Category Archives: News

The Spring Statement 2024, delivered by Chancellor Jeremy Hunt, is poised to transform the economic landscape, with meaningful implications for taxes and businesses. The cornerstone of the budget is a proposed 2p cut to the National Insurance rate for employees, aiming to boost the average worker’s income by £450 a year. When coupled with a similar modification announced last autumn, the savings could amount to £900 annually. The Conservative Government’s Tax Reform Strategy and “British ISAs” Proposal The Conservative government’s bold move to chop taxes is a strategy designed to lower the tax burden and stimulate economic growth. It also […]

The Importance of Utilising the 2023/24 Dividend Allowance

As we approach the final months of the 2023/24 tax year, it’s crucial to consider whether you have taken advantage of the 2023/24 dividend allowance and whether it’s beneficial to extract further profits as dividends before the tax year ends. Incorporating this strategy into your financial planning can have significant tax advantages. Understanding the Dividend Allowance The dividend allowance is a valuable benefit accessible to all taxpayers, regardless of their tax rate. For the 2023/24 tax year, the dividend allowance is set at £1,000, but it will decrease to £500 for the next tax year, 2024/25. Dividends that fall within […]

If you’re a business owner in need of quick financing, short term business loans can be a viable solution. Understanding the interest rates and implications of borrowing is crucial to making informed financial decisions. In this blog post, we’ll delve into the world of short term business loans, explore the influence of interest rates, and shed light on HMRC regulations. KA Farr Accountants & Tax Advisors is here to provide you with essential insights on this topic. Access Immediate Funds Short term business loans offer a convenient way for businesses to access immediate funds. Unlike traditional bank loans or credit […]

Merry Christmas and a Happy New Year from KA Farr & Co!

As the Christmas swiftly approaches, we wanted to take a moment to spread some festive joy in our special Christmas blog post. We have some exciting news to share, but before we do, please take note of our seasonal opening hours: Festive Opening Hours We will be closing our doors on the 22nd of December at 12pm and reopening on the 2nd of January 2024 at 9am. If you need to reach us before we close, you can contact us by calling 01704 211 434 or emailing us at info@kafarr.co.uk. Now let’s talk about the fun stuff! We recently had […]

Autumn Statement 2023: What You Need to Know

The Autumn Statement 2023 has brought significant changes that will have a profound impact on businesses and individuals alike. In this blog post, we will delve into the key updates announced in the Autumn Finance Bill, focusing on the keywords ‘Autumn Statement 2023’ for the KA Farr website. Significant Changes in the Autumn Statement The Autumn Finance Bill has introduced a game-changing update for businesses. The ‘Full Expensing’ deduction, which allows companies to claim a 100% first-year deduction on qualifying new investments, will now be a permanent feature. This move aims to encourage businesses to invest in their growth and […]

In a move to enhance tax compliance and tackle tax evasion, HM Revenue and Customs (HMRC) is set to implement new regulations on data collection. These changes, effective from April 2025, will have a significant impact on owner managed businesses and individual employees. In this blog post, we will delve into the details of the HMRC data collection requirements and explore the implications for businesses and employees. Understanding the New Rules Under the new regulations, owner managed business directors will be subject to increased scrutiny regarding dividend payments. Employers will also be obligated to report individual employees’ working hours. These […]

HMRC has closed its phone lines – How to make contact

Back in June (with only four days’ notice) a trial to redirect Self Assessment (SA) queries from HMRC’s phone helpline to its digital services began. This trial is set to run for three months – up to the 4th of September 2023.  This means that taxpayers are relying on HMRC’s online guidance, digital assistant and web chat over the summer months, rather than the helpline for support. Why is this happening? HMRC is behind in answering its post and finalising problems including investigations, some of which have been waiting a year to be settled. Their annual performance report for 2022/23 […]

Pension Changes: All you need to know!

The Chancellor recently announced some significant changes to pension tax rules that will majorly impact those saving for retirement. The annual allowance for pension contributions is increasing, and the lifetime allowance – which limited the amount of money individuals could put into their pensions – has been abolished altogether. We’re going to break down these changes so you are all caught up with everything you need to know! Annual Allowances Any contributions to a registered pension scheme greater than an individual’s annual allowance will incur a tax charge. The annual allowance for the 2021/22 and 2022/23 tax years is £40,000; […]

MTD postponed by two years

Making Tax Digital (MTD) for self-assessment and income tax was planned to be implemented in 2023. However, the Government has now announced it has been postponed by two years to 2025. This decision was made to give taxpayers sufficient time to prepare themselves before introducing the change. The delay has been welcomed by many businesses and individuals, as it gives them more time to plan and adjust their processes accordingly. Although an exact date has yet to be set for MTD’s full roll-out, the government aims to fully implement the changes by April 2025. In the meantime, self-employed individuals must […]

Currently, the normal company year end date can be changed to any specific date you want. You can extend the date to a maximum of 18 months (longer if your company is facing administration). This can only be changed once every five years (with some exceptions). So it’s safe to say that if you want to do this with your business, you want to get it right the first time. What is the best date to change to? The end of the year? The midpoint of the year? How about the 5th of April? Tax Year The tax year commences […]