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Happy New Year from everyone at Folkes Worton! Here’s our first Tax Update of 2023 – watch this space for our regular monthly updates. New Year Resolutions to Save Tax At this time of year we think about New Year’s resolutions. It is also a good time to start planning…
Ministers to review late payments to small businesses Earlier this month, the Business Secretary, Grant Schapps announced a Government review into tackling late payments for small businesses, while also urging large companies to pay their smaller suppliers promptly. Small businesses routinely suffer from late payments from businesses they supply, which…
Self-Assessment: don’t forget to declare COVID-19 Grants HMRC is reminding taxpayers that they must declare COVID-19 payments in their tax return for the 2021 to 2022 tax year. These grants are taxable and should be declared on tax returns for the 2021 to 2022 tax year before the deadline on 31st…
‘Tis the season of giving, so here’s a timely reminder that employers may make small tax-free gifts to employees and directors if all of the following conditions apply: The cost to the employer is £50 or less It is not cash or a cash voucher It is not a reward…
HMRC will be changing the way they assess profits for sole traders and partnerships. Previously, if you had a year-end between the 6th April and 30th March you were taxed on the profit made on your year-end accounts that falls into a set tax year. This will now change so…
Tax Increases and Public Spending Cuts The new Chancellor Jeremy Hunt had warned the public and the financial markets that his Autumn Statement would include ‘eye-watering’ cuts in public spending and tax rises for those with the ‘broadest shoulders’. Unlike the ill-fated Fiscal Event of 23rd September, the Government ‘rolled…
HMRC’s new VAT penalties start from 1st January 2023 For VAT periods starting on or after 1st January 2023, HMRC is replacing the default surcharge with separate penalties for late returns and late payment of VAT. At the same time, HMRC is introducing a new approach to charging interest on late-paid VAT. The…
Here’s a brief overview of today’s Autumn Statement from the Chancellor, Jeremy Hunt: Personal Tax Reduction in the 45p threshold to £125,140 from £150,000 (this will cost Additional Rate Taxpayers £1,250) All other allowances and thresholds to remain the same until the end of March 2028 (which means that the…
In the light of a recent article in The Times last week, the HMRC Press Office issued the following tweet: “By acting quickly to pause payments and implement additional checks on claims we have protected £46 million of public money. We have also arrested 8 people suspected of conspiring to…
HMRC is reminding their Self-Assessment taxpayers that they must declare COVID-19 payments in their tax return for the 2021 to 2022 tax year. More than 2.9 million people claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2022. These grants are taxable and should be…