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business tax

Tax year planning for 2024/25

It is always a good idea to review tax planning opportunities to ensure allowances are maximised and your planning is in line with current legislation, particularly this year given various changes now coming into force. Our guide is a brief reminder of the key points to be addressed when tax year planning for 2024/25.

Furnished holiday lets: what's changing?

In the 2024 Spring Budget, the Chancellor announced the abolition of the tax-advantageous regime for furnished holiday lets from April 2025. There is a limited window of opportunity for property owners to review their property letting activity to take advantage of the key tax benefits available for qualifying rentals. 

Autumn Statement 2022: Key Highlights

Key Highlights from the Chancellor’s Autumn Statement 2022:
 
Personal taxes
 
Income tax
 
It was confirmed that the current personal allowance (£12,570) and the thresholds for the upper limit of the basic rate tax band (£50,270) and the amount at which the personal allowance starts to taper away (£100,000) will all remain unchanged until 5 April 2028.

The Spring Statement: As it Happened

The Chancellor, Rishi Sunak, has delivered his Spring Statement to the House of Commons against a backdrop of a growing cost of living crisis. The Chancellor also stressed that, apart from the untold human suffering, the Russian invasion of Ukraine is creating further uncertainty in the domestic and global economy, particularly in relation to energy markets and the food supply-chain.

Tax benefits on electric cars - company cars

As most drivers of a company car will be aware, if you have any private use of the vehicle this will result in a significant Income Tax charge. This charge is the way that HMRC levy tax on the deemed value of the benefit of having the use of a company car, and the more expensive the car is and the higher the CO2 footprint of the car, the higher the Income Tax charge will be.

MAKING TAX DIGITAL FOR VAT REGISTERED BUSINESSES COMPULSORY FROM APRIL 2022

Since Making Tax Digital came into force in April 2019, VAT-registered businesses in the UK above the £85,000 registration threshold are required to submit their VAT returns using ‘functional compatible software’ and store their VAT accounting records digitally. This is part of the government’s plans to make the tax system more resilient and effective, to boost business productivity and to support taxpayers.
 

Tax relief rules on business and staff entertainment

Expenditure on business entertainment is not allowable as a deduction against profits. Nor may a deduction be made for any expenditure which is incidental to business entertainment. Spending on rewarding staff for good work or to raise morale is classed as employee entertainment which will be eligible for tax relief and you will be able to reclaim VAT on. 

Taking goods abroad to sell?

You must declare goods that you take with you to sell outside the UK (e.g. if they are in your baggage or in a private vehicle). There is a different process if you take goods abroad temporarily (e.g. samples for a trade fair) or use a courier or freight forwarder.
 

Tax Day 2021

23 March 2021 marked the UK’s first Tax Day, as the government published consultation documents, calls for evidence, and other documents relating to the future shape of the UK tax regime.

WHAT IS IR35 AND WHAT DOES IT MEAN?

From 6 April 2021, important changes to the IR35 rules will begin to apply to medium and large private
sector organisations. IR35 are the rules concerning “off-payroll workers” – i.e. individuals who work for a company via their own ‘personal service company’.

What is a reasonable excuse?

HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.

What is a reasonable excuse?

HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.

Tax-free childcare support expanded

Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare. 

According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017. 

Tax-free childcare support expanded

Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare. 

According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017.