Most small business owners are happy, from a financial point of view, if sales are in line with expectations. And there are obvious grounds for this conclusion, after all, if sales dry up there are no funds feeding into cashflow.
Unfortunately, top-line sales are just one aspect of a business that measure bottom-line profitability.
Importing or exporting for the first time?20/02/2024
If you are considering selling or buying to or from companies based outside the UK, you may well be overawed by the plethora of regulation you are required to be familiar.
As a first step, you could make use of the GOV.UK website and access HMRC’s “digital assistant”. You could use this to find out about:
getting an EORI...More...
A reminder that NLW and NMW rates are increasing 15/02/2024
A reminder for our readers that the National Living Wage (NLW) and the National Minimum Wage (NMW) rates will increase with effect from 1 April 2024.
The increase will see the NLW rate increased to £11.44 per hour, an increase of over £1 over the current rate of £10.42. This means the annual earnings of a full-time worker on the NLW will...More...
Checking Furnished Holiday Let property occupancy15/02/2024
The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes.
In order to qualify as a furnished holiday letting, the following criteria need to be met:
The property must be let on a commercial basis with a view to the realisation of profits. Second...More...
Eligibility for the VAT Flat Rate Scheme15/02/2024
The VAT Flat Rate scheme is open to VAT registered businesses that expect their taxable turnover in the next 12 months to be no more than £150,000, excluding VAT. The annual taxable turnover limit is the total of everything that a business sells during the year that is not VAT exempt.
Under the scheme rules, businesses pay VAT as a fixed...More...
Tax on inherited private pensions15/02/2024
Private pensions can be an efficient way to pass on wealth, but it is important to consider what, if any, tax will be payable on a private pension you inherit. The person who died will usually have nominated you by telling their pension provider that you should inherit any monies left in their pension pot. If the nominated person can’t be...More...
What is Class 1A NIC?15/02/2024
Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. Class 1A NICs are also due on charge on termination awards above a £30,000 threshold that have not already been subjected to Class 1 NICs deductions. There’s no employee contribution payable for Class 1A NICs.
Autumn Finance Bill 2023 update15/02/2024
The government published the Autumn Finance Bill 2023 on 29 November 2023. The Bill is officially known as Finance Bill 2023-24. The Bill contains the legislation for many of the tax measures announced in the recent Autumn Statement.
The Bill has now completed its passage through the House of Commons and the 1st reading at the House of...More...
The Valuation Office Agency tackles holiday lets14/02/2024
The Valuation Office Agency (VOA) is writing to some owners of self-catering holiday lets that are assessed for business rates. They are doing this because they need further information about the income and expenditure of these properties.
Last year, the VOA wrote to most self-catering holiday let owners in England and Wales to ask them...More...
Full-time and part-time contracts14/02/2024
As an employer, the tax and employment responsibilities you have for your staff will depend on the type of contract you give them and their employment status.
Contract types include:
full-time and part-time contracts
freelancers, consultants, contractors
There are also...More...
Tax Diary March/April 202409/02/2024
1 March 2024 - Due date for Corporation Tax due for the year ended 31 May 2023.
2 March 2024 - Self-Assessment tax for 2022-23 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2024, or an agreement has been reached with HMRC under their time to pay facility by the same date.
19 March 2024 - PAYE...More...
Alcohol duty freeze takes effect08/02/2024
As part of the Autumn Statement measures the Chancellor announced that the duty rates on beer, cider, wine and spirits would be frozen at the current rates until 1 August 2024. This change took effect from 1 February 2024 and will last for 6 months.
The alcohol duty freeze will mean that more than 38,000 pubs will benefit. Not increasing...More...
Record number of taxpayers file on time08/02/2024
HMRC has confirmed that more than 11.5 million people submitted their 2022-23 self-assessment tax returns by the 31 January deadline. This included over 778,000 taxpayers who left their filing until the final day and almost 33,000 that filed in the last hour (between 23:00 and 23:59) before the deadline!
Whilst this was the highest ever...More...
Reporting employee changes to HMRC08/02/2024
There are rules that businesses must follow when they are reporting employee changes. These changes must be sent to HMRC using a Full Payment Submission (FPS). The FPS is a submission that is required every time you pay your employees and must be submitted on or before the usual date you pay your employees. The information provided on an...More...
Landlords - claiming maintenance and repairs costs08/02/2024
Landlords are able to claim for allowable expenses as a deduction from their rental income when calculating taxable rental profits to declare to HMRC. The expenses must relate wholly and exclusively for the purposes of renting out the property.
There is also a range of other types of expenses that can be claimed as a deduction when paid...More...
Should you pay tax on selling goods online? 08/02/2024
HMRC has published new guidance for taxpayers that regularly sell goods or services through an online marketplace. The guidance makes it clear that this activity could be treated as a ‘trade’ for UK tax purposes. If this is the case taxpayers may need to pay tax on income they earn from buying and selling goods as a trade or business...More...
Using your own vehicles for work-related journeys08/02/2024
If you are an employee and use your own money to buy things you need for your job you can sometimes claim tax relief for the associated costs. Usually, it is only possible to claim tax relief for the cost of items used solely for your work.
You may also be able to claim tax relief for using your own vehicle, be it a car, van, motorcycle...More...
Government promotes electric vehicles06/02/2024
The government department active in the promotion of electric vehicles has published guidance regarding the costs, charging issues and infrastructure. We have extracted a few comments and reproduced them in this post.
Buying an electric vehicle
While a new electric vehicle (EV) costs more to buy up front, today most drivers in the UK...More...