Capital gains tax (CGT) is the tax on the profit you make when you sell or ‘dispose of’ an asset that has increased in value during your ownership. It is important to note that the tax is levied only on the gain made from the sale, not the total sale price.
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Tax deadlines and penalties for limited companies
Managing a limited company requires meticulous attention to regulatory obligations, particularly with regard to tax and accounting. Financial compliance is punctuated by a series of key deadlines and potential penalties for non-compliance, demanding a proactive and informed approach from company directors.
This guide delves into the intricacies of these obligations, offering a comprehensive overview to help ensure your company remains in good standing.
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Personal tax planning in 2024/25
As we step into the 2024/25 tax year, it’s now more important than ever to take a proactive approach to managing your
personal finances.
Whether you’re navigating the complexities of income tax, considering investment opportunities or planning for your future, understanding the nuances of the UK tax system can help you make informed decisions.
This guide is crafted with you in mind, offering clarity and actionable advice to help you optimise your tax position and secure your financial wellbeing.
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YEAR-END TAX GUIDE 2023/24
The conclusion of the 2023/24 tax year prompts us to reflect on some of the notable developments in the fiscal landscape.
This past year has been marked by ongoing efforts to recover from the economic impact of the global pandemic. Inflation has emerged as a significant concern, influenced by persistent disruptions in the supply chain and geopolitical tensions.
To address these economic challenges, the Government has adjusted tax policies to balance revenue generation with support for businesses and individuals.
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NEWS ROUND-UP: DECEMBER 2023
Included in this month’s article:
– UK ACCOUNTANTS DEMAND HMRC SERVICE IMPROVEMENTS
– BANK OF ENGLAND HOLDS INTEREST RATES STEADY
– SMALL BUSINESS CONFIDENCE IMPROVES IN Q3 2023
– CORPORATE INSOLVENCIES HIT A TWO-DECADE HIGH
SPOTLIGHT ON: Tax and your work Christmas party
As 2023 draws to a close, many employers will be looking for ways to reward their teams’ hard work. But how can you do that in a tax-efficient way that benefits both you
and your employees?
Thankfully, showing your appreciation doesn’t need to cost the earth. In most cases, work Christmas parties and gifts for staff members are tax-deductible.
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SPOTLIGHT ON: Self-assessment
The UK self-assessment system has its quirks and nuances, and understanding how to stay compliant is crucial to a smooth and stress-free income tax process.
From early paper deadlines to penalties for late-filers, self-assessment holds a few surprises. As always, a professional accountant can help you navigate the process successfully, make the most of available tax reliefs, and avoid potential pitfalls along the way.
Read MoreTax Insider October 2023
Included in this month’s article:
– HMRC REOPENS SELF-ASSESSMENT HELPLINE
– EMPLOYERS RAMP UP COUNTER-OFFERS TO RETAIN STAFF
– ONS REVISES ITS FINDINGS AND SAYS ECONOMY ACTUALLY GREW IN 2021
– CHANCELLOR ANNOUNCES DATE FOR AUTUMN STATEMENT 2023
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AN INTRODUCTION TO TRUSTS
What you need to know about trusts, including how they are taxed.
Trusts are legal arrangements where assets are placed into the care of an individual or organisation that manages them for the benefit of someone else.
Read MoreA GUIDE TO REGISTERING FOR SELF-ASSESSMENT
If you’ve never had to complete a self-assessment tax return, the first time can be daunting. But don’t worry: we’ll demystify the process in this article. And if you have completed one before, this guide might still teach you a thing or two about doing your self-assessment better.
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IR35: WHAT HAPPENS WHEN IT GOES WRONG?
Contractors and freelancers operate through a private company to enjoy a better tax treatment compared to sole traders — but a more favourable tax position is actually never guaranteed because of off-payroll working rules known as IR35.
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Tax Insider September 2023
INCLUDED IN THIS MONTHS ARTICLE:
– GEOPOLITICS PROMPT IMPORTERS TO ALTER SUPPLY CHAINS
– UK GROWS BUT REMAINS IN ‘PRECARIOUS PLACE’
– PAY GROWTH ENDS 18-MONTH WAGE SQUEEZE
– ONE MILLION MORE PULLED INTO TAX ON SAVINGS
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Tax Insider August 2023
INCLUDED IN THIS MONTHS ARTICLE:
- R&D TAX RELIEF CRACKDOWN ‘DETERRING GENUINE CLAIMS’
- UK ECONOMY REMAINS ON SHAKY GROUND
- CALL WAIT TIMES TO BE INCLUDED ON HMRC HELPLINES
- HMRC HAS ‘ENORMOUS AMOUNT OF WORK’ TO DELIVER MTD ON TIME
Tax Insider June 2023
Included in this month’s article:
- Government launches cryptoassets consultation.
- Tax take soars by almost 10%
- ICAEW calls MTD quarterly reporting “disproportionate”
- Government extends VAT exemption for pharmacists
FULL EXPENSING: THE NEW CORPORATION TAX INCENTIVE EXPLAINED
In his Budget speech in March earlier this year, Chancellor Jeremy Hunt kicked off the Government’s plan for growth with changes to business tax legislation, a key policy being ‘full expensing’.
(more…) Read MoreTax Insider May 2023
Included in this months article:
- HMRC releases guidance on LTA abolition
- Digital service tax could become permanent
- New business rates bill aims to “Let communities thrive”
- HMRC U-turns on paper only self assessments
Government Gateway and Pensions
HMRC is increasingly using the online tax accounts, or Government Gateways to allow you to access your tax information and forms such as tax calculations for mortgages.
(more…) Read MoreTax Card 2023/24
Here is your new tax card.
(more…) Read MoreTax Insider April 2023
Included in this month’s article:
- Finance sector increases female representation
- Government extends voluntary NI deadline
- Chancellor removes lifetime pension limit
- Super-deduction replaced by “full expensing”
TAX RELIEF ON PENSIONS
Tax relief is one of the best features of using a pension to save for retirement.
When you pay into your pension, some of the money that would have gone to the Government as tax goes instead into your pension pot, which can help reduce the amount of tax you pay and boost your savings.
Read MoreMTD FOR ITSA: WHAT YOU NEED TO KNOW
Making Tax Digital for income tax self-assessment (MTD for ITSA) was originally set to roll out in 2018, but the road to personal tax digitalisation has been relatively rocky to date.
(more…) Read MoreTax Insider March 2023
Included in this month’s article:
- Bank of England raises interest rate to 4%
- Over 300,000 taxpayers miss self-assessment deadline
- Chancellor outlines four ‘Es’ for economic growth
- Calls for R&D reforms to be paused
Year-End Tax Guide 2022/23
2022/23 has been the third of extraordinary tax years in the modern era. While 2020 and 2021 saw the heights of the pandemic, 2022 saw a surge in inflation mainly due to the continued supply chain issues after Covid, Russia’s war on Ukraine and rising energy prices.
CORPORATION TAX IN 2023
After multiple policy U-turns and much uncertainty, the main rate of corporation tax will rise from 19% to 25% from 1 April 2023, affecting companies with profits of £250,000 and over.
The legislation provides that small companies with profits up to £50,000 will continue to pay corporation tax at 19%, with profits between the two limits being subject to a tapered rate.
Tax insider February 2023
Included in this month’s article:
- Chancellor reveals new energy discount for businesses
- Inflation remains a key concern for business
- MPs call fro urgent improvements to HMRC’s performance
- Research and development relief guidance under review
Tax Insider January 2023
Included in this month’s article:
– Treasury delays MTD for ITSA until 2026
– Economic outlook remains bleak despite rise in GDP
– SMEs owed £23.4BN in late payments
– Energy price cap removes risk for one in four businesses
INCOME TAX: WHAT’S CHANGING?
A number of changes are coming to income tax in April 2023 that will affect taxpayers across the UK.
Many of these measures were announced by Chancellor of the Exchequer Jeremy Hunt in his Autumn Statement on 17 November. According to Hunt, these decisions will see everyone pay “a bit more tax” from the 2023/24 tax year onwards.
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Tax Insider December 2022
Included in this month’s article:
- Bank of England raises base interest rate
- HMRC reminds taxpayers to declare SEISS payments
- National Insurance increase reversed
- Tax thresholds frozen in Autumn statement 2022
SELF-ASSESSMENT TAX RETURNS
With the new year just around the corner and tax season fast approaching, now’s a good time to get a head start on your self-assessment tax return.
(more…) Read MoreIR35: THE RULES NOW
Late September into mid-October has been a turbulent time for the Government and a confusing time (at best) for taxpayers, after former chancellor Kwasi Kwarteng’s fiscal statement.
(more…) Read MoreTav Insider November 2022
Included in this month’s article:
- Average five-year mortgage rate hits 12 year high
- Inflation rises to 10.1% in September
- Autumn budget delayed
- Business confidence falls significantly
Tax Insider October 2022
Included in this month’s article:
- Chancellor announces biggest tax cuts in 50 years
- Bank of England predicts the UK to enter recession this year
- COVID loans scheme hit by over £1BN in suspected fraud
- MTD for VAT penalties begin from November
HMRC UPDATES MTD GUIDANCE
After much anticipation from accountancy bodies and businesses, HMRC has finally updated its guidance on Making Tax Digital (MTD), filling in several blanks.
(more…) Read MoreInsider September 2022
Included in this month’s article:
- Band of England raises interest rates to 1.75%
- Energy bill support to be split over six payments
- Help to grow scheme extends to smallest businesses
- Capital gains tax rules for divorced couples ease
Tax Insider August 2022
Included in this months article:
- Lack of awareness of tax liability among crypto investors
- HMRC: Businesses don’t think MTD applies to them
- Self employed struggling with tax obligations
- Bank of England focusses on returning inflation to 2% target
HOW HMRC CONDUCTS TAX INVESTIGATIONS
HMRC recently announced new powers to investigate companies they suspect of evading taxes, so as a business owner, you might be worrying about what happens if your company comes under scrutiny.
(more…) Read MoreTax Insider July 2022
Included in this month’s article:
- Government overhauls audit scheme
- National insurance threshold increases
- Recovery loan scheme comes to an end
- Taxpayers not ready for making tax digital
THE TAX BENEFIT FOR INNOVATIVE COMPANIES
Research and development (R&D) tax credits were once a little known tax incentive for companies which invested in innovation. But after rule changes in recent years, and a push by many tax advisers, they are now much more widely understood and used.
(more…) Read MoreTax Insider June 2022
Included in this month’s article:
- HMRC raises interest rates on late tax payments
- Work from home tax relief may not be available in 2022/23
- Bank of England raises interest rate to 1%
- SMEs unprepared for MTD rollout
Tax Insider May 2022
Included in this Month’s article:
- IR35 Reform Landing Period Ends
- New Law to Resolve Covid Rent Debt
- National Insurance and Dividend 1.25% Uplift Underway
- MTD for VAT rolls out to all VAT-Registered Businesses
Tax Insider April 2022
Included in this month’s article:
- Over one million individuals use extra time to file tax returns.
- Economic forecasts dampen for 2022
- House of lords raises concerns over IR35
- Government launches onlines sales tax public consultation
PERSONAL TAX CHANGES FOR 2022/23
By the time you’re reading this, the new tax year is either just about to start or has already started. Some of the changes have been public knowledge for months now and some of the rises have been anxiously awaited as the country continues to face a cost-of-living squeeze.
(more…) Read MoreCRYPTOASSETS: HOW ARE THEY TAXED IN 2022?
Cryptocurrencies continue to become more mainstream, and the taxman’s very aware of the gains investors have made in the last five or six years.
(more…) Read MoreTax Insider March 2022
Included in this months article:
- Two million people missed self-assessment deadline
- £50m shot in the arm for the UK’s creative businesses
- HMRC eyes reform of stamp taxes and multiple dwellings
- ‘Ditch NICE increase to free up funds for apprentices’
Tax Card 22/23
Year-End Tax Guide 2021/22
Throughout 2021/22, COVID-19 has continued to dominate. Millions of employees and directors on payroll were furloughed, and the self-employed continued to rely on grants available via the income support schemes.
(more…) Read MoreTax Insider February 2022
Included in this month’s article:
- HMRC waives penalties again for late self-assessment
- Omicron-hit employers can reclaim statutory sick pay
- Treasury’s pensions tax relief bill soars past £42BN
- Deadline looms for new hospitality and leisure grants
UTILISING YOUR PENSION TO CUT INHERITANCE TAX
Inheritance tax was thought to be ripe for reform in last year’s Autumn Budget but, as it happened, it was left untouched for another tax year.
(more…) Read MoreHOW TO EXTRACT PROFITS OUT OF YOUR COMPANY
Tax-efficient advice for limited company directors.
Believe it or not, there are more than 4.7 million limited companies registered in the UK, including the 810,316 incorporations that signed up in 2020/21.
(more…) Read MoreTax Insider January 2022
Included in this months issue:
- HMRC issues last reminder for 2020/21 personal tax returns
- One if four buy-to-let landlords ‘plan to sell up in 2022’
- More red tape for importers as new EU checks kick in
- Report sheds more light on changes to R&D regime