Background From 6 April 2024, a new ‘tax year basis’ of assessment will apply to the trading profits of unincorporated businesses, such as sole traders and partners, which are subject to income tax. Under the tax year basis, these businesses will be taxed on the profits arising in each tax year (6 April to the following 5 April), regardless of their accounting...
Check out the Trivial Benefits rules
Trivial benefits are small gifts or perks given to employees that are exempt from tax and benefit reporting obligations. But bosses must adhere to certain conditions, such as a cost limit of £50 per employee – or the average cost per employee if provided to a group of employees. Additionally, the benefit cannot be cash or a cash voucher, and it...
Death and taxes
Death and taxes are certainties of life, according to Benjamin Franklin, and if you are in business, you should be aware which taxes you are liable to pay. Our mantra is - by understanding the taxes that your business is required to pay - you can plan and budget accordingly. No surprises… There are several types of taxes that businesses may be...
Muras Matters: Tax Traps For High Earners Removed From Self Assessment
Background From 6 April 2023 the employment income threshold, whereby an individual is automatically required to file a self assessment tax return even if all income was taxed at source through PAYE, increased from £100,000 to £150,000. This threshold has then be removed altogether from 6 April 2024. HM Revenue & Customs (HMRC) have recently been sending letters to affected taxpayers informing...
What to expect in the coming year
It will not have escaped your attention that Prime Minister Sunak will need to call a general election at sometime during 2024. The very latest election date that can be held is 28 January 2025. If results follow the polls, we are likely to see the Labour Party in charge once more. New brooms Politics being the moveable feast that it is, the...
Payrolling employee for expenses and benefits
Employers can register on a voluntary basis (before the start of the tax year) to report and account for tax on certain benefits and expenses via the RTI system. This is known as payrolling and removes the requirement to complete a P11D for the selected benefits at the tax year end. The deadline for submitting the 2023-24 forms P11D, P11D(b) and...
Companies House is flexing its muscles
As we have reported previously, one of the key aims of the Economic Crime and Corporate Transparency Act is to improve the accuracy and quality of the data on Companies House registers. Under the new legislation, Companies House has enhanced powers to query information that appears to be incorrect or inconsistent with information held. It is the intention that over time this...
VAT boost to charitable donations
The Treasury have issued details of a new VAT relief that is aimed at boosting the value of items donated to charities. It will consult on introducing a UK-wide VAT relief for a range of low value household goods which businesses donate to charities to give away free of charge to people in need. The conclusion to the consultation will be...
Childcare Account chores
HMRC’s Childcare Account can be used to claim free childcare (if eligible) or pay for Tax-Free Childcare. HMRC’s sign in page for the account states that in order ‘…to keep getting free childcare or Tax-Free Childcare, you must sign in every 3 months and confirm your details are up to date’. There are various eligibility rules that must be met to...
Payrolling employee expenses and benefits
Employers can register on a voluntary basis (before the start of the tax year) to report and account for tax on certain benefits and expenses via the RTI system. This is known as payrolling and removes the requirement to complete a P11D for the selected benefits at the tax year end. Registration is now open to payroll your benefits from 6...