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Devolution of tax powers – what you need to know
What tax powers are moving away from Westminster? It may feel like we’re living in increasingly uncertain times ever since the UK voted to leave the EU. That centred on most of the electorate’s desire to obtain more devolved powers from Brussels, but in reality devolution has been going on a lot closer to home…
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No more extra credit card fees on bills
Retailers and businesses are no longer able to charge consumers extra for using a credit card to pay for goods or services. Interchange fees charged by firms on people who paid by credit card were banned on 13 January 2018 on the back of a widespread piece of EU legislation. Some were previously surcharging consumers…
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Fraudulent tax bills
Vulnerable and elderly people are being told they owe large amounts of tax which they can only pay off through digital vouchers and gift cards. HMRC has issued a warning over fraudsters who are preying on victims by cold-calling them and impersonating members of staff from the Revenue. Figures from Action Fraud, the national fraud…
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Making tax digital – are you ready?
The overwhelming majority of business owners and landlords remain in the dark over making tax digital (MTD), government research shows. Ipsos Mori polled 2,900 small businesses and landlords on behalf of HMRC and found that 71% were unaware of the requirement to submit quarterly updates to the taxman. A further 13% had heard of the…
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Staircase tax – amendments to be made
The government has started the process to reverse the so-called ‘staircase tax’ to ease the pressure on small businesses. Communities secretary Sajid Javid published draft legislation, which stands to benefit thousands of small business owners, to abolish the measure. The loophole was first introduced after the Supreme Court ruled that an office spread over more…
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What to expect if the Revenue comes knocking
What to expect when the Revenue comes knocking. Anyone whose business comes under the Revenue’s microscope is usually in for a roller-coaster ride. HMRC has upped its game in recent years when it comes to probing businesses or sole traders who may be suspected of falsely reporting or underpaying tax. Nobody appears to be beyond…
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Charitable donations and tax planning
How to include charitable donations in your tax planning strategy. Incorporating charitable giving into your tax planning strategy can be a useful way to reduce both your income tax and the inheritance tax (IHT) that will eventually become payable on your estate. As such, gifts may become an important component of both the estate planning…
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Tax card 2018/19
Tax Card 2018/19 TAXABLE INCOME BANDS AND TAX RATES 2018/19 2017/18 Starting rate* of 0% on savings up to £5,000 £5,000 Basic rate band £34,500 £33,500 Higher rate band £34,501 – £150,000 £33,501 – £150,000 Additional rate band Over £150,000 Over £150,000 Basic rate 20% 20% Higher rate 40% 40% Additional rate 45% 45%…
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Self-employed and Sole trader numbers increase
The number of private sector businesses in the UK hit a record high of 5.7 million at the start of 2017, according to government figures. Annual statistics from the Department for Business, Industry, Energy and Strategy showed a year-on-year rise of 197,000, compared to the same time in 2016. The number of firms in 2017…
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HMRC stops the use of personal credit cards for payments
HMRC is withdrawing the option to use a personal credit card to pay for tax returns, with the deadline for online submissions rapidly approaching. The Revenue is withdrawing this facility on 13 January 2018, just weeks before any money owed for 2016/17 is due by midnight on 31 January 2018. HMRC will continue to accept…
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Are you facing a skills shortage?
Small businesses are experiencing skills shortages in both their workforce and their recruitment processes, causing concerns for future productivity. The Federation of Small Businesses (FSB) surveyed 1,203 small business owners and found that 46% lack a fully proficient workforce. Additionally, almost a third (30%) of business owners who have recruited in the last 12 months…
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Limited company to Sole trader status – act now.
Disincorporation relief will not be extended beyond its 31 March 2018 expiry date. The relief was introduced in April 2013 in a bid to remove the tax burdens when small business owners want to change from a limited company to a sole trader or partnership. It allows companies to transfer certain assets, such as land,…
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Limited companies – what you need to know
Audits may be a thing of the past, but certain annual reports still apply. If you’re a business owner, you may be familiar with the process of submitting your accounts for official inspection by an independent body. This is known as an audit. You may also breathe a sigh of relief as most small businesses…
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Autumn Budget mentions
A range of measures designed to boost business and productivity were announced in Autumn Budget 2017. Amid a background of discontent surrounding business rates, chancellor Philip Hammond revealed future increases will be determined by the Consumer Prices Index measure of inflation from April 2018. The measure comes into effect two years earlier than originally planned…
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R&D Tax credit claims hits new high
Research and development (R&D) tax credit claims by small businesses climbed to £1.345 billion in 2015/16, according to HMRC. The revenue recently released R&D data for the previous financial year that shows claims increased from £1 billion in 2014/15 to hit another record high last year. The total number of claims for R&D credits in…
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Class 2 NI – update
Chancellor Philip Hammond has delayed the decision to abolish class 2 national insurance contributions (NICs) by 12 months. The policy, which was first announced by Hammond’s predecessor George Osborne in 2016, would have seen class 2 NICs incorporated in reformed class 4 NICs from April 2018. Self-employed workers earning less than £6,025 in 2017/18 can…
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VAT threshhold frozen to 2020
Small businesses breathed a collective sigh of relief when chancellor Philip Hammond resisted calls to lower the VAT registration threshold in Autumn Budget 2017. The Office of Tax Simplification (OTS) made eight core recommendations for the government to clarify the VAT system ahead of the chancellor’s speech on 22 November 2017. It called the current…
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How is your business performing? – measures to use.
What are the best ways to assess your firm’s performance? Changing market conditions make it more important than ever to measure your business’ performance on a regular basis. The impact caused by recent events, such as the vote to leave the EU in June 2016 and the snap general election, have added to the uncertainty…
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Reducing corporation tax on patent income
Reducing corporation tax due on patent income. The patent box regime applies a reduced rate of corporation tax to profits attributable to qualifying patents and similar intellectual property (IP). Unincorporated businesses can’t qualify for the patent box. The patent box tax rate has gradually been reduced to 10% since the introduction of the regime in…
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Apprenticeship levy – offsetting the cost
Almost a quarter (23%) of businesses paying the apprenticeship levy has no understanding of how it works – six months after its introduction. 56% of more than 1,400 firms surveyed by the British Chambers of Commerce (BCC) did not expect to recover their payment, despite receiving an annual allowance to offset against the bill. As…
