The cash basis for unincorporated businesses to calculate profits – is it worthwhile?
The cash basis has been in existence for 10 years now, and it is a “simplified” regime to calculate taxable profits based on income when received and expenses when paid. This basis ignores debtors – monies not paid to you by customers and creditors – bills you have not paid yet, and also ignores prepayments, […]
How often do you need to locate your National Insurance number? It’s saved somewhere…!
HMRC customers with an Apple iPhone can now store their National Insurance number in their Apple Wallet either online or through the HMRC App. Employees may provide their proof of National Insurance number using their Apple Wallet rather than through the HMRC National Insurance number confirmation letter. Employers should be aware this is genuine and […]
Company accounts disclosures – more details will be in the public domain shortly
The Economic Crime and Corporate Transparency Bill has been through the House of Commons and is at Report stage in the House of Lords – just a couple of steps away from Royal Assent. One of the effects of this will be additional reporting with accounts filed at Companies House, and as a result a […]
Is a tax return still needed to be filed with HMRC?
From tax year 2023 to 2024 onwards, the Self-Assessment threshold for HMRC customers taxed through PAYE only, has changed from £100,000 to £150,000. Affected customers do not need to do anything now as the Self-Assessment threshold for 2022 to 2023 tax returns remains at £100,000. They will receive a Self-Assessment exit letter if they submit […]
Benefits provided to employees and directors? The P11d forms need to be submitted online
The deadline for filing the P11d forms to report benefits in kind in respect of directors and employees for 2022/23 is 6 July 2023. Benefits might include inter alia; a company car or van, fuel provided for personal use, private health contributions, accommodation provided rent-free or below market rent, school fees, interest free or cheap […]
Do you have a tax debt? Interest is charged on late payment.
If you have a tax debt already or are considering entering into a Time to Pay arrangement with HMRC, you need to be aware of the impact of late payment interest. With the interest rates continuing to rise, this charge has increased again, for the fourth time this year, and the 9th increase in the […]
Payroll and withdrawal of Employer’s allowance
Employers can, subject to certain exceptions, claim £5,000 Employers Allowance – a reduction in the Employers National Insurance rates payable to HMRC. However, if the Class 1 Employer’s liability exceed £100,000 in the previous tax year, then the allowance is not claimable. Care is needed to both ensure that a valid claim can be made, […]
Are you an “accidental landlord” and are you disclosing the income to HMRC?
Are you an “accidental landlord” and are you disclosing the income to HMRC? An accidental landlord is one where a property owned was never intended to be let out, but for a variety of reasons it has been. This might be due, for example, to inheriting a property that has not been sold, or being […]
Will ChatGPT transform how we process tax?
Generative artificial intelligence such as ChatGPT will have significant implications for accountants but AI tools need training to be a true expert in tax and accounting, argues Russell Gammon, chief solutions officer, Tax Systems Since ChatGPT was unleashed on an unsuspecting world in November last year, the technology landscape has changed irrevocably. With millions of […]
Accounting for VAT on fuel private usage
HMRC publish annually the scale rates to be used to account for VAT where VAT is reclaimed in full on fuel but there is a private element to the motoring costs. The rates to be used from 1 May 2023 were released on 21 April 2023 and the link is shown below. The VAT amount […]
