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Business Tax

Plastic Packaging Tax: what do you need to know?

From 1 April 2022, the UK government introduced a new Plastic Packaging Tax (PPT) at a rate of £200 per metric tonne to incentivise businesses to increase their use of recycled plastic and combat the level of single use plastic heading towards landfill or incineration.

Utilising the environmental tax savings on offer to your business

With sustainability at the forefront of the political agenda, businesses are facing increasing pressure to reduce their carbon footprint and become more environmentally conscious. Aside from the obvious benefits to the planet, going green can also provide considerable tax savings for businesses.  

What type of VAT relief will apply to your office to residential conversion?

Empty office spaces are being turned into other buildings, which will often in turn change the property’s class and the VAT that should be applied.

Will your director and shareholder dividends be hit by the NIC increase?

Shareholder directors of owner-managed businesses normally take a minimum salary and any balance of remuneration as dividends (distribution of company profits). Historically, dividend have been taxed as unearned income and this tends to reduce National Insurance Contributions (NIC), and in some cases income tax. 

What are the rules when using a private vehicle for business journeys?

Employers can pay employees a fixed rate per mile to cover the costs of using their own vehicles on company business.

How will the basis period reform affect your business cash flow from the 2024-25 tax year?

The new rules will not change the accounting period of the business, however the tax position will move from a current year basis to a tax year basis. This will mean that  business profits will be calculated for the tax year rather than for the period of account ending in the tax year. 

Will your unincorporated business be affected for basis period changes in 2023/24 – Transitional year?

The basis period rules for unincorporated businesses are being changed from the 6 April 2024, with a transitional year of the 2023/24 tax year.

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.

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.

Spring Statement 2022: Key headlines

Against a backdrop of rising prices and an OBR inflation prediction of 7.4% this year, the Chancellor’s Spring Statement announced a number of measures aimed at helping households and businesses.  

What is the corporation tax increase from April 2023?

The current Corporation tax rate of 19% generally applies to all companies whatever their size. From 1 April 2023, this rate will cease to apply and will be replaced by variable rates ranging from 19% to 25%.

What are the MTD tax return changes from 2023/24?

In preparation for the introduction of Making Tax Digital for Income Tax Self-Assessment, the basis period rules for unincorporated businesses are being abolished. In its place, unincorporated businesses will be assessed on the profits actually earned in the tax year.

Have you used your tax-free capital gains exemption?

You and each member of your family is entitled to make tax-free capital gains of up to £12,300 in the 2021-22 tax year. If you have made no disposals that would trigger a capital gain in 2021-22.

How will the National Insurance increase affect your business?

This is a reminder that from April 2022, National Insurance contributions are set to rise through the introduction of a 1.25% Health and Social Care Tax Levy. Dividends rates are also set to increase by the same amount.

Making Tax Digital for VAT registered businesses compulsory from April 2022

As of 1st April 2022, all VAT – registered businesses will be required to comply with the MTD regime for their VAT accounting.

Tax changes on second homes and holiday lets

From April 2023, second homeowners will be required to provide proof that their property is an operating holiday let to qualify for small business rates relief.  

There is still time to consider tax planning options for the 2021-22 tax year

With rare exceptions, once the end of the tax year has passed, tax planning options to reduce tax liabilities are no longer possible.

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.

Scam warning: Bogus HMRC letters

We have recently become aware of a letter purporting to be from HMRC regarding Corporation Tax payments asking clients to call a fake HMRC contact number and set up a payment plan. 

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.  

Autumn Budget 2021: Key points

A roundup of the key points announced by Chancellor Rishi Sunak in the 2021 Autumn Budget. 

Almost £2.5 million claimed for East Midlands clients in R&D

Moore East Midlands have helped local businesses recover a massive £2,477,143.44 in tax savings on Research and Development (R&D) spending from January 2019 to June 2021.  

What are the tax collection options?

If you do not pay your tax bill on time and cannot make an alternative arrangement to pay, HMRC can take ‘enforcement action’ to recover any tax you owe.

Information on the tax system when becoming self-employed

If you decide to become self employed, it is vital that you register with HMRC by 5th October following the end of the tax year in which you became self employed.  If you do not follow this process, you may be liable to a penalty based on the tax that is due to HMRC.

How the Margin Scheme accounts for VAT when selling second-hand vehicles

If you run a business that sells second-hand vehicles and you have not been charged VAT when purchasing the vehicles, using the Margin Scheme could potentially save you some money.

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.  

Changes To EU VAT Rules From 1 July 2021

The EU’s e-commerce package will introduce changes from 1 July 2021, relating to the movement of goods from Northern Ireland to the EU as well as imports of low value goods into the EU or Northern Ireland.

Covid-19 and benefits in kind – Matters to consider when reporting expenses and benfits in kind on P11Ds for 2020/21

There are many expenses and benefits in kind which will need to be reported, however there are some exemptions for expenses associated with working from home. 

Benefits in Kind - Electric Cars

All zero emission cars (i.e. fully electric) will have no Benefit in Kind (BIK) for 2020-2021.

Prepare benefit in kind returns to HMRC

Employers that provide any form of taxable benefit to clients will need to prepare and file P11D returns to HMRC. The deadline to file your returns is the 6 July 2021.

TAX DIARY JUNE & JULY 2021

Important dates for your tax diary in June and July 2021.

Tax relief on profits for creators of literary or artistic works

A special tax relief is available for creators of literary or artistic works. This relief will mean creators can claim to add together their profits for 2 years and be taxable on the average of those profits if certain conditions are met. 

Understand the tax rules around Furnished Holiday Lettings

Our latest factsheet shows the benefits and what criteria you need to qualify as an FHL.

TAX DIARY MAY & JUNE 2021

Important dates for your tax diary in May and June 2021.

New claims required for working from home tax relief

Employees who work from home due to the COVID-19 pandemic will need to make a new claim for the 2021/22 tax year so that they can continue to claim tax relief where they have not been reimbursed by employers. 

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.

New R&D Tax Credit Cap imposed for PAYE

The PAYE cap, which was first mentioned in the 2018 Budget, is finally becoming law for accounting periods beginning on or after 1 April 2021.   

Changes To Capital Allowances From April 2021

The Capital Allowances Act has now been amended to extend the 100% first year allowances for zero-emission cars, zero-emission goods vehicles, and equipment for gas refuelling stations by four years, until 31 March 2025.

Are you aware of the tax implications when taking on a second job?

Have you thought about taking on an extra job during the COVID – 19 pandemic? Perhaps you have been put on furlough and have spent time thinking of innovative ways to start a side business, to pass some time and inevitably save up some money, for when life returns to normal. 

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’.

Budget 2021: Super deductions - a new temporary tax relief for businesses

The Chancellor introduced a new ‘super-deduction’ to be used for the first time in the UK, in the Budget on 3rd March 2021.

Budget 2021 Key highlights

A roundup of the key measures announced by the Chancellor in the 2021 Budget. 

HMRC ARE CONTINUING TO STRESS NO EXTENSION TO SELF ASSESSMENT DEADLINE (BUT ARE THEY SECRETLY YIELDING TO PRESSURE?)

HMRC have issued a letter addressed to the main accountancy bodies on the extension of the filing deadline and waiving of late filing penalties after 31 January 2021.  

83% of Owner Managed Businesses think tax increases should be delayed until recovery well underway

•    Early tax rises would hit business and consumer sentiment •    Businesses also want assistance targeted at those that need it – more means checking and anti-fraud checks  

COVID-19: Company cars and lockdown

As we enter another week of coronavirus lockdown HMRC have confirmed that company car drivers must still suffer a Benefit-in-Kind tax charge where they have access to private use of their vehicles.   We look at the implications for company car drivers. 

Working from home: what Directors can claim for

We look at the rules around what the Directors of owner managed businesses can claim for when their employees are working from home. 

Protecting cash flow - tax payments

It is unlikely that our businesses will be unaffected by the inevitable slow-down in economic activity as the Coronavirus outbreak starts to bite.

Protecting cash flow - tax payments

It is unlikely that our businesses will be unaffected by the inevitable slow-down in economic activity as the Coronavirus outbreak starts to bite.

Tax Diary May 2019

Important tax dates for your May diary

Tax Diary March 2019

Important tax dates for March.

Tax Diary March 2019

Important tax dates for March.

Would a digital services tax do more bad than good?

In the autumn budget, Chancellor of the Exchequer, Philip Hammond proposed the UK implement a ‘digital services tax’ on sales by technology giants. 

Would a digital services tax do more bad than good?

In the autumn budget, Chancellor of the Exchequer, Philip Hammond proposed the UK implement a ‘digital services tax’ on sales by technology giants. 

January is here - completing your self assessment tax return

As the year draws to a close, the thought of your tax return is there, at the back of your mind. But with so much time before the deadline, you decide not to worry about it for now.

January is here - completing your self assessment tax return

As the year draws to a close, the thought of your tax return is there, at the back of your mind. But with so much time before the deadline, you decide not to worry about it for now.

Tax diary for November 2018

November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month. 

Tax diary for November 2018

November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month. 

Budget 2018 overview: Austerity is coming to an end, but discipline will remain

With the Government already having pledged to end austerity, the Chancellor had to loosen the purse strings in his Autumn Budget. Fortunately, better than expected growth and borrowing forecasts gave scope for a few extra voter-pleasing announcements.

Recent tribunal triggers debate over capital allowances

Commercial property firms are being urged to ensure their capital allowance provisions are in order after a tribunal sparked a debate over claims.

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.

Is your business ready for the April making tax digital deadline?

In less than a year all businesses that file VAT returns will have to file these online or through reliable accountancy software. From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:

Is your business ready for the April making tax digital deadline?

In less than a year all businesses that file VAT returns will have to file these online or through reliable accountancy software. From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:

Tax diary August

1 August 2018 - Due date for Corporation Tax due for the year ended 31 October 2017.

Tax diary August

1 August 2018 - Due date for Corporation Tax due for the year ended 31 October 2017.

Self employed tax bills

Whether you pay income tax or National Insurance, the effect on your cash flow is the same.

Self employed tax bills

Whether you pay income tax or National Insurance, the effect on your cash flow is the same.

Tax Diary May

May is a very busy time in the tax calendar, with critical filing dates.

Tax Diary May

May is a very busy time in the tax calendar, with critical filing dates.

Isle of Wight residents hit with fake HMRC telephone scam

A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.  

Isle of Wight residents hit with fake HMRC telephone scam

A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.  

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. 

Can I reclaim the VAT on a new car used for business?

VAT specialist Andy Hancock looks at the rules around claiming VAT on pool cars.

VAT flat rate scheme changes worth careful consideration

Changes to the VAT flat rate scheme announced in the Autumn Statement could mean that the scheme is no longer the right option for your business. Tax Advisor Tim Woodgates looks at what the changes mean. 

Tax planning using the new Lifetime ISA

Budget 2016 announced a new 'Lifetime ISA' that will be available to those aged between 18 and 40 from 6 April 2017.

Tax planning using the new Lifetime ISA

Budget 2016 announced a new 'Lifetime ISA' that will be available to those aged between 18 and 40 from 6 April 2017.

Senior Accounting Officer regime: Making it work for you

HMRC’s Senior Accounting Officer (SAO) regime for large UK corporates may look like just another compliance burden. But you can look at it another way – as a powerful reference point and information source for minimising your tax risk.