It has been just over three weeks since Kwasi Kwarteng’s emergency budget on 23 September, and what a three weeks it has been. This sets out the announcements made on 23 September and indicates which have been withdrawn and which remain. It is up-to-date as at 2pm on 17 October – beyond that who can say!
Company cars can be very expensive. For a petrol car in the mid-range of CO2 emissions, say 125 g/km, the car benefit is 30% of the list price of the car. If the company pays for any private fuel, the fuel benefit is 30% of £25,300. If the list price of your car is […]
Draft legislation has been published providing some good news for divorcing couples who transfer assets between themselves after separation. Married couples who are living together can transfer assets from one to the other on a nil-gain nil-loss basis which means that no capital gains tax arises on the transfer. This special rule for married couples […]
It was the best of times, it was the worst of times. The Covid pandemic brought out some of the best aspects of human nature. Communities came together, neighbours helping each other out with shopping, collecting prescriptions and making phone calls to those living alone. Front-line healthcare workers, teachers and many more went beyond our […]
A recent report from the Transport Committee has warned that urgent action is needed to consider how the tax take from car tax and fuel duty can be replaced once motorists switch to hybrid and electric vehicles. What’s the problem? Vehicle excise duty, or car tax, currently raises around £7 billion each year which goes […]
I love these foodie VAT cases that come along every now and again – Jaffa Cakes, Tunnocks Tea Cakes and Milkshake flavours to name a few – they are a great reminder of the intricacies of our VAT legislation and how this is adapting to our changing appetites! Now we have another one to add […]
The way self-employment profits are taxed is changing. We have summarised what’s happening and how you will be affected below. What happens now? At the moment, the income tax paid by sole traders and partners is based on the profits for the accounting period which ends during the relevant tax year. So, if the business […]
It’s not unusual for company owners or directors to spend company money on themselves and then pay it back later. But what are the tax consequences of this? And what happens if you want to borrow more substantial sums from the company over a longer period of time? If you owe money to your limited […]
There are some things you can do to ensure you are making the most out of all of the tax allowances available to you. Here are some of our top tips for tax planning. Avoid hitting critical ‘income thresholds’ There are three fundamental income thresholds to avoid: £50,000. This is the level at which the […]
Chancellor, Rishi Sunak announced the Spring Budget recently. It comes with lots of changes, with some welcomed more than others. Here’s our overview of the changes we can expect in the coming months. National Insurance thresholds The threshold for paying Class 4 National Insurance Contributions will be aligned with the personal allowance from July 2022. […]
If your taxable income is more than the basic rate threshold of £50,270 in 2021/22 then you will likely be paying 40% tax on some of that income (32.5% if it’s dividend income). So, how can you reduce that tax bill? 1. Make pension contributions The most effective way of saving yourself some tax […]
The Christmas period may be fun, but unfortunately, as a business owner and employer, you also have to consider the financial implications of the festive season, and how Christmas expenses can affect your tax. Here’s a few pointers on what you should consider when planning your festive celebrations this year, and what you can claim as business expenses.
The VAT Flat Rate scheme is intended to offer businesses a simpler way to calculate their VAT liability.
There was very little content in this Budget that had not been pre-announced in previous budgets or leaked over the last week or so, and certainly no big surprises or headline-grabbing tax cuts! Here’s a summary of the main announcements: Individuals 1.25% Health and Social care levy – effectively an increase in Class 1 and Class […]
Few would disagree that there is an urgent need for increased funding to support the NHS and social care going forward, and I am wholeheartedly in favour of the principle of a Health and Social Care Levy.
If you own one or more furnished holiday lets then the coronavirus pandemic will certainly have had a negative impact on bookings during 2020/21 and possibly 2021/22. It’s unlikely that the availability and occupation tests will be met, so will the property still qualify as a furnished holiday let? The good news is that yes, […]
HMRC have finally released more information about the fifth, and probably final, stage of the self-employment grant. This one is different as the amount you can claim depends on whether your turnover has dropped by more or less than 30%. What is available? Self-employed individuals will be able to claim the following: If turnover has […]
The Super-deduction was introduced by Rishi Sunak in his March 2021 budget. It can be claimed by limited companies but not by sole-traders or partnerships. What is it? The super-deduction allows limited companies to claim tax relief of 130% on the purchase of certain qualifying assets. This means that for every £100 spent, taxable profits […]
HMRC have reported that they are not able to automatically process significant numbers of self-assessment tax returns due to incorrect reporting of grants received. As a result many individuals are receiving incorrect calculations from HMRC which show too high a tax liability. So, how should you report these grants on your Return?
