We’re ready, are you? HB Accountants recognise that it’s demanding for people to know what to do to comply with the new MTD requirements. It’s a common misconception that businesses think they don’t have to do anything since they’re already submitting their tax returns online. Unfortunately, that’s not the case as all your online submissions, be it accounts or spreadsheets, must now directly interlink with the HMRC system.(more…)
If you’re running a business, it’s as important to understand the type of business expenses you cannot claim against tax as those you can. Deductible expenses are those where making a purchase is essential for your business operation. Non-tax-deductible expenses on the other hand, are those that are not necessary for the operation of your company. (more…)
The government has announced that all measures dropped from the Finance Act will be reinstated in a Second Finance Bill which will be introduced as soon as possible after MPs return to parliament in September.
All policies originally announced to start from April 2017, including the significant changes to the taxation of non-domiciled individuals and loss relief for companies, will be effective from this date.
The government has also confirmed an amendment to the implementation of Making Tax Digital (‘MTD’). Under the reformed timetable from 2019, businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records, for VAT purposes only. (more…)
We have for several years been reminding clients that “enjoying” free car fuel from their employer for their private mileage can often be a bad deal.
If, for example, you have a diesel car with CO2 emissions of 140 grams per kilometre, you pay 120 pence per litre for fuel, manage an average of 35 miles per gallon, and are a 40% taxpayer, you would need to drive more than 17,000 private miles during the current tax year before you were better off with the so-called benefit.
If, in the same situation, you are also the owner of the company, there would be the additional cost of Class 1A contributions on the benefit. After corporation tax relief this would cost the company an extra £758 so you would need to clock up private mileage of over 22,000 miles before you were ahead of the game.
Even with a petrol driven car with CO2 emissions of 105 g/km, you would still need to drive more than 11,500 private miles (or 14,500 private miles for the company owner) in order to really benefit from “free” fuel.
With the self-assessment tax return deadline looming, this is the time many freelancers and ‘solopreneurs’ start panicking!
Many find filling in their tax return an onerous prospect and, as a result, it’s traditionally a task which gets left until January, with some only just getting it in on time: in 2016, 385,000 people filed their returns on 31 January, narrowly avoiding the £100 penalty – even so, an anticipated 870,000 returns were still to be filed, which also suggests that hundreds of thousands of people are struggling to do their own returns.
As the next step in abolishing tax returns and replacing them with individual digital tax records, on 15 August 2016 HMRC published a series of consultation documents. These set out some of their ideas and timings, but were open for responses by professionals and businesses until 7 November 2016. The undermentioned points are subject to any amendments which might be made as a result of the consultations. (more…)
Following on from today’s budget, see below the main points from HB’s tax specialist. (more…)
Did you know that there are a whole host of tax benefits currently available for UK entrepreneurs? If you’re just starting out on a new business venture it’s highly advisable to research tax tips for UK entrepreneurs to not only ensure you are following best practice when it comes to your financial accounts, but you are also making the most of any tax benefits available.
From experience, expert tax advice for UK small business owners is always welcomed when delivered but more often than not, it is infrequently asked for. As a small business owner it’s more than understandable that other priorities can sometimes take precedence over company accounts. After all, there is always so much to do such as building brand awareness, gaining new customers and growing your customer base. (more…)