News

UK Infrastructure Bank set-up
19/05/2022 - More...
The UK Infrastructure Bank Bill, announced as part of the measures in the Queen’s speech, represents the final step in setting up the UK Infrastructure Bank as an operationally independent institution. The new Bank officially opened for business in June 2021 but the Bill will remove legal obstacles so the Bank can lend directly to local

Free company information
19/05/2022 - More...
There is a significant amount of information about companies that can be obtained from Companies House. Companies House is responsible for incorporating and dissolving limited companies, examining and storing company information and making company information available to the public. Much of this information is available at no cost. This

VAT – discounts and free gifts
19/05/2022 - More...
When you issue an invoice to your customer, you must ensure that you charge the correct rate of VAT. Whilst most businesses in the UK charge VAT at the standard rate of 20% there are a number of different VAT rates and exemptions that you should be aware of. In the UK, there are three separate VAT rates, the standard rate @ 20%, the

Intrastat – trading goods with EU
19/05/2022 - More...
Intrastat declarations were historically used to collect information on the movement of goods from the UK to other EU countries and vice versa. Any business that exceeded the exemption threshold for either arrivals or dispatches of goods were obliged to submit monthly returns. This changed following Brexit and there were further changes

Corporation Tax – reminder HMRC contact details
19/05/2022 - More...
HMRC can be called by phone on 0300 200 3410 for help with general Corporation Tax enquiries. You will need your 10-digit Unique Tax Reference (UTR) when calling HMRC and this reference number cannot be provided over the phone. The UTR is the primary identifier for a company and should be used whenever HMRC is contacted. The number can

Access to cash protection increased
18/05/2022 - More...
The new Financial Services and Markets Bill, announced as part of the Queen's speech, will provide increased protections for those still dealing with cash. Access to cash remains vital for many people across the UK, including the more vulnerable in society. The government has committed to preserving the use of cash as an option even as

Reminder to look out for tax credit renewal packs
12/05/2022 - More...
HMRC is currently sending the annual tax credit renewal packs to some 2.1 million tax credit claimants and is encouraging recipients to renew their tax credits claim online. HMRC started writing to taxpayers at the end of April and expects all packs to be with recipients by 27 May 2022. A renewal is required if the pack has a red line

Holiday lets occupancy check
12/05/2022 - More...
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

When you are required to register for PAYE
12/05/2022 - More...
There are a multitude of rules that new businesses must follow when they start employing staff for the first time. These include ensuring registering for PAYE as an employer with HMRC. This must be done before the first payday and this process must even be completed by directors of a limited company who are employed by the company. There

ISAs 2022-23
12/05/2022 - More...
The maximum amount that can be invested in an ISA in the current (2022-23) tax year is £20,000. ISA’s are a valuable and flexible relief and should be considered as an option for most investors. An ISA is a tax-exempt savings account available to UK residents. Whilst the amount invested in an ISA does not benefit from tax relief the

Structures and Buildings Allowances
12/05/2022 - More...
The Structures and Buildings Allowances (SBA) allows for tax relief on qualifying capital expenditure on new non-residential structures and buildings. The relief applies to the qualifying costs of building and renovating commercial structures. The relief was introduced in October 2018 at an annual capital allowance rate of 2% on a

Income excluded from a property business
12/05/2022 - More...
HMRC publishes a list of income streams that are excluded from a UK property business. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in your own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will be

Mortgage interest on rented property
05/05/2022 - More...
Under new rules that came into effect from April 2017 the tax relief on mortgage costs for residential landlords was restricted to the basic rate of tax. The finance costs restriction was phased in over a number of years and is now fully in place since 6 April 2020. This means that all finance costs, such as mortgage interest on rented

Builders – when you may not have to charge VAT
05/05/2022 - More...
VAT for most work on houses and flats by builders and similar trades, like plumbers, plasterers and carpenters, is charged at the standard rate of 20%. However, there are a number of exceptions where special VAT rules apply and a reduced or zero rate of VAT may apply. A builder may not have to charge VAT (zero rate) on some types of

Tax benefits of switching to electric cars
05/05/2022 - More...
There are many benefits to encourage the use of electric cars including lower running costs, the environmental advantages and reduced noise pollution. There are also tax benefits to encourage the purchase of electric cars. We have listed some of these benefits below. The benefit-in-kind (BIK) due on company cars can be significantly

Writing off a director’s loan
05/05/2022 - More...
An overdrawn director's loan account is created when a director (or other close family member) 'borrows' money from their company. Many companies, particularly 'close' private companies, pay for personal expenses of directors using company funds. Where these payments do not form part of a director’s remuneration, they are usually posted

Exchange of joint interests
05/05/2022 - More...
HMRC’s internal manuals consider the reliefs available where there is an exchange of joint interests in land. The manuals state that: The exchange of interests in land which are jointly owned by two or more persons constitutes a disposal by each owner for Capital Gains Tax purposes. In some cases, the exchange is made simply to

IHT business asset relief
05/05/2022 - More...
There are a number of reliefs available that can reduce liability to IHT if you inherit the estate of someone who had died. One of these reliefs is known as Business Relief and is a valuable tax relief for taxpayers with business interests, offering either 50% or 100% relief from IHT on the value of the business assets if certain

Reclaiming VAT
28/04/2022 - More...
For most fully taxable businesses, VAT can be reclaimed on goods and services used in the course and furtherance of their business activities. This means that businesses must consider where there is personal or private use of goods or services bought for the business and can usually only reclaim the business proportion of any VAT

Tell HMRC if your company is dormant
28/04/2022 - More...
If a company has stopped trading and has no other income, then the company is usually classed as dormant for Corporation Tax purposes. A company is usually dormant for Corporation Tax if it: has stopped trading and has no other income, for example investments is a new limited company that hasn’t started trading is an unincorporated

PAYE settlement agreements
28/04/2022 - More...
A PAYE Settlement Agreement (PSA) allows employers to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for their employees. The expenses or benefits included in a PSA must belong to one of the following categories; minor - e.g., a small birthday

Accountancy expenses arising out of an enquiry
28/04/2022 - More...
HMRC’s internal manual offer some revealing insights as to the treatment of accountancy expenses arising out of an enquiry. As a matter of course, HMRC allows companies to claim a tax deduction for normal accountancy expenses incurred in preparing accounts or accounts information and in assisting with preparing Self-Assessment tax

Check which EORI number is required
28/04/2022 - More...
The Economic Operators' Registration and Identification System (EORI) was setup as a European Union (EU) wide initiative that helps businesses communicate with customs officials when they are importing and exporting goods. The EORI allows businesses to provide pre-arrival/pre-departure information for goods. Following the end of the

Tax Diary May/June 2022
26/04/2022 - More...
1 May 2022 - Due date for corporation tax due for the year ended 30 July 2021. 19 May 2022 - PAYE and NIC deductions due for month ended 5 May 2022. (If you pay your tax electronically the due date is 22 May 2022). 19 May 2022 - Filing deadline for the CIS300 monthly return for the month ended 5 May 2022. 19 May 2022 - CIS tax

 

Latest News

UK Infrastructure Bank set-up
19/05/2022 - More...
The UK Infrastructure Bank Bill, announced as part of the measures in the Queen’s speech, represents the final step in

Free company information
19/05/2022 - More...
There is a significant amount of information about companies that can be obtained from Companies House. Companies House

VAT – discounts and free gifts
19/05/2022 - More...
When you issue an invoice to your customer, you must ensure that you charge the correct rate of VAT. Whilst most

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