Newsroom
What we’re seeing across our clients.
Commentary, briefings and case studies from the Mercian team — what’s hitting our inbox, what HMRC is asking, and what owners are doing about it.
Capital Gains Tax (CGT) Rule Changes for Divorcing Couples
When couples go through a divorce or separation, transferring the matrimonial home and other properties between them can result in a Capital Gains Tax (CGT) liability. However, new rules announced in the Government’s Spring Budget extend the period during which CGT relief can be claimed on asset transfers. Effective from 6th April 2023, these new…
Read MoreElectronic Sales Suppression: HMRC Voluntary Disclosure
HMRC is sending letters to businesses that may not have paid the correct income tax, corporation tax, or VAT due to misuse of their till systems. The letters are intended to provide an opportunity for businesses using electronic sales suppression (ESS) to get their tax affairs in order by voluntarily disclosing undeclared sales to HMRC.…
Read MoreUnderstanding Full Expensing
Full expensing is a tax relief scheme that allows companies to claim 100% of the cost of qualifying plant and machinery all in one go. This tax incentive was introduced in the Spring Budget 2023 and runs from 01 April 2023 to 31 March 2026. Why Full Expensing Matters This tax relief measure encourages UK…
Read MoreEmploying Your Children in Your Business
Including your children in your business and finances can be a rewarding experience, offering them valuable work experience and instilling a strong work ethic while providing tax benefits for the business. However, employing your children involves understanding and adhering to legal, tax, and regulatory requirements. This article will help you navigate the complexities of employing…
Read MoreNavigating Tax Regulations for UK Farm Holiday Accommodation Providers
Managing tax obligations for holiday accommodation operators can be challenging, with many nuances and specific rules to navigate. This article aims to guide avoiding common pitfalls in areas such as VAT, income recognition, capital and revenue expenses, and capital allowances. Understanding VAT on Deposits and Accounting Systems Correctly accounting for VAT on deposits is crucial,…
Read MoreThe 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…
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