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Corporation tax in 2023
After multiple policy U-turns and much uncertainty, the main rate of corporation tax will rise from 19% to 25% from 1 April 2023, affecting companies with profits of £250,000 and over. The legislation provides that small companies with profits up to £50,000 will continue to pay corporation tax at 19%, with profits between the two…
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Research & development relief guidance under review
HMRC is inviting people to comment on draft guidance relating to the upcoming R&D tax credit relief reforms. The reforms, expected to be implemented from 1 April 2023, will change how R&D works in practice and set out additional information requirements when applying for the relief. Anyone wishing to comment can do so until 28…
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MPs call for urgent improvements to HMRC’s performance
MPs are demanding urgent improvements to HMRC’s “unacceptable service standards” after a parliamentary report discovered an “eye-watering” £42 billion is owed to HMRC from unpaid tax. The report also highlighted a dramatic drop in HMRC staffing levels, with 6,000 employees being cut over the past five years. Dame Meg Hillier, chair of the committee, said:…
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Inflation remains a key concern for business
Soaring inflation remained a key concern for businesses at the end of 2022, according to the latest quarterly economic survey from the British Chambers of Commerce (BCC). Of the 5,600 firms surveyed – 92% of which are SMEs – 80% said that inflation was a growing worry for their business in Q4 of 2022. Nearly…
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Chancellor reveals new energy discount for businesses
The Government has announced a new energy bills discount scheme (EBDS) for UK businesses, set to replace the current energy bills relief scheme (EBRS) once it ends in March. The new support package will last from 1 April 2023 to 31 March 2024, giving organisations a discount on high wholesale prices instead of capping energy…
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Energy price cap removes risk for one in four businesses
One in four business leaders (24%) believe the Government’s energy bill relief scheme (EBRS) has removed a “serious risk” to their business, according to a poll by the Institute of Directors (IoD). Of the surveyed 500 or so directors whose energy bills made up more than 5% of their costs, 11% stated they have been…
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SMEs owed £23.4bn in late payments
Large businesses owe their small suppliers £23.4 billion in late payments, according to the Government, sparking a review by the Department for Business, Energy and Industrial Strategy (BEIS). Business Secretary Grant Schapps said he would launch the review to scrutinise payment practices and “prevent small firms from being ripped off by larger companies”. The review…
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Economic outlook remains bleak despite rise in GDP
Monthly GDP grew by around 0.5% in October 2022, following 0.6% drop in September, according to the Office for National Statistics (ONS). Despite the recovery in monthly figures, the UK economy nevertheless contracted by 0.3% in the three months to October. The rise in GDP in October follows a 0.6% fall in September, which “was…
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Treasury delays MTD for ITSA until 2026
The Treasury has confirmed that Making Tax Digital for income tax self-assessment (MTD for ITSA) will be delayed a further two years until April 2026. According to First Secretary to the Treasury Victoria Atkins, this phased approach will give businesses more time to prepare and adapt to new ways of working. The minimum reporting level…
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Income tax: what’s changing?
A number of changes are coming to income tax in April 2023 that will affect taxpayers across the UK. Many of these measures were announced by Chancellor of the Exchequer Jeremy Hunt in his Autumn Statement on 17 November 2022. According to Hunt, these decisions will see everyone pay “a bit more tax” from the…
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How to turn a side hustle into your dream job
A side hustle is a piece of work or a job that an individual can get paid for in addition to their main job. From driving for a ride sharing company to tutoring online, copywriting, and more, a side hustle could be any commercially viable endeavour. The practice became as popular as ever in the…
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Tax thresholds frozen in Autumn Statement 2022
Chancellor Jeremy Hunt announced several measures in this year’s Autumn Statement in an attempt to plug the £55 billion ‘black hole’ in public finances. The statement, delivered to the House of Commons on 17 November, included several tax threshold freezes and cuts in annual allowances. One of the most important changes was the announcement that…
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National Insurance increase reversed
The Government’s reversal of the National Insurance contribution (NICs) increase is now in effect as of 6 November. The majority of working people will begin receiving the 1.25% tax cut in their payslips from November onwards. The rise in NICs was introduced in April as part of the health and social care levy but was…
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HMRC reminds taxpayers to declare SEISS payments
HMRC is reminding taxpayers to declare their self-employed income support scheme (SEISS) payments in their self-assessment return for the 2021/22 tax year. The Government paid SEISS grants to eligible businesses adversely affected by the Covid-19 pandemic, with over 2.9 million people claiming at least one SEISS payment in the 2021/22 tax year. The grants are…
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Bank of England raises base interest rate
The Bank of England (BoE) decided to increase the base interest rate from 2.25% to 3% last month in a bid to curb inflation. The 0.75 percentage point rise is the largest hike since 1989 and the eighth consecutive increase since December 2021. Updated projections from the Bank’s Monetary Policy Committee (MPC) indicated that the…
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Self-assessment tax returns
With the new year just around the corner and tax season fast-approaching, now’s a good time to get a head start on your self-assessment tax return. Self-assessment is a system HMRC uses to collect tax on income that wasn’t taxed at source. People who are self-employed, such as sole traders, have to file a self-assessment…
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Retirement planning – what to think about
With the rising costs of living affecting every aspect of almost everyone’s finances, there’s no time like the present to start considering your retirement plans. Unfortunately, the Government has significantly increased the state pension age over a number of years. The state pension age is currently 66 years old for both men and women, but…
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Hunting for growth: Autumn Statement 2022
Introduction “British families make sacrifices every day to live within their means, and so too must their Government, because the United Kingdom will always pay its way.” – Chancellor Jeremy Hunt As Jeremy Hunt took to the dispatch box just 34 days after taking on the role of Chancellor of the Exchequer, all eyes were…
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MTD for VAT penalties begin from November
HMRC has announced that penalties will be issued to those not completing VAT returns through Making Tax Digital (MTD) from 1 November 2022. Anyone who files a VAT return via a non-electric submission will face penalties of up to £400. These changes will apply to VAT customers for accounting periods on or after 1 April…
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Covid loans scheme hit by over £1bn in suspected fraud
The Government is joining forces with lenders and agencies to tackle the high level of bounce-back scheme fraud cases. A new report shows that £1.1 billion worth of loans provided through the Government’s bounce-back loan scheme (BBLS) have been marked as suspected fraud. The Department for Business, Energy and Industrial Strategy (BEIS) released a document…
