Tax Planning

Plan and reflect or reflect and plan? The first few months of the year generally allow for a reflection on the previous year and then planning ahead for the current year, however planning ahead this year looks like it could be even more difficult than normal.   House prices are growing, albeit slowly, mortgage rates…

From 1 April 2023 there are a few changes to the ‘super-generous’ R&D tax relief rules: The Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%, The SME additional deduction will decrease from 130% to 86% and the SME tax credit (surrender) rate will decrease from 14.5% to 10%. Additional costs…

As we approach another tax year end our thoughts turn to any tax planning that can be undertaken. You can find a link to our tax planning guide as a reminder of the basic planning opportunities to be considered each year. But with a Budget looming on 15 March 2023, it would be prudent to…

Do you jointly own a property? Is this actually funded/owned other than 50:50? Are you a high earner and your spouse a basic earner?   If you have answered yes to these, then tax election notification Form 17 is an easy way to help save tax as a couple! Without this, HMRC will default to…

Many workers who partly or wholly work from home (WFH) can, either, be reimbursed for this tax free (if their employer permits) or claim a valid tax deduction for this expense. HMRC have now amended the special rules that they introduced during Covid for the maximum WFH deduction that can be claimed. For employees (including…

Divorce and CGT Under current legislation, married couples and civil partners can transfer chargeable assets between them without incurring CGT under the ‘no gain, no loss’ principle. However, for separating couples, this only applies until the end of the tax year of separation.   A couple who separated in February 2022 could therefore only transfer…

Incorporated businesses have until 31 March 2023 to claim 130% capital allowances on expenditure on certain fixed assets. This ‘super deduction’ was introduced in April 2021 to help companies continue to invest in plant and machinery after the pandemic.   Assets must be purchased new to benefit from the relief and it does not apply…

As a new year begins we get closer to the Self-Assessment Tax Return deadline of 31 January 2023.   A majority of returns are now filed on-line but statistics continue to show that many are still left to the last minute to file. Filing earlier means you can avoid any last minute issues with information,…

It has recently been reported that the tax debt owing to HMRC as at 30 September 2022 stands at £46.9 million, and they are taking positive action to recover this from both individuals and business.   The profession has certainly seen a much more proactive approach from HMRC, and given the financial pressures on all,…

As VAT repayment traders, farmers have long enjoyed the privilege of being able to submit their VAT returns late with impunity. Beware. For VAT Returns for periods beginning after 1 January 2023 late submission will have consequences, even for those due a refund. Each late return will attract a point and, for traders submitting quarterly…