The government has confirmed that the rates of corporation tax will remain unchanged, which means that, from April 2024, the rate will stay at 25% for companies with profits over £250,000. The 19% small profits rate will be payable by companies with profits of £50,000 or less. Companies with profits between £50,001 and £250,000 will […]
The government has announced the outcome of the review into the impact of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) on small businesses which includes maintaining the current MTD threshold at £30,000 and design changes to simplify and improve the system. These changes will take effect from April 2026. The government will […]
The existing Research and Development Expenditure Credit (RDEC) and SME schemes will be merged, with expenditure incurred in accounting periods beginning on or after 1 April 2024 being claimed in the merged scheme. The rate under the merged scheme will be set at the current RDEC rate of 20%. The notional tax rate applied to […]
A number of changes were made to the tax regime for pensions for 2023/24 and these include the following, which will remain at their 2023/24 levels for 2024/25: The Annual Allowance (AA) is £60,000. Individuals who have ‘threshold income’ for a tax year of greater than £200,000 have their AA for that tax year restricted. […]
The Chancellor announced major changes to the National Insurance contributions (NICs) system. Employees and NICs The government will cut the main rate of Class 1 employee NICs from 12% to 10% from 6 January 2024 so that employees can benefit as soon as possible. Comment According to the government, this will provide a tax cut […]
Income tax rates The government has stated that the basic rate will remain at 20%, the higher rate at 40% and the additional rate at 45% for 2024/25. The government reduced the point at which individuals pay the additional rate of 45% from £150,000 to £125,140 for the current tax year and this will continue […]
UK inflation fell to 4.6% in October, due mainly to a fall in energy prices, but in general, supplier prices remain volatile. High interest rates and a stagnant economy mean managing your business’s cash and understanding the flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success. Cash […]
There are less than 90 days to go until the deadline for filing your Self-Assessment return online. You need to file your return by 31 January 2024. Filing your return early is an option and means you can find out how much you owe and help you budget and plan for your payment. If you are […]
The sale of shares is an exempt supply for VAT purposes, which means that input VAT on professional fees in connection with the transaction cannot be claimed. However, a recent tax tribunal decision has determined that, under certain circumstances, the input VAT may be claimed. The case concerned the sale of a subsidiary company in […]
Date What’s Due 1 November Corporation tax for year to 31/01/2023, unless quarterly instalments apply 19 November PAYE & NIC deductions, and CIS return and tax, for month to 5/11/23 (due 22/11 if you pay electronically) 1 December Corporation tax for year to 28/02/2023, unless quarterly instalments apply 19 December PAYE & NIC deductions, and […]
