Sunak springs surprises The Chancellor presented two Budgets in 2021 in which he set out a great many details of the tax rates and rules that will apply until April 2026. The 2022 Spring Statement was expected to review the economic situation and adjust forecasts, but was not supposed to include anything significant about tax. […]
MTD for VAT is compulsory For VAT periods starting on and after 1 April 2022 all VAT records must be recorded digitally and returns must be submitted under the Making Tax Digital (MTD) regime. If you are not already submitting your VAT returns using MTD-enabled software (or asking us to do so) you need to […]
If you have set up your Government Gateway account you can now ‘self-serve’ to make arrangements to pay your tax bill by instalments. The conditions for this are: You have filed your 2021 tax return What you owe is less than £30,000 You are within 60 days of the payment deadline Can pay it off […]
New MTD filing penalties Filing VAT returns using making tax digital (MTD)-compatible software will be compulsory for all VAT registered traders for periods beginning on or after 1 April 2022 unless HMRC agrees that the taxpayer is exempt. Sole traders will also have to file quarterly and annual income tax reports using MTD software from […]
The question we always get asked is “should I buy this rental property in my name or a limited company?”. The answer is no longer straight forward and will depend on your individual circumstances and it is not just about the tax. People started buying residential investment properties in limited companies to avoid having the […]
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 […]