We’ve got you covered with all the latest news and views from KRW


At KRW we always have our finger on the pulse of the latest developments affecting businesses and business owners, as it helps us to give our clients relevant and timely advice.

From changes in tax legislation, through to new grants and allowances, you can rely on us to keep you updated.

More importantly we back this up with practical advice on how to make best use of new tax breaks and incentives to ensure you don’t miss out.

Much of this is delivered through our Tax Bulletin email newsletter which goes out to all of our clients, but is also offered free to non-clients too. Just click on the link below if you’d like to receive it in your inbox.

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Keeping our clients bang up-to-date with tax changes is at the very heart of our ethos at KRW


Keith Witchell
Director | KRW Accountants

Dividend tax rates to increase by 1.25% from April 2022


In a bid to level the playing field with business owners who take lower salaries and supplement their income with dividends which do not attract NIC, the government also announced an increase in dividend tax rates by 1.25% from April 2022.

Read More


Self employed class 4 NIC rates to increase by 1.25% from April 2022


In order to bring parity between employed and self-employed workers, it was confirmed that the 1.25% increase will also be applied to the Class 4 National Insurance rates paid by the self-employed (which includes partners in a partnership or LLP).

Read More


Employer NIC rates to increase by 1.25% from April 2022


Alongside the increase to employee NIC rates, it was also announced that the 1.25% increase will also apply to employer NIC contributions, from April 2022.

Read More


Employee NIC rates to increase by 1.25% from April 2022


The Prime Minister announced that in order to fund wide ranging reform to the health and social care sectors, it would be necessary to increase the rate of National Insurance paid by employees by 1.25% from April 2022.

Read More


Zero tax when selling your business with a holding company


With recent changes to Entrepreneurs Relief (now Business Asset Disposal Relief) many fear that the days are numbered for paying 10% tax when you sell your business.

Read More


What tax and NIC will i owe on the SEISS grants?


Now that we’re into the full swing of preparing 2020/21 Self Assessment Tax Returns, we’ve had a number of clients query their tax bills, which include tax and NIC owed on SEISS grants.

Read More


How to calculate your turnover reduction for the fifth SEISS grant


As set out in our Tax News article, the fifth SEISS grant opens at the end of this month, but this time there are two levels of grant dependent on your reduction in turnover as a result of COVID-19.

Read More


5th coronavirus grant for the self employed opens end of July


Earlier this month, HM Revenue & Customs issued some guidance about the fifth, and potentially final, Self Employed Income Support Scheme grant which kicks off at the end of this month.

Read More


Self employed income support scheme further grants confirmed


The Chancellor confirmed that there will be two further three-month grants for self-employed taxpayers once again set at 80% of past profits, and capped at £7.5k.

Read More


Urgent action needed to spread the payment of deferred vat bills


Almost a year ago, on the eve of the first lockdown, the Chancellor announced that businesses could defer their quarterly VAT liability falling due in April/May/June 2020 until the end of the tax year.

Read More


Optimum salary levels for company owners from april 2021


Every tax year the National Insurance and tax thresholds change, and we think carefully about the most tax efficient salary levels to recommend to company Directors.

Read More


What’s the crack with the super-deduction? what can i use it on?


Rishi Sunak certainly bigged up the new super-deduction in the Budget earlier this month, prompting many clients to get in touch to see how they can benefit from it.

Read More


Changes to self-employed income support scheme 4th and 5th grants


It was confirmed in the Budget earlier this month that two further SEISS grants will be available to self-employed taxpayers whose businesses continue to be adversely affected by Coronavirus.

Read More


New recovery loan scheme announced


With the current Bounce Back and Coronavirus Business Interruption Loan Schemes due to end soon, a new 80% government backed Recovery Loan Scheme has been announced offering loans between £25k and £10 million to support businesses through the next stage of their recovery.

Read More


New restart grants for hospitality, leisure, gyms & non-essential retail


£5 billion has been pledged to fund new Restart Grants which provide a one-off cash grant of up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses in England.

Read More


Business rates relief for retail, hospitality & leisure extended


The current business rates holiday for certain sectors including retail, hospitality and leisure has been extended to 30 June 2021, as expected, with a 2/3rds discount then applied for 9 months up until 31 March 2022, to allow businesses in these sectors time to recover.

Read More


Tax relief for losses extended to allow 3 year carry back


n a bid to help businesses adversely affected by COVID, the usual rules that allow a business to carry back losses for one year have been amended to allow losses made in the 2020/21 and 2021/22 tax years to be carried back and offset against profits in the previous 3 years.

Read More


VAT, capital gains tax, pensions & inheritance tax thresholds also frozen


Alongside the freezing of the tax-free personal allowance and higher rate tax thresholds, the Chancellor also announced that the VAT registration threshold will be frozen at £85k for 3 years, while the Capital Gains Tax annual exemption of £12,300, the pensions Lifetime Allowance of £1,073,100, and the current Inheritance Tax thresholds will be frozen for 5 years until April 2026.

Read More


Stamp duty land tax cut extended


The current £500,000 threshold for Stamp Duty on residential properties that was due to end on 31 March 2021 has been extended to 30 June 2021. After this the usual threshold of £125,000 will be temporarily doubled to £250,000 for a further 3 months up until 30 September 2021.

Read More


VAT cut for hospitality & leisure sectors extended


The current much needed VAT cut to 5% for the hospitality and leisure sectors was due to end on 31 March 2021, but the Chancellor announced earlier today that it will be extended until 30 September 2021, after which it will be increased to 12.5% until 31 March 2022.

Read More


Super-deduction for companies investing their reserves for 2 years


Rishi Sunak announced that from April 2021 until March 2023 a super-deduction will be offered to any companies that invest in new equipment, by allowing 130% of what they invest to qualify for tax relief (currently 100% but subject to limits).

Read More


Furlough scheme extended until 30 september 2021


In better news, the Coronavirus Job Retention Scheme has been extended to 30 September 2021, although businesses will need to contribute 10% of the 80% wages paid to furloughed workers in July, and 20% of their 80% wages in August and September 2021.

Read More


Personal allowance and higher rate tax threshold frozen for 5 years


The Chancellor also announced that the new personal allowance of £12,570 which arrives in April 2021 will be frozen for 5 years until 2026.

Read More


Corporation tax rise to 25% from april 2023


Let’s start with the worst news first. In a bid to rebalance the books post COVID, Rishi Sunak announced a rise in the Corporation Tax rate to 25% from April 2023 which was higher than expected.

Read More


KRW team news: coronavirus business bounce-back loan scheme launches


The government have yesterday launched a new loan scheme for small businesses which is simpler and quicker to access than the existing Coronavirus Business Interruption Loan Scheme (CBILS).

Read More


Furnished holiday lets could get £10,000 covid-19 grants


As part of a package of measures to assist businesses, the Chancellor announced £10,000 grants for businesses that qualify for Small Business Rates Relief.

Read More


Self-employment income support scheme goes live on 13 May 2020


The Coronavirus Self-Employment Income Support Scheme was announced back in March, and gives the self-employed a grant of up to £7,500 if their business has been affected by COVID-19.

Read More


Can a director be furloughed under the job retention scheme?


The Job Retention Scheme allows for 80% of a furloughed employee’s wages to be reclaimed from HM Revenue & Customs, providing they are doing no work for the business.

Read More


Can i reclaim vat if my business purchases a car?


HMRC will usually accept a small amount of incidental private use, for example stopping off for a sandwich on the way back from a business journey, but beyond that they are highly likely to challenge any recovery of VAT on the car’s purchase.

Read More


HMRC release draft guidance on Structures & Buildings Allowance (SBA)


In last year’s Budget, the Chancellor announced the introduction of a new capital allowance for new commercial structures and buildings, known as the SBA.

Read More


KRW team news: Introducing Heather May & Dominic McCabe


Due to our continued growth, and with one of the team retiring, we’ve been on the lookout for another bookkeeper and a Payroll Manager to join our team.

Read More


Salary can be cheaper than dividends for those over state retirement age


Regular readers will know that the combination of a low salary and dividends is usually the most tax efficient way for a Director/shareholder to be paid by their company.

Read More


What tax relief can i claim for working from home?


Most business owners will do some of their work from home, but what tax relief can they claim for this? An unincorporated taxpayer (i.e., a sole trader or partner in a partnership) may be able to claim a proportion of its costs for working from home for things like:

Read More


Changes to VAT on vouchers from 1 January 2019


Changes to VAT on vouchers were introduced on 1 January 2019 for vouchers sold on or after that date.

Prior to this change, the sale of a voucher was treated as two separate supplies for VAT purposes; the supply of the physical voucher or gift card; and the underlying goods/services it can be exchanged for.

Read More


KRW: Your property tax experts


Buy-to-let landlords have been under attack in recent years with the 3% stamp duty surcharge, the restriction of tax relief for mortgage interest, and now changes to letting relief.

Read More


Employment allowance not available to larger businesses from April 2020


The Employment Allowance covers the first £3,000 pa of Employers National Insurance, and is currently available to all but the very smallest employers.

Read More


Save tax by employing your nanny through your company


However, what if you instead employed your nanny through your company, by adding them to the company’s payroll?

Read More


How do the property and trading allowances work in practice?


In April 2017 the government introduced two new £1,000 per annum tax-free allowances in relation to property and trading income.

Read More


New 2% structures and buildings allowance


The Chancellor announced a new structures and buildings capital allowance, which will be set at a rate of 2% per annum, will apply to all newly constructed non-residential buildings and structures where construction works commenced on or after Budget Day.

Read More


Capital gains tax private residence relief- new restrictions added


It was announced that, with effect from April 2020, the current extension of private residence relief to periods where a private residence is let out (known as ‘letting relief’) will only apply where the owner is in shared occupancy with the tenant.

Read More


VAT registration threshold frozen at £85,000 until 2022


Following a call for evidence on the design of the UK VAT threshold (which is higher than most other countries), the government have decided to freeze the registration threshold at £85,000 until 2022. With Making Tax Digital for VAT arriving in April 2019, which only applies to VAT registered businesses with a turnover above the VAT registration threshold, this provides greater certainty.

Read More


Entrepreneurs relief qualifying ownership period extended to 2 years


From 6 April 2019, the minimum period that the conditions must be met to qualify for Entrepreneurs Relief will be extended from 12 months to 2 years.

Read More


2% digital services tax on digital platforms arrives in April 2020


In a measure designed to reduce tax leakage where multinational companies operate online platforms and pay little or no tax in the UK, a new 2% digital services tax will be levied on revenues from the UK market in relation to search engines, social media platforms, and online marketplaces.

Read More


1/3rd rates discount for high street retail properites from April 2019


In a bid to help independent retailers (shops, cafes etc) on our high streets, a one third business rates discount will be given on retail properties with a rateable value below £51,000 for a 2 year period, commencing April 2019.

Read More


National living wage increased to £8.21 per hour from april 2019


While not referred to in the speech itself, the Budget document confirmed that the National Living Wage for workers aged 25 and over is set to increase from the current level of £7.83 per hour to £8.21 per hour from April 2019, an increase of almost 5%.

Read More


Annual investment allowance increased to £1m from January 2019


The Annual Investment Allowance allows businesses tax relief on 100% of qualifying expenditure on plant and equipment, and is currently set at £200,000 per annum.

Read More


IR35 reform to hit private sector in 2020, but small organisations exempt


When you are alone for days or weeks at a time, you eventually become drawn to people. Talking to randos is the norm. After a long time I could witness the sunrise. I could feel the sun rays falling on my body.

Read More


Personal allowance & higher rate threshold to rise from April 2019


The Chancellor confirmed that the government’s target of reaching a tax-free Personal Allowance of £12,500 and a higher rate tax threshold of £50,000 by 2020 will be met one year early, with those amounts being introduced from April 2019.

Read More


Seminar – Making tax digital: is your business ready?


With Making Tax Digital for VAT arriving in April 2019, we are holding a free seminar exploring the forthcoming changes and how your business will be affected.

Read More


Maximise CGT private residence relief with careful planning


Rental property owners that live in the property for a period of time may be able to mitigate their potential Capital Gains Tax liabilities on an eventual sale through careful planning.

Read More


How does inheritance tax taper relief work in practice?


Taper relief reduces the Inheritance Tax payable on gifts made during a taxpayer’s lifetime, providing they survive at least 3 years from making the gift.

Read More


KRW team news: Callum celebrates ACCA exam success


We are pleased to report that Callum Andrews passed his final ACCA exams last month, and is now fully ACCA qualified.

Read More


Avoid additional 3% stamp duty by buying a second property in a trust


The additional 3% surcharge rate of stamp duty land tax that applies on the purchase of a second property is notoriously hard to avoid.

Read More


Will Entrepreneurs’ Relief apply if I sell a property used in my business?


Entrepreneurs’ Relief applies to the sale of business assets or shares in a trading company, reducing the Capital Gains Tax rate to 10% for qualifying disposals.

Read More


KRW team news: Introducing Sarah Dymond & Sylvia Brookbanks


Due to our continued growth, and also to enable some role changes with existing staff, we’ve been on the lookout for another accountant and a Payroll Manager to join our team.

Read More


Claiming the transferable marriage allowance


The transferrable marriage allowance arrived in 2015 but was widely considered to be a bit of a damp squib as very few couples could claim it and a separate claim needed to be made.

Read More


What are the Corporation Tax quarterly payment thresholds for a group?


Many readers are probably blissfully unaware of the Corporation Tax quarterly payment regime, since this only applies to companies with annual profits in excess of £1.5 million.

Read More


Tax GDPR: KRW’s Privacy Policy


With GDPR now live, we want to ensure that all of our clients are made aware of our privacy policy.

Read More


Company cars for the kids


With company car tax based on CO2 emissions and the list price when new, company cars are rarely tax efficient for company owners, usually due to the type of cars they want to drive!

Read More


Can any VAT be reclaimed when you take a client out to lunch?


Most readers are probably familiar with the general block on reclaiming VAT on costs associated with entertaining customers or suppliers. But are there any exceptions?

Read More


KRW team news: Introducing Brooke Howard


As KRW continues to grow we have been on the lookout for another administrator to join the team.

Read More


Does VAT need to be charged on wage costs recharged to another business?


Several clients have asked this question over the years, and for a very good reason. There is no VAT on wages, so surely recharging wages to another business is VAT-free too?

Read More


The value of a pre-year-end tax planning meeting


For a number of years now we have been offering our clients a pre-year-end tax planning meeting, and these are becoming increasingly popular.

Read More


The tax advantages of holding shares in a holding company


There are many reasons to consider holding the shares in your trading company through a separate holding company, the main one being to safeguard retained profits.

Read More


Can I claim rent-a-room relief if I am not living in the property throughout?


Rent-a-room relief allows you to let out part of your home without any income tax liability, providing your rental income does not exceed £7,500 per annum.

Read More


Auto Enrolment contribution increases from April 2018


By now all existing employers should be aware of Auto Enrolment and should have a qualifying scheme in place.

Read More


How to reduce personal tax retrospectively


With the 31 January Self Assessment tax payment deadline looming, we often encounter clients that want to reduce their tax liabilities. But surely it’s too late now?

Read More


If an employee uses the company van, will a van benefit apply?


We all know that company car tax rarely makes it tax efficient to run a company car, but what about a company van? Are the rules the same?

Read More


How to reduce company car tax


Company car tax is based on the car’s list price when new, and its Co2 emissions, and with annual increases, the tax/NIC on a company car benefit can soon mount up.

Read More


KRW team news: Introducing Seb Lord


As KRW continues to grow we are always on the lookout for talented individuals to join the team, so that we can continue to improve our service.

Read More


How to calculate your turnover reduction for the fifth SEISS grant


As set out in our Tax News article, the fifth SEISS grant opens at the end of this month, but this time there are two levels of grant dependent on your reduction in turnover as a result of COVID-19.

Read More


Changes to self-employed income support scheme 4th and 5th grants


It was confirmed in the Budget earlier this month that two further SEISS grants will be available to self-employed taxpayers whose businesses continue to be adversely affected by Coronavirus.

Read More


KRW team news: coronavirus business bounce-back loan scheme launches


The government have yesterday launched a new loan scheme for small businesses which is simpler and quicker to access than the existing Coronavirus Business Interruption Loan Scheme (CBILS).

Read More


KRW team news: Introducing Heather May & Dominic McCabe


Due to our continued growth, and with one of the team retiring, we’ve been on the lookout for another bookkeeper and a Payroll Manager to join our team.

Read More


KRW: Your property tax experts


Buy-to-let landlords have been under attack in recent years with the 3% stamp duty surcharge, the restriction of tax relief for mortgage interest, and now changes to letting relief.

Read More


Seminar – Making tax digital: is your business ready?


With Making Tax Digital for VAT arriving in April 2019, we are holding a free seminar exploring the forthcoming changes and how your business will be affected.

Read More


KRW team news: Callum celebrates ACCA exam success


We are pleased to report that Callum Andrews passed his final ACCA exams last month, and is now fully ACCA qualified.

Read More


KRW team news: Introducing Sarah Dymond & Sylvia Brookbanks


Due to our continued growth, and also to enable some role changes with existing staff, we’ve been on the lookout for another accountant and a Payroll Manager to join our team.

Read More


Tax GDPR: KRW’s Privacy Policy


With GDPR now live, we want to ensure that all of our clients are made aware of our privacy policy.

Read More


KRW team news: Introducing Brooke Howard


As KRW continues to grow we have been on the lookout for another administrator to join the team.

Read More


The value of a pre-year-end tax planning meeting


For a number of years now we have been offering our clients a pre-year-end tax planning meeting, and these are becoming increasingly popular.

Read More


Auto Enrolment contribution increases from April 2018


By now all existing employers should be aware of Auto Enrolment and should have a qualifying scheme in place.

Read More


KRW team news: Introducing Seb Lord


As KRW continues to grow we are always on the lookout for talented individuals to join the team, so that we can continue to improve our service.

Read More


Dividend tax rates to increase by 1.25% from April 2022


In a bid to level the playing field with business owners who take lower salaries and supplement their income with dividends which do not attract NIC, the government also announced an increase in dividend tax rates by 1.25% from April 2022.

Read More


Self employed class 4 NIC rates to increase by 1.25% from April 2022


In order to bring parity between employed and self-employed workers, it was confirmed that the 1.25% increase will also be applied to the Class 4 National Insurance rates paid by the self-employed (which includes partners in a partnership or LLP).

Read More


Employer NIC rates to increase by 1.25% from April 2022


Alongside the increase to employee NIC rates, it was also announced that the 1.25% increase will also apply to employer NIC contributions, from April 2022.

Read More


Employee NIC rates to increase by 1.25% from April 2022


The Prime Minister announced that in order to fund wide ranging reform to the health and social care sectors, it would be necessary to increase the rate of National Insurance paid by employees by 1.25% from April 2022.

Read More


5th coronavirus grant for the self employed opens end of July


Earlier this month, HM Revenue & Customs issued some guidance about the fifth, and potentially final, Self Employed Income Support Scheme grant which kicks off at the end of this month.

Read More


Self employed income support scheme further grants confirmed


The Chancellor confirmed that there will be two further three-month grants for self-employed taxpayers once again set at 80% of past profits, and capped at £7.5k.

Read More


Urgent action needed to spread the payment of deferred vat bills


Almost a year ago, on the eve of the first lockdown, the Chancellor announced that businesses could defer their quarterly VAT liability falling due in April/May/June 2020 until the end of the tax year.

Read More


New recovery loan scheme announced


With the current Bounce Back and Coronavirus Business Interruption Loan Schemes due to end soon, a new 80% government backed Recovery Loan Scheme has been announced offering loans between £25k and £10 million to support businesses through the next stage of their recovery.

Read More


New restart grants for hospitality, leisure, gyms & non-essential retail


£5 billion has been pledged to fund new Restart Grants which provide a one-off cash grant of up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses in England.

Read More


Business rates relief for retail, hospitality & leisure extended


The current business rates holiday for certain sectors including retail, hospitality and leisure has been extended to 30 June 2021, as expected, with a 2/3rds discount then applied for 9 months up until 31 March 2022, to allow businesses in these sectors time to recover.

Read More


Tax relief for losses extended to allow 3 year carry back


n a bid to help businesses adversely affected by COVID, the usual rules that allow a business to carry back losses for one year have been amended to allow losses made in the 2020/21 and 2021/22 tax years to be carried back and offset against profits in the previous 3 years.

Read More


VAT, capital gains tax, pensions & inheritance tax thresholds also frozen


Alongside the freezing of the tax-free personal allowance and higher rate tax thresholds, the Chancellor also announced that the VAT registration threshold will be frozen at £85k for 3 years, while the Capital Gains Tax annual exemption of £12,300, the pensions Lifetime Allowance of £1,073,100, and the current Inheritance Tax thresholds will be frozen for 5 years until April 2026.

Read More


Stamp duty land tax cut extended


The current £500,000 threshold for Stamp Duty on residential properties that was due to end on 31 March 2021 has been extended to 30 June 2021. After this the usual threshold of £125,000 will be temporarily doubled to £250,000 for a further 3 months up until 30 September 2021.

Read More


VAT cut for hospitality & leisure sectors extended


The current much needed VAT cut to 5% for the hospitality and leisure sectors was due to end on 31 March 2021, but the Chancellor announced earlier today that it will be extended until 30 September 2021, after which it will be increased to 12.5% until 31 March 2022.

Read More


Super-deduction for companies investing their reserves for 2 years


Rishi Sunak announced that from April 2021 until March 2023 a super-deduction will be offered to any companies that invest in new equipment, by allowing 130% of what they invest to qualify for tax relief (currently 100% but subject to limits).

Read More


Furlough scheme extended until 30 september 2021


In better news, the Coronavirus Job Retention Scheme has been extended to 30 September 2021, although businesses will need to contribute 10% of the 80% wages paid to furloughed workers in July, and 20% of their 80% wages in August and September 2021.

Read More


Personal allowance and higher rate tax threshold frozen for 5 years


The Chancellor also announced that the new personal allowance of £12,570 which arrives in April 2021 will be frozen for 5 years until 2026.

Read More


Corporation tax rise to 25% from april 2023


Let’s start with the worst news first. In a bid to rebalance the books post COVID, Rishi Sunak announced a rise in the Corporation Tax rate to 25% from April 2023 which was higher than expected.

Read More


Self-employment income support scheme goes live on 13 May 2020


The Coronavirus Self-Employment Income Support Scheme was announced back in March, and gives the self-employed a grant of up to £7,500 if their business has been affected by COVID-19.

Read More


HMRC release draft guidance on Structures & Buildings Allowance (SBA)


In last year’s Budget, the Chancellor announced the introduction of a new capital allowance for new commercial structures and buildings, known as the SBA.

Read More


Changes to VAT on vouchers from 1 January 2019


Changes to VAT on vouchers were introduced on 1 January 2019 for vouchers sold on or after that date.

Prior to this change, the sale of a voucher was treated as two separate supplies for VAT purposes; the supply of the physical voucher or gift card; and the underlying goods/services it can be exchanged for.

Read More


Employment allowance not available to larger businesses from April 2020


The Employment Allowance covers the first £3,000 pa of Employers National Insurance, and is currently available to all but the very smallest employers.

Read More


New 2% structures and buildings allowance


The Chancellor announced a new structures and buildings capital allowance, which will be set at a rate of 2% per annum, will apply to all newly constructed non-residential buildings and structures where construction works commenced on or after Budget Day.

Read More


Capital gains tax private residence relief- new restrictions added


It was announced that, with effect from April 2020, the current extension of private residence relief to periods where a private residence is let out (known as ‘letting relief’) will only apply where the owner is in shared occupancy with the tenant.

Read More


VAT registration threshold frozen at £85,000 until 2022


Following a call for evidence on the design of the UK VAT threshold (which is higher than most other countries), the government have decided to freeze the registration threshold at £85,000 until 2022. With Making Tax Digital for VAT arriving in April 2019, which only applies to VAT registered businesses with a turnover above the VAT registration threshold, this provides greater certainty.

Read More


Entrepreneurs relief qualifying ownership period extended to 2 years


From 6 April 2019, the minimum period that the conditions must be met to qualify for Entrepreneurs Relief will be extended from 12 months to 2 years.

Read More


2% digital services tax on digital platforms arrives in April 2020


In a measure designed to reduce tax leakage where multinational companies operate online platforms and pay little or no tax in the UK, a new 2% digital services tax will be levied on revenues from the UK market in relation to search engines, social media platforms, and online marketplaces.

Read More


1/3rd rates discount for high street retail properites from April 2019


In a bid to help independent retailers (shops, cafes etc) on our high streets, a one third business rates discount will be given on retail properties with a rateable value below £51,000 for a 2 year period, commencing April 2019.

Read More


National living wage increased to £8.21 per hour from april 2019


While not referred to in the speech itself, the Budget document confirmed that the National Living Wage for workers aged 25 and over is set to increase from the current level of £7.83 per hour to £8.21 per hour from April 2019, an increase of almost 5%.

Read More


Annual investment allowance increased to £1m from January 2019


The Annual Investment Allowance allows businesses tax relief on 100% of qualifying expenditure on plant and equipment, and is currently set at £200,000 per annum.

Read More


IR35 reform to hit private sector in 2020, but small organisations exempt


When you are alone for days or weeks at a time, you eventually become drawn to people. Talking to randos is the norm. After a long time I could witness the sunrise. I could feel the sun rays falling on my body.

Read More


Personal allowance & higher rate threshold to rise from April 2019


The Chancellor confirmed that the government’s target of reaching a tax-free Personal Allowance of £12,500 and a higher rate tax threshold of £50,000 by 2020 will be met one year early, with those amounts being introduced from April 2019.

Read More


Zero tax when selling your business with a holding company


With recent changes to Entrepreneurs Relief (now Business Asset Disposal Relief) many fear that the days are numbered for paying 10% tax when you sell your business.

Read More


Optimum salary levels for company owners from april 2021


Every tax year the National Insurance and tax thresholds change, and we think carefully about the most tax efficient salary levels to recommend to company Directors.

Read More


Furnished holiday lets could get £10,000 covid-19 grants


As part of a package of measures to assist businesses, the Chancellor announced £10,000 grants for businesses that qualify for Small Business Rates Relief.

Read More


Salary can be cheaper than dividends for those over state retirement age


Regular readers will know that the combination of a low salary and dividends is usually the most tax efficient way for a Director/shareholder to be paid by their company.

Read More


Save tax by employing your nanny through your company


However, what if you instead employed your nanny through your company, by adding them to the company’s payroll?

Read More


Maximise CGT private residence relief with careful planning


Rental property owners that live in the property for a period of time may be able to mitigate their potential Capital Gains Tax liabilities on an eventual sale through careful planning.

Read More


Avoid additional 3% stamp duty by buying a second property in a trust


The additional 3% surcharge rate of stamp duty land tax that applies on the purchase of a second property is notoriously hard to avoid.

Read More


Claiming the transferable marriage allowance


The transferrable marriage allowance arrived in 2015 but was widely considered to be a bit of a damp squib as very few couples could claim it and a separate claim needed to be made.

Read More


Company cars for the kids


With company car tax based on CO2 emissions and the list price when new, company cars are rarely tax efficient for company owners, usually due to the type of cars they want to drive!

Read More


The tax advantages of holding shares in a holding company


There are many reasons to consider holding the shares in your trading company through a separate holding company, the main one being to safeguard retained profits.

Read More


How to reduce personal tax retrospectively


With the 31 January Self Assessment tax payment deadline looming, we often encounter clients that want to reduce their tax liabilities. But surely it’s too late now?

Read More


How to reduce company car tax


Company car tax is based on the car’s list price when new, and its Co2 emissions, and with annual increases, the tax/NIC on a company car benefit can soon mount up.

Read More


What tax and NIC will i owe on the SEISS grants?


Now that we’re into the full swing of preparing 2020/21 Self Assessment Tax Returns, we’ve had a number of clients query their tax bills, which include tax and NIC owed on SEISS grants.

Read More


What’s the crack with the super-deduction? what can i use it on?


Rishi Sunak certainly bigged up the new super-deduction in the Budget earlier this month, prompting many clients to get in touch to see how they can benefit from it.

Read More


Can a director be furloughed under the job retention scheme?


The Job Retention Scheme allows for 80% of a furloughed employee’s wages to be reclaimed from HM Revenue & Customs, providing they are doing no work for the business.

Read More


Can i reclaim vat if my business purchases a car?


HMRC will usually accept a small amount of incidental private use, for example stopping off for a sandwich on the way back from a business journey, but beyond that they are highly likely to challenge any recovery of VAT on the car’s purchase.

Read More


What tax relief can i claim for working from home?


Most business owners will do some of their work from home, but what tax relief can they claim for this? An unincorporated taxpayer (i.e., a sole trader or partner in a partnership) may be able to claim a proportion of its costs for working from home for things like:

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How do the property and trading allowances work in practice?


In April 2017 the government introduced two new £1,000 per annum tax-free allowances in relation to property and trading income.

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How does inheritance tax taper relief work in practice?


Taper relief reduces the Inheritance Tax payable on gifts made during a taxpayer’s lifetime, providing they survive at least 3 years from making the gift.

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Will Entrepreneurs’ Relief apply if I sell a property used in my business?


Entrepreneurs’ Relief applies to the sale of business assets or shares in a trading company, reducing the Capital Gains Tax rate to 10% for qualifying disposals.

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What are the Corporation Tax quarterly payment thresholds for a group?


Many readers are probably blissfully unaware of the Corporation Tax quarterly payment regime, since this only applies to companies with annual profits in excess of £1.5 million.

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Can any VAT be reclaimed when you take a client out to lunch?


Most readers are probably familiar with the general block on reclaiming VAT on costs associated with entertaining customers or suppliers. But are there any exceptions?

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Does VAT need to be charged on wage costs recharged to another business?


Several clients have asked this question over the years, and for a very good reason. There is no VAT on wages, so surely recharging wages to another business is VAT-free too?

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Can I claim rent-a-room relief if I am not living in the property throughout?


Rent-a-room relief allows you to let out part of your home without any income tax liability, providing your rental income does not exceed £7,500 per annum.

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If an employee uses the company van, will a van benefit apply?


We all know that company car tax rarely makes it tax efficient to run a company car, but what about a company van? Are the rules the same?

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