Navigating tax rules for gifts to employees and directors

Giving gifts to your employees can be a great way to increase engagement and raise the overall morale of your team, but how much can you give before tax is incurred? And how do the rules differ if you are giving gifts to your directors? In the UK, giving gifts can potentially attract tax liabilities […]

Class 2 NIC payments incorrectly refunded by HMRC

Several reports to the Association of Taxation Technicians have highlighted unexpected refunds of voluntary Class 2 National Insurance Contributions (NICs) that were paid for the 2022/23 tax year, potentially having a detrimental effect on those self-employed individuals, who made voluntary payments, and had profits under £6,725. For voluntary Class 2 NICs to apply and provide […]

Could you be eligible for Marriage Allowance?

Marriage Allowance enables you to transfer £1,260 of your personal allowance (usually £12,570) to your husband, wife, or civil partner provided neither of you are a higher rate or additional rate taxpayer. By doing so, this reduces their tax by up to £252 in the tax year. Who is eligible?  To qualify for Marriage Allowance, […]

Have you received your full entitlement of tax relief on your pension contributions?

Most occupational pension schemes (e.g. employer operated pension schemes) typically deduct contributions under Net Pay Arrangements and personal pension schemes will make deductions under ‘Relief at Source’. However, it should be noted that this is not always the case. For example, Nest, the Government-backed workplace pension scheme, operates a Relief at Source scheme, and many […]

Recent HMRC developments and changes to Class 1 NICs for motoring expenditure

The Upper Tribunal case of Wilmott Dixon and Laing O’Rourke put the spotlight on HMRC’s interpretation of the definition of ‘relevant motoring expenditure’ (“RME”) and the disregard for Class 1 NICs. Historically, HMRC has taken a relatively narrow view on the type of motor expense payments that qualified as RME, with the Upper Tribunal taking […]

Update: HMRC cracks down on taxable side hustle earnings from online sales

The term “side hustle” is commonly used to describe any part-time endeavour with the intention to generate additional income alongside your main job, and these activities can be carried out on a large variety of marketplaces including Etsy, Airbnb, Depop, and many more.   What are the recent developments regarding side hustles? This is not […]

Are employee parties tax-free?

If the rules around social functions are followed, employee events like your end-of-year party, or your summer barbecue are tax-deductible for you, as the employer, and tax-free for your staff. Whether your party is taking place in the office, at a local restaurant or via Zoom for your remote-working teams, you can be confident that […]

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 […]