Plug-in vehicle grants reduced

December 21st, 2021

From 15 December 2021, the government is making the following reductions to the grants made available for certain electric vehicle purchases. It will provide grants of up to £1,500 (previously £2,500) for electric cars priced under £32,000. There are currently around 20 models on the market that would qualify for this grant. Support for wheelchair […]

Recent damage to electricity distribution network

December 16th, 2021

Many individuals and businesses will have been affected by the disruption in electricity supplies due to recent storm damage. Most of the serious damage that disrupted supplies was reconnected fairly quickly, but for many home and business owners, reconnection has become a protracted affair. A recent letter from the Secretary of State for Business to […]

Time to pay taxes

December 14th, 2021

January 2022 is a ‘taxing’ month. It is the last month to file a self-assessment tax return (electronically) for 2020-21 and avoid late filing penalties. It is also a month when significant tax bills may become payable. Companies Companies that have a 31 March 2021 year end will need to pay any corporation tax due […]

Travel between places of work

December 9th, 2021

A reimbursement of expenditure incurred by an employee in travelling between two or more places of work is not “earnings” and therefore not taxable. This is because the expenditure would be an allowable claim if the employee had paid it out of their remuneration, as he or she would be travelling in the performance of […]

Planning for higher corporation tax rates

December 7th, 2021

We are fifteen months away from a radical upward lift in corporation tax (CT) rates. From 1 April 2023, there will be two rates of CT: A small profits rate which will stay at the present 19% and will apply to companies with profits up to £50,000. An increased main rate, which will be set […]

Tax Diary December 2021/January 2022

December 2nd, 2021

1 December 2021 – Due date for corporation tax payable for the year ended 28 February 2021. 19 December 2021 – PAYE and NIC deductions due for month ended 5 December 2021. (If you pay your tax electronically the due date is 22 December 2021). 19 December 2021 – Filing deadline for the CIS300 monthly […]

Budget bad news 27 October 2021

December 2nd, 2021

Readers should take note of the following changes: Income Tax Allowances frozen: The Income Tax personal allowance and the rates and bands are frozen until April 2026. Whilst this is not a direct tax increase, it does mean that any increases in earnings will be fully taxed and certain taxpayers may find that this process […]

Budget bonuses 27 October 2021

December 2nd, 2021

There was little good cheer in the Chancellor’s announcements to parliament on 27 October. A short summary of the good news is listed below: Annual Investment Allowance (AIA): The £1m limit to claims for tax relief when purchasing qualifying assets was due to return to a more modest £200,000 from the 1st of January 2022. […]

Business gifts and tax

December 2nd, 2021

Business gifts are not allowed as a tax deduction against profits. The legislation treats gifts in the same way as business entertaining expenditure, which is also disallowed. HMRC define a gift as: “… something that is given to a person without receiving anything in exchange. It is offered voluntarily and without any expectation of a […]

Christmas gifts for staff

December 2nd, 2021

Readers are reminded that there is a tax-free allowance for the provision of an annual party or other event for the benefit of staff and their partners. The present limit to tax relief is £150 per head. If this amount is exceeded, the full cost of the benefit is taxable not the excess over £150. […]