How do capital allowances reduce your tax bill? Autumn Statement update

Generally speaking, the business expenses you incur are allowable against your profits. But when it comes to fixed asset purchases (items such as machinery, equipment or vehicles), these purchases are treated slightly differently. To reduce your tax bill when purchasing fixed assets, it is important to know what capital allowances are available and how you […]

Tax implications of cryptocurrency: understanding the basics

Crypto assets are a type of digital or virtual currency that use cryptography for security. They are typically built on blockchain technology which is a decentralised and transparent ledger of all transactions. The most well-known crypto asset is Bitcoin which was introduced in 2009. Since then, thousands of other crypto assets, often referred to as […]

New corporation tax rate from April 2023

How are UK corporation tax rates set to change? From 1 April 2023, the rate of corporation tax changes from 19%, to introduce a ‘small profits rate’ of 19%, a ‘main rate’ of 25% and reintroduces ‘marginal relief’ for those where profits fall between £50,000 and £250,000, to ensure these companies will pay an overall […]

Super-deduction ending in March 2023

What is the super-deduction tax relief? Introduced in the March 2021 Budget, the capital allowances super-deduction allows companies to claim back 130% of the purchase price of qualifying plant and machinery items purchased between 1 April 2021 and 31 March 2023. Companies are also able to claim a 50% first-year allowance (FYA) for qualifying special […]

Basis Period Reform – for sole traders and partnerships

Are you self-employed, or a partner in a trading partnership? If so, you should be aware of how the ‘basis period reform’ may affect you. HMRC is moving from a ‘current year’ basis to a ‘tax year’ basis. For affected businesses (those that don’t have a year-end of 31 March or 5 April), this could […]

Making Tax Digital for Income Tax Self-Assessment – pushed back to 2026

Making Tax Digital is the government’s initiative for digitising and streamlining the tax return process. VAT-registered businesses are already submitting quarterly VAT returns digitally to HMRC. The good news is that HMRC has pushed back the start date of the next stage of MTD – the introduction of Making Tax Digital for Income Tax Self Assessment (MTD […]

What are the tax benefits of using a company van?

This article will cover van benefits in kind (BIK) for employees and directors. HMRC offers a range of tax options which are dependent on how a van is used by a business. If a van is used solely for business journeys or as a pool van, you do not have to report or pay anything. […]

Changes to Capital Gains Tax for separation and divorce from 6th April 2023

Changes to Capital Gains Tax (CGT) for separation and divorce from 6th April 2023 as outlined in the government’s policy paper: Capital Gains Tax: Separation and Divorce. From 6th April 2023, separating spouses or civil partners will be given up to three years from the year they cease to live together in which they can […]

Tax on gifts to employees and directors

Not sure about the tax implications of giving gifts to your employees? We’ll help you draw up internal guidance to make sure any gifts don’t unintentionally fall outside HMRC’s Trivial Benefits rules. Can directors and employees receive gifts from the company tax free? Giving gifts to your employees can be a great way to increase […]

Electric Vehicle Corporation Tax Explained (2022 Guide)

Electric vehicles are rapidly changing the face of the automotive industry, and with the impacts of increased accessibility, environmental awareness and the rapid hike in fossil fuel costs, the number of electric vehicles globally reached 6.6 million by the end of 2021, compared with the measly 14,260 from ten years ago. The Climate Change Committee […]

Changes to Inheritance Tax reporting requirements

On 23rd March 2021, the Government announced changes to Inheritance Tax reporting requirements for non-taxpaying estates. The new regulations came into force on 1st January 2022 and apply to deaths occurring on and after that date. This article will detail how the new regulations will work and to whom they will apply.   What is the main […]

National Insurance and dividend tax increase from April 2022

1.25% increase to National Insurance contributions (NIC) and dividend tax rates from 6th April 2022.   Who will be affected by the NIC increase and why? In an effort to pay for the impact of the COVID-19 pandemic on the NHS and health and social care systems, the Prime Minister has announced a 1.25% increase […]