Like most business owners, you have probably experienced the squeeze in recruitment and retention that has been prevalent for the last 12 months or so. It’s been so significant, it has even been dubbed “The Great Resignation”
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Tax Insider May 2022
Included in this Month’s article:
- IR35 Reform Landing Period Ends
- New Law to Resolve Covid Rent Debt
- National Insurance and Dividend 1.25% Uplift Underway
- MTD for VAT rolls out to all VAT-Registered Businesses
Tax Insider April 2022
Included in this month’s article:
- Over one million individuals use extra time to file tax returns.
- Economic forecasts dampen for 2022
- House of lords raises concerns over IR35
- Government launches onlines sales tax public consultation
PERSONAL TAX CHANGES FOR 2022/23
By the time you’re reading this, the new tax year is either just about to start or has already started. Some of the changes have been public knowledge for months now and some of the rises have been anxiously awaited as the country continues to face a cost-of-living squeeze.
(more…) Read MoreCASHFLOW MANAGEMENT STRATEGIES
You don’t have to spend long running a business before you realise how important cashflow is: the balance between money coming into your company and the money going out on a weekly or monthly basis.
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Spring loaded: crisis solutions or half-measures?
Amid rising pressure to bring in significant relief measures to combat the current international emergency, Chancellor Rishi Sunak implied ahead of time that he could only do so much.
(more…) Read MoreCRYPTOASSETS: HOW ARE THEY TAXED IN 2022?
Cryptocurrencies continue to become more mainstream, and the taxman’s very aware of the gains investors have made in the last five or six years.
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IS YOUR BUSINESS PLANNING FOR REDUNDANCIES?
We may only be three months into 2022 but plenty of big employers – both here in the UK and overseas – are making employees redundant for a myriad of reasons.
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Tax Insider March 2022
Included in this months article:
- Two million people missed self-assessment deadline
- £50m shot in the arm for the UK’s creative businesses
- HMRC eyes reform of stamp taxes and multiple dwellings
- ‘Ditch NICE increase to free up funds for apprentices’
Tax Card 22/23
Year-End Tax Guide 2021/22
Throughout 2021/22, COVID-19 has continued to dominate. Millions of employees and directors on payroll were furloughed, and the self-employed continued to rely on grants available via the income support schemes.
(more…) Read MoreTax Insider February 2022
Included in this month’s article:
- HMRC waives penalties again for late self-assessment
- Omicron-hit employers can reclaim statutory sick pay
- Treasury’s pensions tax relief bill soars past £42BN
- Deadline looms for new hospitality and leisure grants
UTILISING YOUR PENSION TO CUT INHERITANCE TAX
Inheritance tax was thought to be ripe for reform in last year’s Autumn Budget but, as it happened, it was left untouched for another tax year.
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HOW TO VALUE YOUR BUSINESS IN 2022
The last year has been challenging for all of us, let alone business owners who’ve had to claim emergency support and battled hard to stay afloat.
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HOW TO EXTRACT PROFITS OUT OF YOUR COMPANY
Tax-efficient advice for limited company directors.
Believe it or not, there are more than 4.7 million limited companies registered in the UK, including the 810,316 incorporations that signed up in 2020/21.
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HOW SHOULD YOU STRUCTURE YOUR BUSINESS?
Business structures are essential for tax purposes.
If you’re looking to join the 4.3 million people in the UK who made the jump into self-employment, you might be wondering how to start your new business.
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Tax Insider January 2022
Included in this months issue:
- HMRC issues last reminder for 2020/21 personal tax returns
- One if four buy-to-let landlords ‘plan to sell up in 2022’
- More red tape for importers as new EU checks kick in
- Report sheds more light on changes to R&D regime
CONSTRUCTION INDUSTRY SCHEME
The construction industry remains one of the UK’s key sectors, which also helps to underpin the UK economy, despite experiencing the effects of the COVID-19 pandemic.
In September 2021, construction output grew by 1.3% on the previous month – placing the sector just 1% below its pre-pandemic level – and worth a decent share of UK GDP.
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MAKING TAX DIGITAL FOR INCOME TAX
Making Tax Digital for income tax (MTD for ITSA) looks certain to affect sole traders and landlords from April 2024, following the recent news of a one-year delay.
This was the latest in a long line of delays and deferrals in the rollout of MTD, which was first proposed by then-Chancellor George Osborne in late 2015.
(more…) Read MoreTax Insider December 2021
Included in this month’s article:
- Cladding tax to affect large property developers in 2022/23
- Six-month extension for COVID-19 recovery loan scheme
- Tax reporting deadline for additional property sales extends
- Budget confirms one-year delay for basis period reform
Business Tasks to Outsource
As a business owner, you will find that few things in your line of work are as precious as your time – time that would be better spent doing something other than accounting.
Many people come to us asking for help with tasks that usually result in time slipping through their fingers, because of their often onerous nature to the layman.
(more…) Read MorePension Options at the age of 55
Despite remaining complex, pensions offer you far more flexibility from the age of 55 (rising to 57 from 6 April 2028) than was once possible.
If you are approaching 55, you might be feeling a twinge of trepidation or excitement that you could soon become “a
pensioner” as this is the age at which you are allowed to access some pension savings.
Tax Insider November 2021
Included in this months article:
- Salary sacrifice could ‘dampen increased NICS costs’
- Hospitality and tourism VAT rate increases to 12.5%
- Business rates burden eases for retailers and hospitality firms
- Extension for temporary £1M annual investment allowance
Autumn Budget 2021
Biggest rates cut in three decades.
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RESIDENCE & DOMICILE AFTER BREXIT
For most UK citizens, the question of what income and gains should be included on their tax return is easily answered because they are both UK domiciled and UK tax resident.
Anyone domiciled and resident in the UK will need to report their worldwide income and capital gains on their return. However, what happens if you are either non-UK domiciled (non-dom) but UK resident, or UK domiciled but non-UK resident?
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2020/21 INCOME TAX RETURNS & THE SEISS
A chunk of time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic.
The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second grant of up to a total of £6,570 and a third grant, worth up to £7,500 in total.
(more…) Read MoreTax Insider October 2021
Included in this month’s article:
- Curtain comes down on stamp duty land tax holiday
- Government launches new trust registration service
- The rise of electric vehicles could create £30BN tax hole
- National insurance and dividends tax rates to rise 1.25% in 2022/23
ACCOUNTING FOR CHARITIES & NON-PROFITS
Anyone who’s involved in operating a charity knows how it differs from running a business, both in terms of motives
and objectives.
HMRC treats non-profit organisations and charities very differently to businesses, offering some unique tax breaks in the process.
(more…) Read MoreBASIS PERIOD RULES IN LINE FOR REFORM
Unincorporated businesses could be about to see significant changes to the ways in which they are taxed, following the launch of a Government consultation.
The Government plans to reform the basis period rules in a bid to simplify how unincorporated businesses, such as sole traders and business partnerships, allocate trading profits to tax years for inclusion on their self-assessment returns.
(more…) Read MoreTax Insider September 2021
Included in this month’s article:
- Deadline approaches for fifth and final self-employed grant
- National Insurance contribution rates ‘poised to increase’
- 1 in 5 UK employers consider making redundancies
- Capital gains tax receipts climb 3% to record-high
STARTING A NEW BUSINESS AFTER COVID-19
Not much can stop determined entrepreneurs from building a new business from the ground up, even during such challenging times as a COVID-19 or its ensuing fallout.
The pandemic has proven a huge challenge for businesses, with 396,155 UK firms closing in 2020 according to the Office for National Statistics, as business owners struggled to cope with restrictions and lockdowns.
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TAKING CHARGE OF PLANNING YOUR ESTATE
Soaring house prices coupled with certain thresholds being frozen in the most recent Budget have the potential to drag more estates into the inheritance tax net over the coming years.
Back in March 2021, Chancellor Rishi Sunak confirmed the main inheritance tax thresholds will remain frozen at their 2021/22 levels “up to and including 2025/26”.
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August 2021 Tax insider
Included in this month’s article:
- Lower stamp duty land tax threshold in place until October.
- Employer costs increase as furlough scheme winds down.
- Treasury seeks feedback on business rates revaluations.
- Pensions tex traps catch out thousands more savers.
Tax Planning for Residential Landlords
After a challenging year for the UK’s residential landlords, you might have read about improvements to the buy-to-let mortgage market in recent weeks.
In the three months to 31 May 2021, the average interest rates for residential landlords had declined. A two-year fixed-rate buy-to-let mortgage fell 0.10 percentage points to 2.95%, while a five-year fixed dropped 0.11 percentage points to 3.30%.
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The Pros and Cons of a Company Electric Car
Despite the potentially high personal tax charge, many employees still enjoy and prefer the convenience of being
offered the use of a company car by their employer.
Those employers familiar with the benefit-in-kind tax rules will
be aware the tax impact on the employee is much lower for those that choose lower emission cars.
Tax Insider July 2021
Included in this months article:
- Sweeping VAT reforms in the EU will affect the UK’s online retailers
- Families hit with big bills after believing gifts would not be taxed
- OTS considers bringing the end of the tax year forward
- UK tax incentive ‘fails to deliver extra R&D spending’
Making Tax Digital for the Self Employed
The way that most self-employed taxpayers report their business profits to HMRC is set to change in April 2023 under the Making Tax Digital (MTD) for business regime. The changes to date have applied only to businesses that are VAT registered.
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THE BASICS OF VAT FOR UK BUSINESSES
VAT is a business tax on the supply of goods and services. It is charged at varying rates depending on what is being supplied, who it is being supplied to and where it is being supplied to.
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COSTS YOU CAN RECLAIM ON THE BUSINESS
If you’re self-employed, your business will rack up various running costs throughout 2021/22. Some of those you’re able to deduct as allowable expenses.
By deducting these allowable expenses as part of calculating your business’s taxable profits, it’s possible for us to reduce your income tax bill in the process.
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June 2021 Tax Insider
Included in this month’s article:
- Deadline approaches for SME Brexit support grant
- Employers told to issue childcare voucher reminder
- Directors bank mandatory climate credential disclosure plan
- HMRC seeks to remove VAT repayment Supplement
Extending the term of your Bounce Back loans using Pay as You Grow options
We have just past the anniversary of when Bounce back loans started dropping into everyone bank accounts.
You will have received notifications from your bank over the last few months saying that you will be able to make changes to the loan to assist with cashflow.
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THE PENSIONS LIFETIME ALLOWANCE
Traditionally, most people get nowhere near breaching the
pensions lifetime allowance, but that’s likely to change
over the next five years.
The lifetime pensions allowance is currently £1,073,100.
(more…) Read MoreTAX IMPLICATIONS OF FURNISHED HOLIDAY LETS
Owning and letting out a holiday home, otherwise known as a furnished holiday let (FHL), has always been a popular way of investing and earning income.
Not only do FHLs enjoy many tax advantages over normal residential let properties, owners have an asset which they can use for holidays while it largely pays for itself.
(more…) Read MoreMay 2021 Tax Insider
Included in this month’s article:
- Super-deduction tempts 51% of manufacturers to invest
- VAT-registered firms start using digital links under MTD
- HMRC rolls out new measures to ‘Tackle CIS abuse’
- Workplace pension contributions bounce back after slump
Domestic Reverse Charge for VAT in the building industry
There are some changes to the way VAT operates within areas of the building and construction sector from 1st March 2021. These changes apply to businesses supplying other businesses with construction services…
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Tax Card 2021/22
Tax Card 2021/22
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THE FUTURE OF UK CORPORATION TAX
For the past 40 years or so, corporate tax rates have decreased steadily around the world. In 1980, the global average stood at around 40%, but by the end of 2020 it was closer to 24% as various countries aimed to encourage business investment.
(more…) Read MorePERSONAL TAX PLANNING FOR 2021/22
If there’s one thing to take away from Spring Budget 2021, it’s taking charge of your personal finances is going to be increasingly important over the next five years.
(more…) Read MoreApril 2021 Tax Insider
Included in this month’s article:
- Three month extension for business rates holiday in England
- New recovery loan scheme replaces previous COVID-19 loans
- VAT-registration and deregistration thresholds frozen until 2024/25
- Treasury issues guidance on the final two self-employed grants
Spring Budget 2021
“It’s going to take this country a long time to recover from this extraordinary economic situation, but we will recover.”
Chancellor Rishi Sunak