By Katie Business News • Tax News 0 Comments

Diary of main tax events July/August 2022

Find below our diary of main tax events July/August 2022. If you need further guidance or support on meeting these deadlines, our team our here to help.

Date What’s Due
1/07 Corporation tax for year to 30/9/21 (unless pay quarterly)
5/07 Last date for agreeing PAYE settlement agreements for 2021/22 employee benefits
5/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2021/22
06/07 Deadline for forms P11D and P11D(b) for 2021/22 tax year. Also deadline for notifying HMRC of shares and share options awarded to employees.
19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/22 (due 22/07 if you pay electronically)
31/07 50% payment on account of 2022/23 self-assessment tax liability due.
1/08 Corporation tax for year to 31/10/21 (unless pay quarterly)
19/08 PAYE & NIC deductions, and CIS return and tax, for month to 5/8/22 (due 22/08 if you pay electronically)

Need more information?

Our team are here to help you meet all of the deadlines above. Our diary of main tax events July/August 2022 are here to keep you informed. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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    By Katie Business News • Tax News 0 Comments

    R&D tax credit repayments delay 2022

    The Research & Development (R&D) tax credit scheme for small and medium sized enterprise companies is particularly generous as there is currently 230% relief for qualifying expenditure and, where the company is loss making, this results in a 14.5% repayable credit. This means that the company receives a £33,350 refund for every £100,000 spent on R&D.

    R&D tax credit repayments delay 2022

    This generous tax break has reportedly resulted in abuse of the system. HMRC have recently paused some repayments while they investigate an increase in irregular claims. Unfortunately, even for legitimate claims, this is going to increase processing times.

    For the vast majority of claims, HMRC aims to either pay the payable tax credit or contact the claimant regarding the claim within 40 days instead of the previous 28 day response.

    Need more information?

    Do you need further guidance on the R&D tax credit repayments? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions to optimise growth and help you succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

    Our fantastic team at A&C Chartered Accountants are here to help.

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      By Katie Business News • Tax News 0 Comments

      Penalties for overclaimed SEISS grants

      SEISS grants

      HMRC are reminding sole traders and partners who have received Self-Employed Income Support Scheme (SEISS) grants that there are potentially penalties of up to 100% of amounts overclaimed in certain circumstances.

      HMRC may apply the penalty where they believe that the trader knew that they were not entitled to the grant and did not tell HMRC within a 90-day notification period. The law treats the failure as ‘deliberate and concealed’. This means HMRC may charge a penalty of up to 100% of the amount of the SEISS grant that the trader was not entitled to receive or keep.

      Traders are required to notify HMRC if there is an amendment to any of their tax returns on or after 3 March 2021 which either:

      • lowers the amount of the fourth or fifth grant they are eligible for
      • causes the trader to no longer be eligible for the fourth or fifth grant

      If the tax return was amended before claiming the fourth or fifth grant, traders had to tell HMRC within 90 days of receiving the grant. If the tax return has been amended after receiving the fourth or fifth grant, traders must tell HMRC within 90 days of the amendment.

      Reporting SEISS grants on 2021/22 tax returns

      Where applicable, the fourth and fifth SEISS grants that a trader was entitled to need to be reported on the trader’s 2021/22 self-assessment tax return, with any overclaimed amounts separately disclosed. The fifth grant claim was particularly complicated as it was dependant on the reduction in business turnover.

      If you have any concerns, we can check that the amounts reported are correct and minimise any potential penalties.

      Need more information?

      Do you need further support with SEISS grants? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

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        By Katie Making Tax Digital • Tax News 0 Comments

        MTD for VAT – new guidance on penalties for non-compliance

        MTD for VAT – new guidance on penalties for non-compliance

        HMRC have also issued new guidance on the penalties that they impose for non- compliance with the Making Tax Digital (MTD) for VAT rules. In particular, there is a penalty of up to £400 for every VAT return a business files without using ‘functional compatible software’.

        Functional compatible software means a software program, or set of software programs, products or applications that can:

        • record and store digital records
        • provide HMRC with information and VAT returns from the data held in those digital records
        • receive information from HMRC

        There are additional penalties if the business does not keep their records digitally.

        HMRC may charge the business a penalty of between £5 to £15 for every day on which the digital record keeping requirement is not met.

        To meet the digital record keeping requirement, the business’ functional compatible software must contain:

        • the business name, address and VAT registration number
        • any adjustments from calculations made outside the functional compatible software for any VAT accounting schemes used
        • the VAT on goods and services supplied, meaning everything the business sold, leased, rented or hired (supplies made)
        • the VAT on goods and services received, meaning everything the business bought, leased, rented or hired (supplies received)
        • any adjustments made to a return
        • the ‘time of supply’ and ‘value of supply’ (value excluding VAT) for everything bought and sold
        • the rate of VAT charged on goods and services
        • details of any ‘reverse charge transactions’, where the business needs to record the VAT on the sale price and the purchase price of the goods and services bought
        • copies of documents that cover multiple transactions made on behalf of the business like those made by volunteers for charity fundraising, a third-party business or employees for expenses in petty cash

        All transactions must be contained in the functional compatible software there is not a requirement to scan or upload supporting documents like invoices and receipts.

        Need more information?

        We have helped many businesses move over to MTD. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

        Contact us below

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          By Katie Business News • Tax News 0 Comments

          Increase in National Insurance thresholds July 2022

          In the Spring Statement 2022, the UK Government announced an increase in National Insurance thresholds affecting the 2022 to 2023 tax year.

          We want to take the opportunity to remind our clients that the threshold changes will take effect from 6 July 2022, meaning employees will pay National Insurance contributions on less of their income.

          The primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year). See the guidance Rates and thresholds for employers 2022 to 2023, ‘Class 1 National Insurance thresholds’ for further information.

          The National Insurance lower profits limit for self-employed people has also increased in line with the changes for employees. The annual lower profits limit is now set to £11,908 for 2022 to 2023. This is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, mirroring the position for employees. Self-employed people are also no longer required to pay Class 2 National Insurance contributions on profits between the Small Profits threshold (£6,725) and Lower Profits limit (£11,908), but they are still able to build National Insurance credits.

          Please contact us about these changes – we are here to help!

          Need more information?

          Do you need further support with the new National Insurance thresholds? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

          Contact us below

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            By Katie Tax Advice • Tax News 0 Comments

            Diary of main tax events – June/July 2022

            Please see below for the diary of main tax events – June/July 2022. If you need help with meeting these deadlines we are here to help.

            Date What’s Due
            01/06 Corporation tax for year to 31/8/21 (unless pay quarterly)
            19/06 PAYE & NIC deductions, and CIS return and tax, for month to 5/6/22 (due 22/06 if you pay electronically)
            01/07 Corporation tax for year to 30/9/21 (unless pay quarterly)
            05/07 Last date for agreeing PAYE settlement agreements for 2021/22 employee benefits
            05/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2021/22
            06/07 Deadline for forms P11D and P11D(b) for 2021/22 tax year. Also, deadline for notifying HMRC of shares and options awarded to employees.
            19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/22 (due 22/07 if you pay electronically)
            31/7 50% payment on account of 2022/23 tax liability due.

            Need more information?

            Do you need further help with the diary of main tax events – June/July 2022? We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

            Our fantastic team at A&C Chartered Accountants are here to help.

            Contact us below

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              By Katie Tax Advice • Tax News 0 Comments

              Capital gains tax on separation and divorce

              Capital gains tax on separation and divorce:

              When a married couple or civil partners separate, tax planning is understandably not at the top of the list of their thoughts. However, a ‘no gain/no loss’ rule allows capital assets to be transferred between them free of capital gains tax (CGT) up to the end of the tax year in which they permanently separate. Beyond that date, asset transfers between the couple will often give rise to a CGT liability. With many divorce settlements taking several months this is worth careful consideration.

              The Office of Tax Simplification has recommended to the Treasury that the no gain/no loss rule should be extended to two years from the date of permanent separation. The government have accepted this recommendation, but the change in rules is yet to be legislated.

              The actual date that assets are treated as transferred between the separating couple depends upon how the marriage or civil partnership is dissolved.

              It is also important to consider private residence relief (PRR) on the family home. It should be noted that where one spouse or civil partner leaves the matrimonial home, they may continue to be eligible for PRR even if they no longer live in the property. There are specific conditions that need to be satisfied for this to apply.

              All in all, CGT on separation is a complex area and please do talk to us if any issues may be in point. We understand the sensitivity of the situation and are here to help.

              Need more information?

              Do you need further help with capital gains tax? We offer a wide range of services which are unique to your business relating to this matter. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

              Contact us below

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                By Katie Tax Advice • Tax News 0 Comments

                Salary sacrifices – make sure you get the timing right

                Salary sacrifices – make sure you get the timing right:

                Many employers and employees have been putting in place salary sacrifice arrangements to give up some of their contractual salary in exchange for additional pension contributions or an electric company car. In these specific cases and if correctly structured, the employee is taxed on the lower of the taxable benefit and the salary foregone.

                In the case of the electric car the benefit is currently 2% of the original list price. There is no taxable benefit on employer pension contributions.

                When the director or employee enters into the salary sacrifice arrangement, they must agree with their employer to vary the employment contract well in advance of the date when the first payment under the new arrangement is due to be made. If the contractual changes have not been completed by that date, the terms of the previous contract continue to be in force.

                This means that the employee is still entitled to receive, and is therefore still taxable on, the previous higher salary, even though the smaller, post- sacrifice amount is paid.

                Need more information?

                Do you need help with Salary sacrifices? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                Our fantastic team at A&C Chartered Accountants are here to help.

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                  By Katie Tax Advice • Tax News 0 Comments

                  End of tax year payroll procedures

                  End of tax year payroll procedures:

                  As the 2021/22 tax year has now ended, employers need to carry out the following end of year procedures:-

                  • Provide employees with their P60 annual summaries by 31 May 2022,
                  • Prepare forms P11D for employees’ expenses and benefits by 5 July 2022,
                  • Update employees’ payroll data for 2022/23, in particular their new tax codes, and

                  Update their payroll software for 2022/23 if they haven’t already done so.

                  Need more information?

                  We have a dedicated in-house payroll team who control all of our clients payroll procedures. We offer a wide range of services which are unique to your business and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

                  Contact us below

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