Ministers have revealed bold plans to reform and modernise the way regulations are made and implemented in the UK. Following Brexit, the UK has the freedom to make and implement regulations that place British businesses and consumers first – freeing firms from excessive formality and reducing costs, while boosting competition, innovation and economic growth. Unnecessary bureaucracy To reduce unnecessary red tape following the...
Muras Matters: Residential Property Transactions
Background The threshold for paying stamp duty on residential property was temporarily increased last year from £125,000 to £500,000. This nil rate band reduced from 1 July 2021 to £250,000 and is due to return to the standard £125,000 on 1 October 2021. The stamp duty threshold changes apply to companies as well as individuals buying residential property. For individuals selling a...
Making use of under-utilised resources
Many businesses will have seen a reduction in activity as a direct result of the COVID pandemic. Assets and resources previously fully employed now lie idle or are under-utilised. In this post today we have listed a few ideas that may help you create new income streams from these resources. For example: Premises Do you have storage, office or shop-floor space that is...
New reforms to protect consumers hard-earned cash
The UK Government’s Business Secretary, Kwasi Kwarteng, has revealed an arsenal of planned reforms to boost competition and protect the public from rip-offs, fraud and exploitation as the pandemic restrictions lift. Plans set out in a new consultation will deliver on the manifesto commitment to ‘give the Competition and Markets Authority enhanced powers to tackle consumer rip-offs and bad business practices.’ Business...
VAT – Second-hand cars – using the Margin Scheme
If you sell second-hand vehicles and you were not charged VAT when you purchased the vehicle, using the Margin Scheme will save you money. If you did not use the VAT Margin Scheme, you would have to account for VAT on the full selling price of each vehicle. However, if you use the Margin Scheme, you can account for VAT on...
Business entertaining and tax relief
Expenditure on business entertainment is not allowable as a deduction against profits. Nor may a deduction be made for any expenditure which is incidental to business entertainment. The meaning of ‘incidental’ is not defined by HMRC but should be interpreted to mean any expenditure that is incurred directly or indirectly in connection with the provision of entertainment. This might include payments to...
Sponsoring a charity
Charity sponsorship payments are different from donations because your company gets something related to your business in return. Typically, your business brand would be promoted by the charity in some way. You can deduct sponsorship payments from your business profits before you pay tax by treating them as business expenses. Payments qualify as business expenses if the charity: officially supports your products or...
Tax-free property and trading income
You can claim up to £1,000 each tax year in tax-free allowances for property or trading income. If you have both types of income, you will qualify for a £1,000 allowance for each. If your annual gross property income is £1,000 or less, from one or more property businesses you will not have to tell HMRC or declare this income on...
Tax Diary August/September 2021
1 August 2021 - Due date for Corporation Tax due for the year ended 31 October 2020. 19 August 2021 - PAYE and NIC deductions due for month ended 5 August 2021. (If you pay your tax electronically the due date is 22 August 2021) 19 August 2021 - Filing deadline for the CIS300 monthly return for the month ended 5 August...
Muras Matters: Changes to Trust Registration Requirements
Background Since 2017 there has been a requirement under anti money laundering regulations for all taxable relevant trusts, those which had a tax liability, to be registered with H M Revenue & Customs (HMRC) on their on-line Trust Registration Service (TRS). The trustees of these trusts have had to provide certain information to HMRC including details about the settlor(s), trustees and beneficiaries,...