Tax exempt ways to treat your employees this Christmas
Gifts which qualify as trivial benefits Seasonal gifts may include a Christmas hamper, a bottle of wine, a spa voucher, or tickets to various events of the employee’s choice such as arts or sports venues. If a gift meets the following conditions, it should qualify as a trivial benefit: Both employer and employee are exempt […]
Taking climate action: Electric Vehicles Salary Sacrifice Scheme
This is why we expect there to be a rise in the number of EV salary sacrifice schemes introduced by employers over the next few years, which make leasing EVs much more affordable for employees with no upfront costs. How does it work? An EV salary sacrifice scheme lets an employee pay for an electric […]
Capital Gains Tax (CGT) return on UK residential property disposal – deadline extension
This will apply to UK residential property disposals completed on or after 27 October 2021. Disposals before that date still need to meet the 30-day requirement. In the case of mixed-use property disposed of by a UK resident, the 60-day reporting and payment window only applies to the residential element of the gain. The deadline […]
Valuable tax relief through the Enterprise Investment Scheme
As the tax reliefs are so generous, there are strict rules for both the company and individual, some of which are as follows: Individual Company A company can apply to HMRC for advance assurance so there is certainty for investors that it qualifies for EIS/SEIS. It is strongly recommended that advance assurance is authorised before […]
A Reminder – Reporting deadlines and requirements
HMRC do not issue Paper Returns automatically to encourage electronic filing by 31 January following the year-end (31 January 2022 for 2020/21 Tax Returns). Extensions to the Reporting Deadline If your notice to file a Return was issued after July 2021 the deadline for filing a Paper Return is extended to 3 months following the […]
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA)
In a recent statement the Treasury has announced that MTD for ITSA will be pushed back to 6 April 2024 in order to provide more time for taxpayers to make the necessary preparations and allow continued testing of the pilot. In view of the limited guidance issued to date on the new system and the pressures […]
The Fifth Self Employed Income Support Scheme (SEISS) Grant
HMRC invited claims to be made from late July 2021 in a similar way to the fourth SEISS grant. Claims must be submitted online and are subject to a deadline of 30 September 2021. The grant is available to those who were unable to claim the first three grants, and it covers the trading period […]
HMRC proposes changes to the way trading income is allocated to tax years
The government has recently published draft legislation that looks to align all basis periods for unincorporated businesses with the tax year. The proposed changes were due to take effect from 2022/23 onwards, however, in a recent written statement the Treasury has announced that these changes will be pushed back by 12 months. Whilst this creates […]
Changes to Dividend and NIC Rates
Dividends Under the plans investors can still earn up to £2,000 each year in dividends and suffer a zero rate of tax. However, from the 2022/23 tax year onwards, the current rate will rise as follows: Currently up to £2,000 0% Basic rate 7.5% Higher rate 32.5% Additional higher rate 38.1% From 2022/23 up to […]
Don’t miss out on tax relief for capital expenditure in your business
You will recall from our article last year that the Treasury announced a temporary extension to the £1 million cap for the Annual Investment Allowance (AIA) until 1 January 2022. This means that a business will be entitled to a 100% allowance on eligible expenditure up to 31 December 2021 subject to the £1 million […]
