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Report sheds more light on changes to R&D regime
More details have emerged on upcoming changes to the UK’s research and development (R&D) regime, which will take effect from April 2023. The Treasury published a report on R&D following last year’s Autumn Budget, in which Chancellor Rishi Sunak announced several new measures. “If we want greater private-sector innovation, we need to make our R&D…
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More red tape for importers as new EU checks kick in
Most UK importers were unprepared for the recent introduction of import controls on EU goods, according to a report from the Federation of Small Businesses (FSB). Full customs declarations and controls took effect from 1 January 2022, although safety and security declarations are not required until 1 July 2022. Before 1 January 2022, full customs…
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One in four buy-to-let landlords ‘plan to sell up in 2022’
Almost a quarter of landlords plan to sell up over the next 12 months as buy-to-let becomes increasingly difficult to navigate, a report has claimed. Research from the National Residential Landlords Association (NRLA) found that 23% of property investors intend to dispose of an additional residential property this year. Buy-to-let landlords said tougher tax rules,…
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HMRC is reminding taxpayers that the deadline to submit 2020/21 personal tax returns through self-assessment is on or before midnight on 31 January 2022.
HMRC issues last reminder for 2020/21 personal tax returns Some 407,510 startups were created during the 2020/21 tax year, despite the challenges presented by the pandemic. Those who are unincorporated require a unique taxpayer (UTR) code to file their first tax returns via self-assessment for the 2020/21 tax year. But the tax authority is experiencing…
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The construction industry scheme minefield…..
The construction industry remains one of the UK’s key sectors, which also helps to underpin the UK economy, despite experiencing the effects of the COVID-19 pandemic. In September 2021, construction output grew by 1.3% on the previous month – placing the sector just 1% below its pre-pandemic level – and it’s still worth a decent…
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Everything you need to know before April 2024 about Making Tax Digital
Making Tax Digital for income tax (MTD for ITSA) looks certain to affect sole traders and landlords from April 2024, following the recent news of a one-year delay. This was the latest in a long line of delays and deferrals in the rollout of MTD, which was first proposed by then-Chancellor George Osborne in late…
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Sole traders and other unincorporated businesses reporting change
Reforms to the ways in which unincorporated businesses pay income tax – known as basis periods – will go ahead, one year later than planned. Proposals and draft legislation were published in July 2021, suggesting the new rules would commence from 6 April 2023. Instead, sole traders and most business partnerships will be subject to…
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Tax reporting deadline for additional property sales extends to 60 days
Buy-to-let landlords and second homeowners have twice the amount of time to report and pay capital gains tax after selling a residential property in the UK. The deadline to report and pay capital gains tax after completing the sale of additional UK residential property is now 60 days – up from 30 days. The change…
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Six-month extension for COVID-19 recovery loan scheme to 30 June 2022
Chancellor Rishi Sunak has extended a coronavirus loan guarantee scheme in a bid to protect UK businesses into next year. Sunak used his Autumn Budget speech to announce a six-month extension of the recovery loan scheme, which had been due to end on 31 December 2021 but is now due to close on 30 June…
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Large property developers need to watch out in 22/23
A new levy on large residential property developers’ profits intends to raise around £2 billion over the next 10 years, starting from next spring. The ‘cladding tax’ will be a 4% tax on developers with company profits of £25 million or more from residential development, although student and build-to-rent developments are exempt. It expects to…
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October 2021 Budget
INTRODUCTION “Today’s Budget does not draw a line under COVID-19; we have challenging months ahead”, said Chancellor Rishi Sunak. Chancellor Rishi Sunak resisted temptation to raise taxes to start paying for the emergency support schemes that kept so many businesses afloat during the pandemic in 2020/21. Instead, Sunak continues to bask in the warm glow…
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We are here to help with….
Many people come to us asking for help with tasks. If that rings true with you, it might be time to consider offloading some of that work outside of your expertise in order to give yourself back the time you need. Bookkeeping The first rule of running a successful business is to keep accurate books.…
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Pension options at the age of 55
Despite remaining complex, pensions offer you far more flexibility from the age of 55 (rising to 57 from 6 April 2028) than was once possible. If you are approaching 55, you might be feeling a twinge of trepidation or excitement that you could soon become “a pensioner” as this is the age at which you…
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The temporary increase to the annual investment allowance has been extended by 15 months, just eight weeks before it was due to expire.
The allowance offers 100% tax relief on qualifying plant and machinery up to a specified annual limit. In 2019, the allowance was increased from £200,000 to £1 million – a rise that was scheduled to come to an end on 31 December 2021. Chancellor Rishi Sunak has now extended the higher rate until 31 March…
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Business rates burden eases for retailers and hospitality firms
Thousands of retail, hospitality and leisure firms in England will receive a short-term business rates reprieve in 2022/23, following Autumn Budget 2021. Chancellor Rishi Sunak announced a temporary 50% cut in their business rates, up to a maximum of £110,000 per business. Up to 400,000 businesses in these sectors – including pubs, music venues, cinemas,…
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Hospitality and tourism VAT rate increases to 12.5%
VAT for pubs, restaurants, holiday accommodation and entry to certain attractions increased from 5% to 12.5% last month, following the end of a tax break. A temporary cut first introduced on 8 July 2020 saw the standard rate of VAT for struggling businesses in the hospitality and tourism sectors fall from 20% to 5%. That…
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Salary-sacrifice arrangements could help employees negate the National Insurance contributions (NICs) rise during 2022/23.
NICs will rise by 1.25% for employees, employers and the self-employed from April 2022 to fund the Government’s new health and social care levy. In some scenarios, employees and employers can get around this by striking a salary sacrifice deal to reduce an employee’s gross pay in return for certain non-cash benefits, such as pension…
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Residence & domicile after Brexit
How your status affects the amount of tax you pay. For most UK citizens, the question of what income and gains should be included on their tax return is easily answered because they are both UK domiciled and UK tax resident. Anyone domiciled and resident in the UK will need to report their worldwide income…
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Those self-employed grants are taxable
Three grants worth up to £21,570 are taxable. A chunk of time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic. The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second…
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Tax rates rise 2022/23
National Insurance and dividends tax rates to rise 1.25% in 2022/23 National Insurance contributions (NICs) and the three dividend tax rates will all increase 1.25% from April 2022 to pay for the social care system in England. This social care package will be funded through a new UK-wide health and social care levy, which is…
