Corporation Tax

Research & Development Tax Credits

Accounting, Businesses, Corporation Tax l

R&D tax relief currently provides an enhanced deduction of 230% of qualifying R&D revenue costs. This is made up of:

  • 100% of the costs which would normally be deducted without R&D tax relief; and
    130% of those tax deductible costs.

This means that for every £100 of qualifying R&D costs, £230 is deducted from the company’s pro ts, or added to the company’s trading losses for tax purposes.

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Parking fines – a business expense?

Accounting, Businesses, Corporation Tax, Tax/VAT Cases l

parking ticketsThe rules relating to the tax treatment of parking fines have been clarified thanks to a recent first tier tax tribunal decision brought by G4S.

Though prohibited under HMRC rules, to date, many companies have treated their employees’ parking fines as a tax deductible expense. However the situation has now been confirmed with a clear precedent for HMRC to reject any future such claims.

HMRC are removing a barrier to R&D tax credits

Businesses, Corporation Tax, Growth l

Einstein_laughingSince 2000, companies have been able to claim significant tax relief for undertaking qualifying R&D, however the uptake among smaller businesses has been and remains low. This can mean reduced corporation tax, or a cash payment from HMRC.

The main barrier to claiming is thought to be concern that the R&D undertaken doesn’t qualify, leaving the business with additional professional fees to pay for an unsuccessful claim.

To overcome this, from Autumn 2015 HMRC are introducing the ability for smaller businesses who have never claimed R&D tax credits to gain advanced assurance whether an R&D project would/does qualify, ahead of doing any calculations and making the claim. This should reduce the speculative risk of making a claim for these businesses.

HMRC announces £45m to improve customer service

Businesses, Corporation Tax, National Insurance, Personal Tax, Tax/VAT Cases, VAT l

angry-Homer-phoneHMRC has announced today that it is allocating £45m to improve customer service, as it released statistics  indicating a prolonged decline in the quality of its call handling.

The allocation will pay for around 3,000 additional staff to join customer service teams, alongside around 2,000 staff who are being moved over from other parts of HMRC to help with the tax credits deadline and letters and forms.

Why is an accountant needed?

Accounting, Corporation Tax, Growth, Tax/VAT Cases, VAT l

HectorWe are often asked “why is an accountant needed?” and “how do you provide value for money?”.

In the age of computerised accounting packages and online platforms for completing returns this is a reasonable question.

A big part of the answer is our knowledge of legislation, and how we can apply our knowledge to benefit those who we work with. A great example of this has been highlighted recently by Accountingweb, where HMRC have changed an interpretation of long standing VAT legislation which could have a significant impact on businesses who don’t take alternative advice, costing them £’000’s.

Are you claiming all the available tax relief on your commercial property?

Accounting, Businesses, CGT, Corporation Tax, Investments, Personal Tax, Property, Uncategorized l

Cartoon-SkylineMost business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?

Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.

Key dates for your diary

About Us, Accounting, Businesses, Clients News, Corporation Tax, Growth, National Insurance, Payroll, Personal Tax, Tax/VAT Cases, VAT l

DiaryAs a self-employed person, or someone who is running a business every day is important. However, some dates should be in your diary to ensure that you don’t fall foul of HM Revenue & Customs or Companies House.

We’d recommend having the following dates in your business diary as reminders of tasks which need to be done.

Are you next on the taxman’s hitlist?

Accounting, Auditing, Businesses, CGT, Corporation Tax, IHT, Investments, National Insurance, Payroll, Pensions, Personal Tax, Property, Shares, Tax/VAT Cases, VAT l

Arthur DaleyTax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.

Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.

CONFIRMED – Accountants are sexy beasts

About Us, Accounting, Auditing, Budgets, Businesses, CGT, Clients News, Company Secretarial, Corporation Tax, CSR, Growth, IHT, Investments, National Insurance, Payroll, Pensions, Personal Tax, Property, Shares, Tax/VAT Cases, Uncategorized, VAT l

high-heels-and-thong-370x229According to the adulterous website, IllicitEncounters.com, accountants are the most exciting workers to go on dates with. Not because number crunching is a big turn on, but because their ‘boring’ jobs makes them more interesting in the bedroom, apparently.

HMRC New Scare Tactics Letter

About Us, Corporation Tax, Personal Tax, Tax/VAT Cases, VAT l

HMRCThe taxman has been accused of resorting to “bully boy” tactics after sending out letters which ask savers to explain why their “effective rate of tax” is lower than the national average.

HMRC says “We are issuing 1,000 letters to customers with an income of £150,000 or more who have an effective rate of tax of 22pc or less. If a customer is content that their return is accurate then they do not need to do anything.”