Employers usually have to pay employees through PAYE if they earn £123 or more a week (£533 a month or £6,396 a year). There is no requirement to pay self-employed workers through PAYE. HMRC’s guidance states that: As a general rule, someone is: employed if they work for you and do not have any of the risks associated with running a business; and self-employed...
Reporting self-employed profits 2023-24
The basis of assessment reforms will change the way trading income is allocated to tax years. The changes will affect sole traders and partnerships that use an accounting date between 6 April and 30 March. There is no change to the rule for companies. The reforms will change the basis period from a ‘current year basis’ to a ‘tax year basis’. Under...
Tax Diary November/December 2023
1 November 2023 - Due date for Corporation Tax due for the year ended 31 January 2023. 19 November 2023 - PAYE and NIC deductions due for month ended 5 November 2023. (If you pay your tax electronically the due date is 22 November 2023.) 19 November 2023 - Filing deadline for the CIS300 monthly return for the month ended 5 November...
Management accounting provides benefits in difficult times
In the ever-changing economic landscape, business owners are constantly faced with challenges that can impact the financial health of their enterprises. During such trying times, management accounting proves to be an invaluable tool, providing crucial insights and strategic advantages that can make the difference between survival and success. Enhanced decision-making Management accounting allows business owners to make informed decisions based on real-time data...
Meeting the challenges of a high-interest environment
Navigating the challenges of a high-interest rate environment can be tough for businesses, but it's not impossible. While rising interest rates can pose hurdles to financing and operational costs, there are strategies companies can employ to secure the capital they need and maintain financial stability. Review existing debt Start by evaluating your current debt structure. Refinancing existing loans at lower rates or consolidating...
Muras Matters: High Income Child Benefit Charge – HMRC Target Non-payers
Background The high income child benefit charge (HICBC) was introduced in January 2013 to restrict the amount of child benefit that higher earners and their partners can receive. If one partner has an adjusted net income (broadly taxable income less trading losses, gift aid and pension contributions) of more than £50,000 and the couple receive child benefit then they will have...
Registering for VAT? Time to go online
HM Revenue and Customs (HMRC) has revamped its VAT registration process, prioritising digital applications for businesses and agents. Starting from November 13, this change aims to streamline the registration procedure, making it quicker, easier and more secure. HMRC is urging businesses and agents to embrace the digital approach for VAT registration. Unless they fall under the category of digital exclusion or...
Change of heart over new company reporting proposals
The Government has withdrawn draft regulations for company reporting after consultation with businesses raised concerns about imposing additional requirements. Instead, the Government will pursue options to reduce the burden of red tape to ensure the UK is one of the best places in the world to do business. Draft regulations published in July would have added certain additional corporate and company reporting...
Muras Matters: Charging of Electric Vehicles
Background We have reported in the past on the tax implications for both the employer and employee of providing and using electric vehicles within businesses. Generally, it is well understood that electric vehicles are very tax-efficient and the government offers a number of tax reliefs to incentivise their use and provision. As with many areas of tax however there are grey areas,...
Question of the day -Why does tax year start on April 6?
If you have ever stopped to ask yourself, why does the tax year start on April 6, you are definitely not alone. The idea that the tax year doesn’t begin until we are a quarter of the way into the year is a somewhat perplexing concept for many. Accountants and taxpayers alike often wonder why this seemingly arbitrary date was chosen...