VAT accounting simplification

VAT accounting simplification

VAT simplification scheme Once a business is registered for VAT, there are a number of VAT accounting simplifications that can help ease the burden of VAT accounting. VAT accounting Perhaps it is necessary to explore simplifications before discussing how the business accounts for VAT. If a company can deduct all the VAT it pays on…

R&D claims will require pre-registration with HMRC

R&D claims will require pre-registration with HMRC

R&D claims will require pre-registration with HMRC Table of Contents Background of R&D claims pre-registration with HMRC Changes to the research and development (R&D) tax credits regime will see new requirements to apply for all reliefs online and pre-registration of claims regardless of size of business When will HMRC going to introduce new rules for…

P11d on Air miles

P11D on air miles

Air Miles: P11-D & BIK implication Table of Contents Would airmiles be classed as a benefit in kind (BIK)? In a limited company, it is quite common for directors and the employees to have company credit cards that they use to purchase goods on behalf of the company. The company credit card generates air miles.…

Don’t get caught by 60% income tax rate

Don’t get caught by 60% income tax rate

Don’t get caught by 60% income tax rate Are you caught up by 60% Income tax rate? Most UK taxpayers are eligible to a personal allowance, which is £12,570 for 2022–2023, which allows them to pay a part of their income tax free. However, for every additional £2 in income over £100,000 per year, you…

First bounce back loan fraudster jailed

First bounce back loan fraudster jailed

First bounce back loan fraudster jailed The director of a Manchester pizza takeaway who fraudulently claimed a £20,000 bounce back loan has been jailed for two years   The director of the takeaway appeared at Manchester Crown Court on Friday 24 June 2022 where he was sentenced to 24 months before Recorder Hudson. The owner…

Plastic Packaging Tax

Am I liable for the new Plastic Packaging Tax PPT?

Plastic Packaging Tax Table of Contents Plastic Packaging Tax Overview: The new Plastic Packaging Tax (PPT) came into force on 1 April 2022 to combat the use of single use plastic and encourage greater reliance on recycled plastics.  Am I liable for Plastic Packaging Tax If you produce or import into the UK any plastic…

P11D Reporting

P11D Reporting

P11-D Reporting: Submission & payment deadlines Table of Contents P11D Overview Employers are required to submit P11D annual reports to HMRC together with any related tax and National Insurance payments when benefits are offered to employees or when specific expenses are covered. Organizations should be aware of their P11-D compliance duties, as majority of UK…

Bonus vs dividend

Bonus v/s Dividend

Bonus vs dividend Table of Contents Bonus vs Dividend overview Directors can extract monies from a company in various ways, the choice invariably being between a salary or dividend (should the director also be a shareholder); but there may be circumstances that might compel payment via a bonus.  The choice of which method can only…

Inflation

Inflation remains at 40 year high

Inflation remains at 40% high, rising to 9.1% in May 2022 The latest inflation figure for May has hit 9.1%, up slightly on the previous month as fuel and energy prices continue to weigh on prices   The Bank of England anticipates inflation to reach 11% this autumn when the new energy price cap goes…

Till fraud clampdown to stop tax evasion

Till fraud clampdown to stop tax evasion

Till fraud clampdown to stop tax evasion Table of Contents Overview of Till Fraud clampdown: HMRC officers are using new powers to target till fraud carrying out spot checks on businesses which suppress takings to avoid tax. This comes after the introduction of new powers to combat till fraud, which allow HMRC officers to enter…

PAYE tax avoidance promoters- Named & shamed

PAYE tax avoidance promoters- Named & shamed

PAYE Tax avoidance promoters: Named & shamed Table of Contents PAYE Tax avoidance overview As part of its clampdown on tax avoidance promoters and its “Don’t get caught out” campaign, HRMC has published the names of 3 tax avoidance schemes and their promoters. HMRC is warning taxpayers not to sign up to a payroll scheme…

Student loan interest rates frozen

The Government freezes Student loan interest rate at 7.3%

The Government freezes Student loan interest rates at 7.3% Table of Contents The government has confirmed that student loan interest rates will remain at 7.3% from September 2022 Normally, interest rates climb in lockstep with inflation, but at the current rate of 9%, student loan rates would have risen to 12%, despite the fact that…