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 […]

What is an Employee Ownership Trust?

What is an Employee Ownership Trust? Employee Ownership Trusts (EOTs) were introduced by the Finance Act 2014 and enable business owners to sell their shares to an employee-owned trust. As well as providing significant tax incentives, this form of ownership enables shareholders to exit their business where there is no obvious third party purchaser, whilst […]

Information on the rates of Plastic Packaging Tax

Information on the rates of Plastic Packaging Tax The introduction of the Plastic Packaging Tax (PPT) came into effect on 1 April 2022.  This article provides an overview of the principles of how the tax works, and who it could impact in the UK.   What is the current and historic rates of Plastic Packaging […]

Should I buy a property through my business?

There are multiple reasons why you might want to buy a property through your business. You may need a bigger workspace to expand your business operations. You might want to own your current rented property. Or you may be thinking about starting a property investment portfolio.   Whatever your reasons, buying a property through a […]

R&D Tax Relief – what has changed?

The tax relief scheme for research and development (R&D) is an important way to cut the costs of investing in R&D, development projects and innovation across your business. However, the Spring Budget 2023 has brought in several changes to the scheme that will affect small and medium enterprises. These changes affect both the scope and […]

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 splitting property income between co-owners?

If your property is jointly owned by two or more people, there can be tax advantages to splitting any profits you make between you and your co-owner/s. Splitting the profits helps you distribute the profits in a way that favours any co-owners with a lower marginal tax rate – whether that be your wife, husband, […]

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. […]