With a new government in place, our tax experts provide a summary of the tax proposals in The Labour Party's political manifesto.

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.

The Annual Investment Allowance (AIA) is a generous tax relief that allows for the total amount of qualifying expenditure on plant and machinery business assets to be deducted from your profits before tax.

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. 

Key headlines from the Spring Budget 2024. 

At the start of the year, new rules were implemented requiring digital platforms that allow individuals to earn income to share their user’s information with HMRC. The list of digital platforms includes Vinted, eBay, Airbnb, Uber, Deliveroo, YouTube, Etsy, and many others. 
 

HMRC have announced that from April 2026, the Income Tax and Class 1A National Insurance Contributions (NICs) on Benefits in Kind will need to be reported and paid via payroll software rather than being submitted via annual P11D forms.
 

The Corporation Tax main rate for companies with profits in excess of £250,000 increased to 25% on 1 April 2023. A Small Profits Rate (SPR) of 19% was also introduced from the same date for companies with profits of up to £50,000, ensuring these companies continue to pay Corporation Tax at the same rate as was previously the case.

The recent update from HMRC has significant implications for the tax treatment of electric vehicle charging at residential properties for company cars. HMRC has revised its guidance regarding employers' payments for charging company-owned cars and vans at employees' homes. 

An overview of the measures announced by Channellor Jeremy Hunt in the Autumn Statement 2023 to "help grow the British economy, back British businesses and support the people who kept our country running during the pandenic". 

The Chancellor of the Exchequer, Jeremy Hunt, delivered his Spring Budget on 15 March 2023.  We take a look at some of the key announcements.

The Government recently announced important changes to the R&D scheme for companies claiming under either the Small and Medium Enterprise (SME) scheme and/or the RDEC scheme.  These changes impact on the amount of tax relief/repayments due in respect of expenditure incurred on or after 1 April 2023.

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.

Key highlights from the Chancellor's Autumn Statement. 

In preparation for the introduction of Making Tax Digital in April 2024 there are significant changes to the way profits from self-employment and partnership profit shares (including LLPs (Limited Liability Partnerships)) will be taxed from April 2023.   

As part of Making Tax Digital for VAT, VAT registrations have changed. The way businesses register for VAT changed on 1 August 2022. A new VAT Registration Service (VRS) has been created to manage the process.

Business owners who are minded to celebrate the forthcoming Christmas break with their staff are reminded that there is a tax-free allowance for the provision of an annual party or other event for the benefit of staff and their partners. The present limit to tax relief is £150 per head. If this amount is exceeded, the full cost of the benefit is taxable not the excess over £150.
 

Following on from the previously announced U-turns on Corporation Tax and the top rate of income tax, new Chancellor Jeremy Hunt has today announced plans to scrap ‘almost all’ the tax cuts announced in the ‘mini-Budget’ on 23 September.
 

HMRC’s vision to digitalise the UK tax system continues to unfold with General Partnerships that have a taxable income above £10,000 set to join Making Tax Digital (MTD) for Income Tax from April 2025. 

HMRC’s vision to digitalise the UK tax system continues to unfold with General Partnerships that have a taxable income above £10,000 set to join Making Tax Digital (MTD) for Income Tax from April 2025. 

If you’re a sole trader running a small business, it is safe to say that you’ll be incurring business expenses.

From April 2023, divorcing couples will no longer need to settle their estates within a year and face Capital Gains Tax (CGT) bills. 

Changes to the research and development (R&D) tax credits regime will see new requirements which mean that all future applications will need to be submitted online and applicants will need to pre-register claims regardless of the size of the business. 

If you pay for the fuel used in your company car you are entitled to recover the cost of the fuel – for business journeys - based on agreed Advisory Fuel Rates (AFRs), from your employer.

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.

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.
 

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.

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. 

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

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. 

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. 

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 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.

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.
 

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%.

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.

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.

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.

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

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.
 

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

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.

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. 

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.
 

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

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.
 

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.

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.

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.

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. 

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.
 

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.

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. 

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

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.

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

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. 

An overview of the tax rules around Furnished Holiday Lettings

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

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. 

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.

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. 
 

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.

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. 

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’.

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

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

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.
 

•    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
 

Important dates for your diary 

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. 

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

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

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

Important tax dates for your May diary

Important tax dates for March.

Important tax dates for March.

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

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

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.

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.

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

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

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.

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

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.

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.

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

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

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

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

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

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

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.
 

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.
 

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. 

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. 

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

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.