Category Archives: Tax

Dividend Tax Increase

Similarly to the recent increase in national insurance, the government has increased dividend tax by 1.25%. (As of 06/04/2022) If you’re wondering what this means for you, your business or just in general then we have you covered. Today we will be breaking down what dividend tax is, why the increase is happening and why it may be the right path for you if you are a director even with the increase. What is dividend tax? If you are a director and own shares in a company/business you may be entitled to a share of the profits. This is known […]

Spring statement 2022: what it means for you

Chancellor Rishi Sunak delivered the Spring Statement 2022 on the 25th of March. He made announcements about National Insurance, VAT relief and fuel duty. But what does it mean for you? A Sombre Mood The chancellor opened his speech by highlighting the war in Ukraine and said “Britain’s economic strength underpinned freedom and liberty”. “The actions we have taken to sanction Putin’s regime are not cost-free for us at home. The invasion of Ukraine presents a risk to our recovery as it does to countries around the world,” The chancellor went on to say that he would respond to the […]

How Does VAT Work And Which Tax Scheme Is Right For You?

If you are about to become VAT registered you might be left asking how does VAT work, and what does it mean for my business? VAT can be a confusing subject for new and experienced business owners alike. You must become VAT registered when your business turnover has reached the VAT threshold. What Is The VAT Threshold? In the UK a business currently must register for VAT if its annual turnover is more than £85,000. This figure changes yearly and usually increases on the 1st of April each year. There are certain items that are VAT-exempt such as charitable donations. […]

Latest MTD Rules News

MTD For VAT The deadline for all VAT records to be recorded and submitted digitally is fast approaching. From April 2022, the requirements to keep digital VAT records and send returns using MTD-compatible software will apply to all VAT-registered businesses.  This means that even businesses that are below the VAT threshold and voluntarily VAT-registered must meet MTD rules. This stage is the next part of  HMRC’s 10-year strategy for the tax system. “to improve its resilience, effectiveness and support for taxpayers” Many Still Need To Opt-In According to HMRC’s latest figures in September 2021, only 30% of those VAT registered […]

Self Assessment 2022

As the year comes to a close, many people, including our clients are preparing for the upcoming self-assessment tax returns requiring filing in 2022. Since the very first day of the tax year (6th April) more than 63,500 people have filed their tax returns to the HMRC. With the deadline (January 31st 2022) coming up swiftly, here’s a little breakdown of the basics around self-assessment tax returns to allow you to pay on time and even before the deadline. What are Self-assessment Tax Returns? This system is used by HMRC as a way to collect income tax. Time To Pay […]

Important Tax Year Dates

As we approach the end of another year we thought it would be helpful to provide you with a list of important tax year dates for your diary. The UK tax year is different to the calendar year and is used to calculate tax payable or owed. It starts on the 6th of April each year and ends on the 5th of April the following year. Also referred to as the financial year, it is a period of 12 months which is used to calculate tax for employed and self-employed tax payers. However, not all businesses manage their books according […]

Off-payroll working – What is IR35?

IR35 is tax legislation designed to tackle tax avoidance by workers, and the firms hiring them that has been in place for 20 years. However, the rules for the public sector were tightened in 2017 and for the private sector in April 2021. That’s why it has been a hot topic for many business owners and off-payroll workers in recent months. Why does IR35 exist? IR35 was introduced to tackle the issue of workers carrying out regular work in what is known as ‘deemed employment’. Deemed employment is where businesses engage workers on a self-employed basis (usually through an intermediary, […]

If you think that you may be eligible for the fifth Self-Employment Income Support Scheme (SEISS) grant, it’s now time to apply. If HMRC thinks that you may be eligible then they should already have written to you with your personal claim date. However, if you haven’t had any correspondence then you can check the eligibility criteria here. If you do wish to make a claim you must do this on or before the 30th of September 2021. Important Information About The Fifth Self-Employment Income Support Scheme You Must Make The Claim Yourself You cannot ask an accountant or tax […]

Electric Car Tax Benefits

As well as the well known environmental benefits, there are also lots of electric car tax benefits.  From government grants to benefit in kind allowances, there are reasons to lease or buy an electric car via the company and make it available for private use to an employee/director. In this blog, we will go through the grants available and the benefit in kind implications of buying an electric car through your business. Benefit-In-Kind Implications One of the key electric car tax benefits is a very low benefit in kind (BiK) rate. This makes it a highly tax-efficient option for individuals and […]

HMRC enquiries into individuals and businesses are carried out each year in order to ensure that they have paid the right amount of tax.  Since 2010 HMRC have strengthened their approach and we have observed a general trend which has displayed a year-on-year increase in the number of tax enquiries opened. COVID 19 & HMRC Enquiries The pandemic in 2020 was unprecedented in so many ways for both individuals and businesses.  When the first lockdown hit in March 2020, along with the majority of the country HMRC found themselves adapting to working from home. With operatives unable to undertake face […]