Muras Matters: Directors Loan Interest Frozen By HMRC

Background Where a loan is provided to a director by their company, interest free or below the official rate of interest, then a Benefit In Kind (BIK) can arise on loans above £10,000. The BIK is calculated on the loan at the ‘beneficial rate’, less any actual interest paid by the individual. H M Revenue & Customs (HMRC) has recently confirmed that the...

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New employment protections

The following changes were enacted from 6 April 2024. These changes apply to England, Wales and Scotland. Northern Ireland is not included as employment law is devolved. The information that follows is reproduced from a post on the House of Commons Library at https://commonslibrary.parliament.uk/what-employment-laws-are-changing-from-april-2024/#:~:text=New%20legislation%20has%20expanded%20rights,effect%20from%206%20April%202024. Changes to flexible working Employees can now make two rather than one request a year for flexible working,...

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Opening up small company reporting

Companies House are working on detailed changes that will require small and micro sized companies to file information about their turnover and profits at Companies House. Once filed, this data will be available to anyone searching affected companies’ records at Companies House. At present, smaller companies can file abridged accounts that do not include a director’s report or a detailed profit and...

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Muras Matters: Abolition of Furnished Holiday Let Rules

Background In the 2024 Spring Budget it was announced that the Furnished Holiday Let (FHL) rules will be abolished from April 2025.  This week’s Muras Matters looks at how this might impact the owners of FHL’s. Detail Businesses currently qualifying as an FHL have the following tax breaks, which do not apply to general letting business: Business asset taper relief (BADR) can apply...

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Boost for small businesses

In a recent press release, HMRC underlined the benefits to smaller businesses from the increase in the VAT registration threshold and the business rates freeze. Here’s what they said: “Small businesses have received a boost as the VAT registration threshold is raised from £85,000 to £90,000, and £4.3 billion of business rates relief comes into force. “Recognising the inflationary pressures facing small businesses,...

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A new acronym

Most readers of our posts will recognise the acronym CGT or IHT -Capital Gains Tax or Inheritance Tax. And the myriad of other taxes that affect most UK taxpayers in or out of business: IT – Income Tax NIC – National Insurance VAT – Value Added Tax But what about MTD? What is MTD? MTD will be recognisable by most business owners who are registered for...

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Muras Matters: Increase in VAT Registration Threshold

Background One of the main announcements in last month’s budget was the increase in the VAT registration threshold from £85,000 to £90,000 and this change has now come into effect from 1 April 2024.  This change represents the first increase to the threshold since it was frozen with effect from 1 April 2017. In addition, from 1 April 2024, the threshold at which a...

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HMRC helpline changes on hold

HMRC has been forced into an embarrassing climbdown on plans to close the Self-Assessment, VAT and PAYE helplines from early April until September this year. HMRC has now confirmed that these helpline changes have been abandoned following feedback from many concerned stakeholders, including MPs, accountants and members of the public. This means that the helplines will remain open as usual...

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Check your National Insurance record

There is an online service available on HMRC to check your National Insurance Contributions (NIC) record online. The service is available at https://www.gov.uk/check-national-insurance-record In order to use this service, you will need to have a Government Gateway account. If you do not have an account, you can apply to set one up online. By signing in to the 'Check your National Insurance...

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Still time to register for the Marriage Allowance

There is still time to register for the marriage allowance before the current tax year ends on 5 April 2024. The marriage allowance applies to married couples and those in a civil partnership where a spouse or civil partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax (i.e., one of the...

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