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The Accountants for Growth

Cash in a company can causes tax problems - surely not!

Cash in a company can causes tax problems - surely not!
Learn about the tax problems of holding too much cash in your company. Successful companies can accumulate significant cash balances if profits are left in the business and not paid out as salaries or dividends. That you may think is a risk-free strategy from a tax perspective and there is nothing wrong by holding cash which has been earned from profits in your company until you approach retirement.

I have seen several clients over the years leave accumulated cash in their company with the intention of taking a large pay out when the company is wound up or sold on their retirement. They are looking to take advantage of Business Asset Disposal Relief where they will pay 10% capital gains tax on the first £1m and 20% on any excess.
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Working From Home - The new Tax Rules

Working From Home - The new Tax Rules

Learn how the working from home easement is coming to an end. If you are an employer whose team work from home or an employee benefiting from working from home arrangements, you need to take account of the new rules taking effect from 5 April 2022.

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Spring Statement 2022


Fuel Duty cut
• Cutting fuel duty on petrol and diesel by 5p per litre for 12 months.
• The cut takes effect from 6pm on 23rd March 2022.
 
Employment Allowance increase
• The Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year.
• From April 2022 the Employment Allowance will increase from £4,000 to £5,000.
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Do not let the taxman catch you out when you trade in cryptocurrencies

Learn about the taxation implications of trading in cryptocurrencies We have seen a steady increase over the last few years of clients trading in cryptocurrencies and many have put their head in the sand when it comes to declaring these activities to H.M. Revenue & Customs. This is a dangerous game to play, so this blog will explain your responsibilities in terms of declaring your cryptocurrency transactions and how H.M Revenue & Customs are likely to treat your trading from a taxation point of view.
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Increased disclosures for small companies’ accounts filed at Companies House

Learn about likely changes to the information included in small company accounts which are filed at Companies House Learn how the Government is planning to ramp up the information that has to be included in a small company's accounts filed on public record
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The New HMRC Late Payment Penalty (LPP) Regime

What is the aim?

  • To bring the LPP regime in line for both VAT and income tax.
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Plan your dividend strategy from your company to minimise your tax liabilities.

Learn about the changes in taxation that will impact on your dividend income. With tax hikes around the corner, learn how to plan your dividend strategy in order to maximise the income in your pocket.

The rules for taxation on dividends currently are as follows: -

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H.M. Revenue & Customs on the attack to recover SEISS grants

H.M. Revenue & Customs on the attack to recover SEISS grants
H.M. Revenue & Customs are looking to clawback some self employed grants advanced to taxpayers who have not filed their 2019-20 self-assessment return on time. If you still have not filed your 2019-20 tax return then we suggest that you get this done immediately or you are likely to lose your Self Employed Income Support Scheme (SEISS) grant.
 
HMRC are also sending out letters to taxpayers who have claimed the first, second and/or third Self Employment Income Support Scheme grants but have not yet filed their 2019/20 SA Return.
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Rises in CT rates

Rises in CT rates
Start Planning now to avoid the hike in Corporation Tax

Learn about the increases in Corporation tax that all businesses are facing over the coming years The Government have recently announced that Corporation tax rates will rise as they look to recover money spent in giving business and individual support during the pandemic. In this blog, we will explain how the rises will impact on businesses and share a few thoughts about how to plan to minimise the rate rise impact.
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Making Tax Digital (MTD) For Property Landlords (PL)

Making Tax Digital (MTD) For Property Landlords (PL)

When does MTD come in for PLs?
The earliest date would be 6th April 2023.

When would a PL have to register for MTD?
The earlier of:

The tax year following that in which your gross rental turnover figure exceeds £10,000 or more.
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The New HMRC Late Payment Penalty (LLP) Regime

The New HMRC Late Payment Penalty (LLP) Regime
What is the aim?
· To bring the LPP regime in line for both VAT and income tax.
 
When will the new penalty regime start?
· For VAT - accounting periods beginning on or after 1st April 2022.
· From an income tax perspective, for those self-employed and property landlords who will be caught by Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) – Accounting periods beginning on or after 6th April 2023.
· For those remaining taxpayers still caught up within the SA Return system – Accounting periods beginning on or after 6th April 2024.
 
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Watch out Self Employed - Changes Ahead

Watch out Self Employed - Changes Ahead
Who does this affect?
·       Unincorporated businesses (sole-traders, partnerships, and limited liability partnerships) whose accounts year does not end between 31st March and 5th April.
 
What is the present position?
·       For a particular tax year, you are normally taxed on the net profit per the accounts which end in that tax year.
 
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The Self Employed - Change of Basis Period 2022/23

The Self Employed - Change of Basis Period 2022/23
The Present Position
·       For a particular tax year, the S/e are normally taxed on the net profit per the accounts which end in that tax year. This is called the basis period.
 
Example of the Present Position
·       Tom has been S/e for a number of years and draws up accounts to 30th April each year. 
·       His accounts to 30th April 2021 shows net profit of £30,000. That is taxable in the 2021/22 tax year.
 
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If I sell my garden will I end up paying tax?

If I sell my garden will I end up paying tax?
Learn about the tax implications of selling or developing your garden. With demand for housing on the increase some home owners are selling their garden for development in order to cash in on their property - but will they get stung for tax in the process - read on to find out!
Before you decide to sell your garden or take the decision to develop it yourself you need to assess the taxation implications before making a decision. There are two taxes, income tax and capital gains tax that may come into play.

If the landowner chooses to develop the land, then H.M. Revenue & Customs are likely to consider this as a trade even if the developed area had previously been part of the garden. When the development starts, the building plot will convert from capital to stock at its market value.
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Coronavirus support claims

Coronavirus support claims

Beware if your Coronavirus support claims do not stand up to scrutiny!

 

Learn about new developments regarding H.M. Revenue & Customs examination of Coronavirus claims We will explain how H.M. Revenue & Customs are cranking up their examination of suspect Coronavirus support claims and what you can do to avoid a nasty shock.
 

We have managed to obtain details of the number of enquiries which have been opened up by H.M. Revenue & Customs up to 31 March 2021, regarding the Coronavirus Job Retention Scheme and the Self Employed Income Support Scheme.
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Furnished Holiday Lettings

Furnished Holiday Lettings
Save tax by the seaside!
Learn about the tax benefits of investing in furnished holiday let properties. In this blog you will learn about the tax breaks that go with owning furnished holiday lets and the rules that you have to follow in order to qualify for the reliefs.
 
In order for properties to qualify as furnished holiday lets, they must be held in the UK or the EEA. If you own several UK Holiday let properties, then they are all classified as one business.
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Furnished Holiday Lets (FHL) HMRC Enquiry Risks

Furnished Holiday Lets (FHL) HMRC Enquiry Risks
The history behind a HMRC enquiry – business rates and Covid-19 Grants
  • FHL can opt to pay business rates as opposed to council tax.
  • In 80% of the UK the business rates are less than the council tax.
  • If the FHL owner has previously paid council tax and the FHL business rates criteria would have applied in the past, a backdated refund could be claimed.
  • Small Business Rates Relief (SBRR) could be claimed which may reduce the business rates to nil or reduce the amount to be paid. The SBRR varies depending upon which part of the UK the property is situated.
  • FHL owners may have been entitled to UK/local Covid-19 grants which are usually linked to the rateable value of the property.
  • Note - the business rates eligibility criteria differs from the FHL income tax/capital gains tax rules.
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    Self-Employed Income Support Scheme (SEISS) 4th Grant Claim

    Self-Employed Income Support Scheme (SEISS) 4th Grant Claim
    What period does the 4th grant cover?
  • February 2021 to April 2021 inclusive.
  • When can the 4th grant claim be made?
  • If you are eligible, HMRC should contact you around mid-April 2021 to provide you with a date from which you can make the claim through the Gov.UK online portal.
  • The final deadline for making the claim will be 31st May 2021.
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    Corporate Super Deduction

    Corporate Super Deduction
    What is it?
    • It is a 130% first year allowance deduction for expenditure incurred in purchasing plant & machinery that would normally qualify for a main rate writing down allowance of 18%.
     
    When can you claim it?
    • You can claim it for expenditure incurred on or after 1st April 2021 up to and including 31st March 2023.
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    Company Car Review

    Company Car Review
    Vehicle Tax Changes
     
    In the past many considered a company car to be a perk of middle management and above with employers using a sliding scale of quality of cars as a carrot for harder work or longer hours.  But as the tax increases were used by successive governments to support greener policies by encouraging lower emission vehicles the prestige of a company car was often outweighed by the tax charges faced by the employee.  Company cars began to fall out of popularity. 
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