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Items from 2021

How the UK Autumn budget 2021 can affect your business

02

November

How the UK Autumn budget 2021 can affect your business

Chancellor Rishi Sunak announced the UK’s 2021 Autumn budget this week, setting out the government's tax and spending plans for the next fiscal year. The new budget focuses on higher wages and productivity in order to tackle the ‘post-Covid’ era with an optimistic mindset. The Autumn budget 2021 includes several initiatives that affect small and medium businesses. Here’s a closer look at some of the budget changes and how they can affect your business.

60 day rule for Capital Gains Tax on residential properties explained

31

October

60 day rule for Capital Gains Tax on residential properties explained

Although you might have heard of Capital Gains Tax before, you may not be quite sure what it is. In general terms, it is a tax charged when you sell any capital asset which has risen in value over the time you own it. Property is a common example of an asset to which CGT can apply and something to be aware of when selling. It is also worth noting that Capital Gains Tax for properties is calculated using different rates for different types of property. A recent October 2021 change saw CGT on residential properties having to be reported within 60 days of sale completion. In addition, any taxable gains must be paid within 60 days of sale completion too.

Basis period to be abolished in 2022 for the self employed

28

October

Basis period to be abolished in 2022 for the self employed

HMRC is set to abolish the basis period in 2022 for the self-employed which could impact the income payments of sole traders, freelancers and the self-employed. These changes are intended to bring the filing dates for the Making Tax Digital for income tax (MTD) plan. In essence, this means that many taxpayers will have to pay more in their 2022/23 tax bill.

National Insurance Increase From April 2022

01

October

National Insurance Increase From April 2022

The new rise in National Insurance contribution has been making headlines and this extra tax increase was one of a number proposed by the government in order to cover the increasing costs of the NHS and social care. The National Insurance contribution is a payment all workers make to cover the NHS, social care, the state pension and more. All employees who are over 18 and earning over £184 a week, or if they are self-employed and earning more than £6515, pay National Insurance and the payment stops when they retire. As of 6th April 2022, the annual National Insurance contribution will rise by 1.25% and this will affect millions of workers in the UK.

Super-deduction tax break

01

July

Super-deduction tax break

The UK government has announced a new tax break for companies investing in qualifying plant and machinery assets, allowing them to cut down their tax bills and invest in equipment that will drive growth. What is the super-deduction tax break?

New tax rules on company vehicles and capital allowances

11

May

New tax rules on company vehicles and capital allowances

Many businesses around the UK operate a fleet of company cars which play an integral role in their success. While some companies may be moving towards making their fleet electric, not all are ready to do this just yet. If you do need to replace company cars soon though and plan to go for non-electric, you should know about the latest Government legislation. This saw changes to capital allowance tax rules come into force for organisations from 1st April 2021 and from 6th April 2021 for sole traders/partnerships.

VAT cash accounting and the VAT reversal charge

21

April

VAT cash accounting and the VAT reversal charge

The Cash Accounting VAT Scheme is a way of reporting VAT when the VAT is recorded through any payments that are made or received. Much like regular cash accounting, income gets recorded when it has been received and expenses are also recorded across the period that they are paid. The scheme enables you to pay VAT on your sales when you have been paid by a customer. It also enables you to reclaim any VAT from your purchases when your supplier has been paid. The VAT Reversal Charge is a scheme handling VAT for building and construction services across the UK. More specifically, sub-contractors require the contractor that employed them to handle and pay the VAT directly to HMRC, for the services that they have provided. The scheme now means that those providing building and construction services to customers who are VAT registered no longer account for the VAT.

What you should know about income tax and NIC rates and thresholds for 2021/2022

18

March

What you should know about income tax and NIC rates and thresholds for 2021/2022

The UK has recently released guidance and information regarding income tax and NIC rates and thresholds for the new year. This 2021 budget includes support for businesses and employers that are struggling as a result of the coronavirus pandemic.

The Budget 2021 and Small Businesses

10

March

The Budget 2021 and Small Businesses

With the 2021 Budget freshly announced, small businesses across the UK may be wondering exactly what this means for their corporation tax, SEISS eligibility, and more. We look at some of the most relevant parts of the Budget for 2021 and how they apply to small businesses in Melton Mowbray and beyond:

What you need to know about making tax digital for VAT and income tax

09

March

What you need to know about making tax digital for VAT and income tax

If you hadn’t heard already, the UK government has recently released an initiative to make preparing, reporting and filing taxes much easier and faster. HMRC’s ambition is to become one of the most digitally-advanced tax administrations in the world. Hopefully, the changes will allow tax administrations to become more effective, efficient and streamlined.

How to make self-assessment and Class 2 NI payments

05

March

How to make self-assessment and Class 2 NI payments

Any self-employed sole trader or partner in a business knows how crucial sending off a completed self-assessment for tax is. Of course, once you have done this, you are then faced with the prospect of paying your tax bill. Although this might sound easy, making your self-assessment payments (including any Class 2 National Insurance contributions) can be confusing at times.

IR35 reforms due to come in from April 2021

25

February

IR35 reforms due to come in from April 2021

There is no denying that the IR35 off-payroll rules have presented a challenge to many contractors and intermediaries in recent times. Key to understanding how they work is keeping up with the latest changes to the rules. This makes the amendments due to come into effect from 6th April 2021 crucial to take account of.

Construction Industry Scheme (CIS) VAT Reverse Charge

19

February

Construction Industry Scheme (CIS) VAT Reverse Charge

1 March 2021 will see changes introduced which overhaul the VAT treatment for certain construction services in the UK. These changes had been due to come into force on 1 October 2020 but were delayed by HMRC for five months as a result of the impact the coronavirus pandemic has had on the construction sector.