Posts Tagged ‘tax’
HMRC letters to company directors on undeclared dividend income
HMRC is contacting Company directors suspected of receiving dividends without declaring the income on their Self-Assessment Tax Returns Business owners have been receiving letters from HMRC as part of a recent campaign. These letters notify them about the potential requirement to declare dividend income. HMRC has been conducting investigations on company reserves, specifically targeting those…
Read MoreCompany Tax Return Essentials: CT600 and Corporation Tax
Introduction Welcome to our introduction to Company Tax Returns, CT600, and Corporation Tax. This article is designed to be a valuable resource for business owners, financial professionals, and anyone involved in managing a company’s financial obligations. Understanding the complexities of tax compliance can be challenging, but it is crucial for the successful operation of your…
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 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…
Read MoreMaximising Tax Benefits of Incorporating Your Property Portfolio: A Comprehensive Guide
In the ever-changing landscape of property investment, investors must stay informed about the latest tax regulations and strategies for maximising their returns. One of the most significant opportunities for property investors in the UK is the incorporation of their personal property portfolios into limited companies. This comprehensive guide, brought to you by Mercian Accountants, will…
Read MoreNew Associated Companies Rules
HMRC recently released new guidance on the ‘associated companies’ test for determining applicable corporation tax rates and payment deadlines. This guidance is particularly relevant to businesses with multiple associated companies and larger businesses not expecting to pay the lower rate. The reintroduction of the small profits rate has also led to changes in the thresholds…
Read MoreSpring Budget 2023: tax rates and allowances
Income tax rates: England, Wales & Northern Ireland(non-dividend income) (note 1) 2023/24 2022/23 0% starting rate for savings only Up to £5,000 Up to £5,000 20% basic rate tax £12,571-£50,270 £12,571- £50,270 40% higher rate tax £50,271-£125.140 £50,271- £150,000 45% additional rate tax Above £125,140 Above £150,000 Note 1: The Welsh Government has made a…
Read MoreA simple guide to the Spring Budget 2023
The headline message from the Chancellor The Chancellor highlighted, “In the autumn, we took difficult decisions to deliver stability and sound money… Today, we deliver the next part of our plan. A budget for growth… long-term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety…
Read MoreCharitable giving and Tax
Many people give money to charity, however, only half of them are taking advantage of the Gift Aid scheme. Let’s consider how a taxpayer can donate to charity tax-efficiently. Giving through Gift Aid is a very popular and tax-efficient way of making gifts or donations to UK registered charities and also to local, community amateur…
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