HMRC business record checks

According to insurers PFP, HMRC business record checks are on the increase.  In the tax year 2013/14 HMRC checked 5,515 sets of business records compared to just 3,431 checks in 2011/12, an increase of 60%. Interestingly, of the records checked 73% were found to have no significant errors. Since November Read more…

Employment Allowance uptake

Data released by HM Treasury at the end of July reveals that 725,000 employers across the UK are benefitting from the Employment Allowance. The allowance reduces the amount of employer National Insurance by up to £2,000 in a full tax year. The deduction is automatically made by most payroll software Read more…

50% off qualifying capital purchases

The Finance Act 2014 introduced a temporary increase in the Annual Investment Allowance (AIA). From 1 April 2014 (for companies) and 6 April 2014 for the self-employed, the ability to write off qualifying capital purchases against your profits for tax purposes increased to £500,000. This generous tax allowance will reduce Read more…

Transfer tax allowances to your spouse

The Finance Act 2014 has introduced limited flexibility for married couples, or couples in a civil partnership, to transfer a part of their personal allowance to their partner. The amounts involved are not substantial and there are a number of conditions that must be met. These include: The spouse receiving Read more…

When should you contact HMRC?

A cynic might say that you are required to contact HMRC when you are likely to owe them more money. Realistically, the opposite is also true: you should advise HMRC of any changes that could reduce your tax position.  The following notes are extracted from HMRC’s website and set out Read more…

UK economy recovers

Its official, in the second quarter April – June 2014 the UK gross domestic product grew by 0.8% and is now bigger than it was before the financial crisis that began six years ago. The state of the economy always attracts politically biased commentary, but reading between the lines it Read more…

Tax Diary August/September 2014

 1 August 2014 – Due date for Corporation Tax due for the year ended 31 October 2013.  19 August 2014 – PAYE and NIC deductions due for month ended 5 August 2014. (If you pay your tax electronically the due date is 22 August 2014.)  19 August 2014 – Filing Read more…

VAT – pick and mix

There are a number of VAT schemes that benefit registered businesses. For example:  Cash accounting If you are eligible and the scheme is suitable for your business, then using the cash accounting scheme enables you to pay VAT when your invoice is paid and not when you issue the invoice Read more…

SITR, SEIS and EIS

From April 2014 a new investment relief has been created, the Social Investment Tax Relief (SITR). Investments must be in a social enterprise, which means a community interest company, a community benefit society, or a charity. The money raised must be used for the enterprise’s chosen trade or charitable purpose. Read more…

Why management accounts are helpful

Management accounts, produced on a regular basis, will give you and your professional advisor the information you need to manage your business and keep your planned profit growth on-track. They also provide the basic data that you will need to minimise your tax payments and keep your business on track Read more…