Tax and Business News
Tax is constantly changing
I share articles here to keep people up to date on the current position
James McBrearty in TAXAdviser magazine
As a fellow of my tax association, I was featured in the February 2021 issue of TAXAdviser magazine: The feature discusses my tax career and how the ATT qualification, ATT fellowship and volunteering for the association have all had a positive impact: James McBrearty...
Digital tax introduction postponed until 2026
It has recently been announced that the digital tax system introduction has been postponed from 2024 to 2026.Making Tax Digital for Income Tax Self Assessment (MTDITSA) is the new system that applies to those with income from either properties or...
Tax changes following the autumn statement 2022
On the 17th of November there were several changes announced that will affect tax for future years. Personal Tax & National Insurance bands The thresholds at which these apply are to be frozen at their current levels until April 2028. (For anyone who...
The Growth Plan September 2022
** Many changes announced in the Growth Plan have now been abandoned as below ** On Friday 23rd September, the previous Chancellor announced several plans that will affect individuals and the self-employed: 1% Reduction in income tax From April 2023, it is planned to...
Could completing your own 2022 tax return actually cost you money?
Sometimes people make the mistake of thinking they can try to save money by completing their own tax return, rather than engaging the help of a professional. Unfortunately, there are several areas to consider when looking at the costs of professional help and the...
HMRC Home working claim changes for 2023
As expected, HMRC has now changed the home working allowance claim regulations for the year to 5th April 2023.During the pandemic, there was a special allowance available where you could claim the fixed home working rate for a whole year even if you only worked from...
The 2022 Paper Tax Return
The 2021/22 tax year ended on 5th April 2022, tax returns for that year can now be submitted.It is highly recommended that returns are completed as early as possible in the year, that way nasty surprises are avoided. By leaving things later in the year, there is less...
National Insurance changes from July 2022
In the recent Spring Statement, several changes to National Insurance were announced.These are not straightforward, and this is further compounded by only applying part way through the new tax year - from 6th July 2022 onwards.The reason why the changes are not...
Making Tax Digital postponed until 2024
HMRC had been planning to start digital tax from 6th April 2023, however that has now been postponed until 6th April 2024. There have also been some further details of digital tax record-keeping. You do not have to input your income and expenses straightaway if you do...
National Insurance increase from April 2022
From April 2022 the rate of National Insurance is to increase by 1.25%.This will apply to both employees(Class 1) and the self-employed(Class 4.)The increase won't initially affect those above state pension age.However from April 2023 the increase is renamed as a...
Dividend Tax Increase from April 2022
The rate of tax on dividend income is to increase from April 2022. At present, there is also a £2,000 annual tax-free allowance for dividend income.There have been no changes announced to this annual limit, however the rate of tax that is charged on dividends above...
Taxhelp celebrates 15 years in business
I launched taxhelp.uk.com back in 2006, to specialise in helping the self-employed. It has now been 15 years since I started the business, and I am pleased to have been able to help hundreds of small business owners - taking away the worry and freeing up their time...
SEISS Grants and accounting dates
People are now starting to complete their 2021 tax returns, which cover the tax year 6th April 2020 to 5th April 2021.If your accounting year ends on 5th April 2021 then there are no issues - any SEISS grants that you have received in the tax year will align with your...
SA316 – HMRC Notice to File a 2021 Tax Return
HMRC has started issuing the 2021 notices to complete a tax return.These can either be received through your online personal tax account, as above, or through the post.The postal form is called a SA316 form.The notices relate to the 2020/21 tax return year, which...
HMRC 2021 Paper Tax Return Form
The new paper tax return form has been released for 2020/21 by HMRC The 2021 tax year covers the period 6th April 2020 to 5th April 2021. If you are submitting a paper tax form, this has to be submitted to HMRC before 31st October 2021 in order to avoid an automatic...
SEISS grants 4 and 5 announced
It was announced in the Budget that there would be two SEISS grants: Fourth Grant - covering three months at 80% of average trading profits. Paid out in a single instalment and capped at £7,500.You must be a self-employed individual or a member of a partnership.The...
Tax Allowances Frozen to 2025/26
In the Budget it was announced that, rather than increase in line with inflation each year, several personal tax allowances are to be frozen.The below allowances will remain at the 2021/22 levels through until 2025/26: Personal Allowance - £12,570 Basic Rate Band -...
HMRC 31st January 2021 Return Deadline Extended
The normal deadline for submitting an online tax return is the 31st January after the year end.For 2020 tax returns the deadline would usually have been 31st January 2021.It has been announced that late return penalties will not be issued on 31st January this year......
Self-serve HMRC time to pay for 2021
HMRC had already allowed people to defer payment of their 31st July 2020 second payment on account until 31st January 2021.Now, that is being extended through a new time to pay arrangement that will enable people to set up their own online payment plan to cover any or...
The Winter Economy Plan update
The chancellor has announced the winter economy plan, which provides some additional support to individuals and the self-employed: SEISS Grant Extension There are to be two further payments under the Self-Employed Income Support Scheme.These payments are to cover the...
Countdown to HMRC Digital Income Tax in 2023
NOW POSTPONED to 2024: Making Tax Digital postponed until 2024 (taxhelp.uk.com) HMRC has recently announced the proposed timescale to introduce the next stage of Making Tax Digital (MTD) for Income Tax. Who does HMRC Digital Income Tax affect? Previously MTD applied...
taxhelp celebrates 14 years in business
I started taxhelp.uk.com back in 2006, specifically to help the self-employed and individuals with their personal tax.Having helped many clients through the last downturn in the economy, from 2008 - 2013, I am sure that their will again be many success stories from...
When is the best time to start a small business?
You could actually find that it may be during a downturn... as many perceived obstacles are actually opportunities if you are aware of them and take advantage.Having started my own business in 2006, I have both grown my own business during the last downturn from...
Confirmation of payee for bank payments
In order to reduce fraud, confirmation of payee has been introduced for bank payments.This service aims to tie up payments to the correct account name, whereas in the past only the sort code and account number was used. At present, the new systems work for faster...
Small Business Saturday 2020 & the #SmallBiz100
Many people will be looking to promote their business in the current market, something I can highly recommend is Small Business Saturday and also the Small Business Saturday 100.There are many great opportunities to gain publicity for your small business, and there...
SEISS second payment announced
The Self Employed Income Support Scheme (SEISS) has been extended to cover a further period of three months.The second payment, which will be the final one under the SEISS scheme, is to be capped at £6,570.The second grant will open for applications in August, and...
WFH – Homeworking Expenses for Employees
With many employees currently working from home, there have been two welcome concessions for HMRC regarding the tax treatment of expenses. Personal purchases of equipment to be used for work purposes.Tax relief on homeworking expenses. Personal purchases of equipment...
Remember that SEISS grants are taxable income
This week should see the first payments from the Self Employed Income Support Scheme (SEISS) being made to claimant's bank accounts. However, it is important to remember that this grant is classed as taxable income and will need to be accounted for. How much to set...
Claiming the HMRC SEISS grant
HMRC has been able to move up the expected timescale for claims under the Self-Employment Income Support Scheme (SEISS.) They are now starting to contact those who qualify, and aim to have contacted them on how to proceed with a claim, within the next few weeks....
Bounce back loans launched
The government has launched the bounce back loan scheme, which may be of interest to you or someone you know. These are loans of between £2,000 and £50,000 over 6 years specifically for small business. They are available up to a maximum loan amount...
HMRC notice to complete a 2020 tax return
HMRC has been issuing the notices to complete 2020 tax returns - if these arrive in the post they are called a SA316 form.If you have a personal tax account, then you will receive a message (as above) containing the same information. These notices to complete a tax...
HMRC 2020 tax refunds in only 7 days
Due to starting preparation work early, I was able to submit the first 2019/20 tax returns online to HMRC on Monday 6th April. These were processed by HMRC online next day, and in the case of refunds these then started their journey through HMRC's checks and systems...
Adapting consultancy businesses during the lockdown
This is a sample handout from my online course - start and grow your own consultancy small business from home. During the current situation, there are many technologies that you can employ to continue helping others through your consultancy business even though you...
HMRC 2020 Paper Tax Return Form SA100
Every year, one of the issues people without an adviser face online is actually trying to find the tax return form itself to complete.This year it is especially important, as HMRC have announced that they are no longer automatically issuing blank printed tax return...
Equipment recommendations for working from home (WFH)
This is a sample lecture from my online course - start and grow your own consultancy small business from home. When people start out in business they can be unsure of what equipment they need – and can either waste huge amounts of money on unnecessary items, or else...
Government help for the self-employed due to coronavirus
The chancellor has just announced the Self-employed Income Support Scheme, due to the coronavirus situation. The scheme aims to pay 80% of self-employed profits, as a taxable cash grant, up to a maximum of £2,500 per month. The scheme is planned to last for a minimum...