Posts by Graham
The 2023 Spring Budget: Impact on UK Small Businesses and the Corporation Tax Increase
In the 2023 Spring Budget, Chancellor of the Exchequer Jeremy Hunt confirmed a sharp increase in corporation tax, from 19% to 25%. Despite being the most substantial hike in nearly 50 years, Hunt reaffirmed that the UK would still have the lowest headline rate of corporate tax in the G7. However, the increase in corporation…
Read MoreWhat are PAYE Tax Codes?
PAYE (Pay As You Earn) tax codes are used by employers and pension providers in the UK to calculate the amount of income tax to be deducted from an employee’s or pensioner’s pay or pension. The tax code is issued by HM Revenue and Customs (HMRC) and is usually composed of numbers and letters. It…
Read MoreStricter Crypto Regulation and Reporting Requirements
The Government is contemplating significant changes to how crypto assets are regulated following a series of market disruptions, including the collapse of FTX, one of the world’s largest crypto exchanges. The Treasury is currently consulting on the best approach to regulate a wide range of crypto asset activities, intending to provide more safeguards, operational risk…
Read MoreOnline Sellers Targeted by HMRC for Unpaid Taxes on Internet Sales
HMRC has information on thousands of online sellers who have failed to pay tax on sales made over the Internet. Sellers on platforms such as eBay, Etsy, and Facebook Marketplace are among those who have received nudge letters from HMRC containing details about their potential tax liability. The campaign began in January and has seen…
Read MoreInheritance Tax: Safeguarding Your Family’s Financial Future As Receipts Reach New Record
Inheritance tax (IHT) receipts have hit an all-time high in the previous financial year, suggesting that the tax has become a “mainstream tax on ordinary people.” According to new data from HMRC, the total take for 2022-2023 reached £7.1 billion, surpassing the previous record of £6.1 billion set last year by £1 billion. The tax…
Read MorePedal Your Way to Tax Savings: The Cycle to Work Scheme for Limited Companies
The ‘Cycle to Work’ scheme is an annual tax exemption allowing businesses to loan employees bicycles and cycle safety equipment as a tax-free benefit. The scheme has positively impacted workplace health and motivation and encouraged people to engage in physical activity. But is this scheme suitable for limited companies? Directors The ‘Cycle to Work’ tax…
Read MoreChanges to Termination Payment Taxation for Employers
Mercian Accountants wants to remind UK employers of several changes to the tax treatment of termination payments. Over the past five years, the rules for income tax and National Insurance contributions (NIC) have been aligned, foreign service relief on termination payments to UK resident individuals has been removed, and clarification has been made that the…
Read MoreBounce Back Loan Fraud: Hundreds of Directors Disqualified
Over the past year, the Insolvency Service has taken action against more than 450 directors for fraudulently taking advantage of the Bounce Back Loan scheme and other Covid support programmes. Despite these efforts, some argue that these measures may not address the issue fully. During the 2022/23 financial year, the Insolvency Service reported a total…
Read MoreMastering the Art of Tax Efficiency: Director’s Salary and Dividend Strategies for 2023/24
Stay Ahead with Tax-Efficient Strategies With no further changes announced in the 2023 Spring Budget, it’s time to explore the most tax-efficient director’s salary and dividend strategies for 2023/24. This guide will provide an overview of the key tax rates and allowances and offer insights on maximising your post-tax income. 2023/24 Tax Landscape: Rates and…
Read MoreHMRC Basis Period Reform for Sole Traders & Partnerships
Mandatory basis period reforms have been announced by HMRC for unincorporated businesses, including sole traders, irrespective of their involvement with Making Tax Digital (MTD). This article delves into the details of these reforms and how sole traders and partnerships need to adapt. Starting from the 2024/25 tax year, affected businesses must use the tax year…
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