Universal Credit claimants to keep more wages Many employed and self-employed people claim Universal Credit as they have low or unpredictable levels of income. It provides a much needed top-up to their earnings but the benefit is reduced as the worker earns more due to the Universal Credit taper rate. Currently the taper rate is […]
HMRC have announced they will delay the introduction of MTD for sole traders and landlords until the 6th April 2024. This is good news as MTD for Income Tax Self Assessment (MTD ITSA) will cause additional time and costs to be able to file quarterly reports to HMRC. However, do not confuse this with the […]
Going digital in advance of MTD From 6 April 2023 all unincorporated businesses will have to keep their business records in a digital format and submit quarterly reports derived from those records to HMRC using MTD-compatible software. These are the basic obligations under making tax digital for income tax self assessment (MTD ITSA). The start […]
From 6th April 2023 the self-employed, and certain landlords, will need to start reporting their income to HMRC on a quarterly basis. The Office for tax simplification is also looking to have all partnerships and sole traders change their accounting date to 31st March or 5th April if their current accounting date is different to […]
If you are thinking about retiring in the near future and you have a good management structure that already runs the business for you, or can be trained to do so, then you could consider having the employees buy the company from you via an ‘Employee Benefit Trust (EBT)’. There are tax breaks both for […]
HMRC has published a policy paper covering the fifth SEISS grant; more detailed guidance will soon be available but the amount ( to cover the period May 2021 to September 2021) will be determined by how much turnover has been reduced in the 2020/21 year: Turnover Reduction Rate Applicable Maximum Grant 30% or more reduction […]
This year we have seen an increase in business people contacting us regarding obtaining a mortgage. So far so good, however the problem is that they have been using an unqualified accountant. This has only been discovered when the mortgage company rejected their accounts on the basis they had not been prepared by an accountant […]
Beware of mini umbrella companies Umbrella companies employ temporary workers such as contractors on behalf of employment agencies or very large companies. The umbrella company will operate the payroll and makes money by taking a cut of the fees earned by the individual. An umbrella company should provide each worker with an employment contract and […]
Following the recent budget, it appeared that owners of furnished holiday lets (FHL) would be able to use the new extended loss carry back provisions. This would have allowed losses to be carried back three years during a specific time period. Unfortunately, the Finance Bill 2021 has been tweaked and does not allow FHL businesses […]
IDEAL SALARY FOR 2021-22 As the owner and director of your own company you decide how much salary to take each year. We can help confirm what the optimal salary is for you in 2021-22. Paying yourself a small salary can be a good way to maintain your national insurance record to build up state […]