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Over one million individuals use extra time to file tax returns
More than one million individuals completed their self-assessment tax return by the extended deadline at the end of February 2022. HMRC estimates 11.3m of 12.2m of the taxpayers who had to file a self-assessment tax return for the 2020/21 tax year did so by 28 February 2022. Individuals and trusts required to submit a self-assessment…
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Personal tax changes for 2022/23
Tax changes kicking in from 6 April. 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…
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Cashflow 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. There’s not much in commerce more likely to give you sleepless nights if it goes awry than cashflow, as it’s…
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Spring Statement 2022
Spring loaded: crisis solutions or half-measures? Introduction 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. Speaking at the weekend, he acknowledged concerns about price hikes and inflation, vowing to stand by people in the…
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Cryptoassets – 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. Back in 2009, investors could snap up one Bitcoin for $1. Fast forward to January 2022 and it would cost $47,000 (£34,700) per Bitcoin – down from a November 2021 peak…
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How redundancy payments are taxed
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. OVO Energy is reportedly trying to control costs by cutting 1,700 jobs as gas market prices soar to record highs, Tesco is in the…
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Ditch NICs increase to free up funds for apprentices
The Treasury is being urged to consider a late U-turn on introducing the National Insurance contributions (NICs) increase next month to boost apprenticeships. All NICs rates will increase by 1.25% from April 2022 to help fund the development of the new health-and-social-care levy, which kicks in from April 2023. The Federation of Small Businesses (FSB)…
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HMRC eyes reform of stamp taxes and multiple dwellings
Changes to reform multiple dwellings relief and how stamp duty land tax is calculated on purchases of mixed-use properties could be in the pipeline. A 12-week consultation closed last month, after HMRC sought feedback on proposals to crack down on abuse by restricting homeowners from obtaining the relief. Multiple dwellings relief is available when at…
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£50m shot in the arm for the UK’s creative businesses
Film-makers and video-game developers will be among the creative firms that can benefit from a new £50 million pot. The Department for Culture, Media and Sport (DCMS) has announced a multi-year UK global screen fund will open soon. That will provide £21m towards promoting UK films globally over the next three years, following a successful…
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Two million people missed self-assessment deadline
More than two million people missed a self-assessment tax return deadline on 31 January 2022, according to HMRC. The tax authority said more than 10.2 million returns were filed ahead of the original deadline, leaving 2.3 million still to file. Late-filers had until 28 February 2022 to file their 2020/21 tax returns online before being…
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Tax data card 2022/23
Tax Card 2022/23
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How to value your business in 2022
Is it only worth what the buyer wants to pay? 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. Having survived those choppy waters, maybe it’s time to get your business valued as thoughts drift towards an exit…
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Utilising your pension to cut inheritance tax
Pensions usually fall outside of your estate. 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. What that means is the £325,000 nil-rate band has been in place since 2009, while the 40% standard rate of tax that…
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Deadline looms for new hospitality and leisure grants
Eligible businesses in England have until the end of this month to apply for the new Omicron hospitality and leisure grants. The Treasury announced more support for hospitality, leisure and accommodation businesses before Christmas last year. Chancellor Rishi Sunak said at that time the new grant scheme was part of a new support package worth…
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Treasury’s pensions tax relief bill soars past £42bn
The costs involved with providing pensions tax relief are predicted to have increased to £42.7 billion in 2020/21, according to HMRC. Forecasts for the 2020/21 tax year showed another steady annual rise, following estimates of £41.3bn in 2019/20 and £38.2bn in 2018/19. The 2020/21 figure of £42.7bn was split between £22.9bn in income tax and…
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Omicron-hit employers can reclaim statutory sick pay
Small and medium-sized employers can reclaim money from the Treasury to cover statutory sick pay (SSP) paid to employees with COVID-19. Chancellor Rishi Sunak reintroduced the SSP rebate scheme last month, after it initially closed on 30 September 2021. It forms part of a series of measures announced to support businesses affected by the new…
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HMRC waives penalties again for late self-assessment
Anyone who missed last month’s self-assessment deadline has until 28 February 2022 to file their tax returns online before being fined. HMRC said last month that fines would not be enforced on taxpayers who missed the 2020/21 deadline at midnight on 31 January 2022. The tax authority said COVID-19 had piled added pressure on individuals…
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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. Arranging your financial affairs as tax-efficiently as possible before the start of the new tax year on 6 April 2022 is arguably more important than…
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How to extract profits out of a company…..
Once you’ve set up an incorporated business and become a director, you have to be smart about how you extract profit to avoid paying more tax than you need to. There are three main routes for a director to extract profits from their own limited company – salary, dividends and pension contributions. Usually, combining these…
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How to structure your business….
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. Assuming you’ve weighed up the pros and cons involved and decided launching a startup is right for you, one of the first things to consider is how…
