Pay your tax on time – interest charges rise again on late payment?
Following the recent decision to increase the Bank of England base rate to 4.25%, HMRC has announced increases to both the interest charged on late paid tax and the rate paid on repayments of tax. As HMRC interest rates are linked to the Bank of England base rate, the 23 March 2023 increase from 4% […]
P11D Benefits in Kind – electronic filing only!
The HM Revenue and Customs (HMRC) February employer bulletin announced that you will no longer be able to submit P11D forms in paper format from 6 April 2023. Paper forms sent to HMRC on or after 6 April 2023 will be rejected as they will not be in the prescribed format. This means that any […]
Salary…. or not…. or dividend?
The tax system is complex – and it does not get any easier!! Changes to the tax system from April 2023 make tax planning increasingly more problematic. The corporation tax rate was 19% in 2022/23 – but from April 2023, it could be 19%, or 26.5% on some profits or 25%. Dividends taxable at 0% […]
Online sellers targeted for unpaid tax
HMRC has information on thousands of online sellers who have failed to pay tax on sales over the internet Sellers on eBay, Etsy and Facebook Marketplace are among thousands who have received HMRC nudge letters with details about their potential tax liability. The campaign started in January and the letters contain individual case reference numbers, […]
Inheritance tax – are you affected?
The Nil rate band for estates has been frozen at £325,000 since 2009/10 It is likely to be at this level until at least 2028, despite house prices having risen significantly over this period. There is a further Nil amount of up to £175,000 available to those passing on a qualifying residence on death to […]
Directors’ loans benefit from 2.25% interest rate
Despite the rise in interest rates, directors’ loans are still enjoying a low 2.25% rate, explain Chris Etherington, tax partner, and Alex Foster, partner, RSM With the Bank of England base rate steadily increasing over the last year to 4.25%, employees and directors in receipt of loans from their companies may have been expecting a […]
Employees in the business – could they claim expenses against tax?
Employees have limited expenses which can be claimed and they need to be incurred “wholly and exclusively” in the performance of their duties. Expenses that serve a dual personal and business purpose are not claimable. An example is ordinary clothing worn at work. Clothing that is worn both in work and out of work obviously […]
Advisory fuel rates
HMRC has published the first quarterly advisory fuel rates for 2023 From 1 March 2023, the rates for electric cars increase by 1 penny to 9p per mile. The rates for petrol cars and diesel cars fall by between 1p and 3p per mile depending on the engine size of the car. The rates for […]
National Minimum Wage increases from April 2023
The National Living Wage and National Minimum Wage rates change on 1 April 2023. Make sure you update your payroll so your workers get paid at least what they are legally entitled to. The National Living Wage applies to workers aged 23 and over. This was introduced on 1 April 2021. The rates are as […]
Paper tax returns will no longer be sent to taxpayers
HMRC is writing to 135,000 self assessment taxpayers who file on paper telling them to move online as support for paper filings will be limited In future, paper tax return forms will have to be ordered by phone as they will not be sent automatically to any taxpayers, regardless of their ability to complete filings […]
