailing App Uber are workers not self-employed individuals and hence are entitled to holiday pay, pension rights and the right to be paid the national minimum wage.

08 Apr 2021

More details on the new super-deduction for equipment

In the Budget on 3rd March the Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023.

29 Mar 2021

Don’t Lose Your 2020/21 Personal Allowance

For every £2 that your adjusted net income exceeds £100,000 the £12,500 personal allowance is reduced by £1.

29 Mar 2021

VAT Rules For Construction Sector Started

The new “reverse charge” system of VAT accounting affects sub- contractors supplying their services to main contractors in the construction sector.

29 Mar 2021

“Off-Payroll” Working Rules

Where large or medium-sized organisations are paying workers via personal service companies (PSC) or agencies they will need to operate new procedures from 6 April 2021.

29 Mar 2021

2021/22 National Insurance Bands

The thresholds for employee and employer national insurance contributions (NICs) have been increased by £1 a week for the 2021/22 tax year. Employees will be liable to 12% NICs between £184 and £967 a week (£50,270 a year). Employer contributions will start at £170 a week.

29 Mar 2021

Advisory Fuel Rate For Company Cars

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 March 2021.

23 Feb 2021

European property owners face higher tax bills

Now that the UK has finally left the EU some taxpayers will start to see additional tax costs. One example is where UK residents own holiday homes in EU countries that they rent out for part of the year.

23 Feb 2021

Get ready for new off-payroll working rules (IR35)

This time last year businesses were preparing for important changes to the rules where workers supply their services via their own personal service companies. The start date was then deferred from 6 April 2020 to 6 April 2021.

08 Feb 2021

Payment of your deferred VAT

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you will need to pay the deferred VAT in full on or before 31 March 2021.

01 Feb 2021

Time to review your will?

Top of the to do list for many individuals is to make or update their will. Many think this is something to leave until later in life, but it is important to get things in place once property is acquired or when children come along.