 We love a list that gets right to the point. So here is our key points for businesses in the UK from the Chancellor's autumn budget 2021:
1) Dividends: rise of 1.25% tax after nil band from 7.5% to 8.75% and higher rate band up from 32.5% to 33.75% from April 2022 2) Capital gains tax (CGT): with immediate deadline to report & pay after selling a UK residential property has increased from 30days to 60days after completion date. Giving landlords more time 3) Corporation tax: will rise from 19 % to 25 % from April 23. Businesses with profits less than £50k will get a small profit rate which is still 19%. For profits above £50,000 there is a tapered rate with bands & %’s going up to the 25% rate. 4) National insurance: Increase 1.25% national insurance contribution for all (employees, employers & self-employed) from April 2022. 5) National living wage: increase from £8.91 to £9.50 p/hr. 6) R&D tax relief: to be expanded to cover cloud computing & data costs now also as well. 7) Business rates : Rates revaluation cycle changed from 5 years to 3 years from 2023. New Improvement Relief, for businesses to improve/extend property, meaning they won’t pay additional business rates in 12 months after improvements. Plus a 50% business rates discount from April 2022 (to max £110k) for 1 year for retail, hospitality & leisure. 8) Annual investment allowance (AIA): £1m Annual Investment Allowance (AIA) extended to March 2023. If your business is effected by these changes and you want help and support contact us today By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.
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 Tax Affinity Accountants have many branches The 5th SEISS grant
As the UK returns to normal after the Covid 19 pandemic, all government support for sole traders, self employed and small and medium sized business is winding down. Meanwhile HMRC is increasing efforts to maximise tax revenues. In some cases going back several years to find any unpaid taxes and add on interest and fines to the amounts. It use to be the anything under £50 HMRC wouldnt bother to chase but now every pound matters. The deadline for the 5th SEISS (self employed / self assessment) grant is 30th Sept 2021 only a few days away. The 5th SEISS grant is different from the previous ones as there are two levels available and the claimant needs to declare how trade as been negatively effected (reduced activity / capacity / demand) between 1st May 2021 to 30th Sept 2021. And requires that the 19/20 and 20/21 self assessments (personal tax returns) be completed. There is also a relevant basis period applicable and a financial impact declaration (FID). This has caused a lot of members of the public confusion and worry on how to claim for this correctly and not make an incorrect that can be picked up by HMRC and asked to be paid back. So we at Tax Affinity Accountants are here to help and support everyone who needs help with this regard. We can help complete the paperwork and documentation required to claim the 5th grant without the hassle and time spent trying to work out and worrying if you have declared everything correctly. Contact us via our online form here. Bounce Back Loans We have also noticed that a lot of banks are not telling customers clearly about their options (ensured by the goverment) when it comes time to start making repayments for the bounce back loan. In short you have 3 options before having to make repayments in full when your business and you may not be able to afford to.
So be careful to ensure you and your business can afford to pay the BBL back before paying back your bank. And if you plan wisely and your bank allows you could use all of the options in turn. Our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in these or any other matters. Feel free to Contact Us via our online form. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  The 5th and final (so far advised) grant from the government for self employed people impacted by Covid 19 (coronavirus) is now open and available to claim.
The 5th grant is different from the previous four as there are two levels available and the claimant needs to declare how trade as been negatively effected (reduced activity / capacity / demand) between 1st May 2021 to 30th Sept 2021. And requires that the 19/20 and 20/21 self assessments (personal tax returns) be filed. There is also a relevant basis period applicable and a financial impact declaration (FID). This has caused a lot of members of the public confusion and worry on how to claim for this correctly and not make an incorrect that can be picked up by HMRC and asked to be paid back. So we at Tax Affinity Accountants are here to help and support everyone who needs help with this regard. We can help complete the paperwork and documentation required to claim the 5th grant without the hassle and time spent trying to work out and worrying if you have declared everything correctly. Contact us via our online form here. And because our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in this matter. So feel free to Contact Us via our online form. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  Tax Affinity with branches across South London serving the whole UK We have noticed that a lot of tax payers are missing out on claiming the 4th Self Employed grant and wanted to let everyone know not to miss out.
The Self Employed (SEISS) 4th and 5th grants were announced in March 2021 and are supposed to run to the end of Sept 2021. The 4th grant (April to June) is the same criteria as the previous ones (up to max £7500 of 80% of profits). While the 5th grant (July to Sept) will be banded with those who have seen a greater than 30% reduction in income eligible for 80% and those who have seen income fall less than 30% receiving a grant of only 30% (up to max £2,850). The cut off date for eligibility was 2nd March 2021 so the 19/20 tax return had to be submitted by then. And both will take into account 2019/20 tax returns figures filed. You still need to qualify with over 50% of your income coming from self employment rather than other sources. Many tax payers are hesitent because they are applying for mortages and remortgages where the lenders are unfairly saying to them they look unfavourably at the grants coming in. And this leads to tax payers being unfairly restricted on eligible grants or many other personal reasons such as divorce or employment. And because our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in this matter. So feel free to Contact Us via our online form. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  Tax Affinity Accountants have high street branches within easy access UK GDP rises slightly in Quarter 4 of 2020 showing positive signs of economic growth according to the ONS UK (Office of National Statistics). This is despite a huge drop in GDP since the start of the covid 19 pandemic, cornavirus lockdowns and Brexit.
The ONS reported a rise of 0.97% from 498,000,000 Quarter 3 to 504,000,000 in Quarter 4 after massive 20% drop from 529,000,000 to 426,000,000 in Quarter 1 to Quarter 2 in 2020. Why is GDP important and why does mainstream media not report it? - Well the short answer is they are journalists not economists so they dont understand it as well as what a certain celebrity is wearing to the oscars etc. And the its easier to focus on nonsense that sells than statistics and fact that fly over the head of most readers. But business owners and directors and CEO's need to know what is happening to be able to plan and steer their businesses successfully through the current turbulent times. Importantly, quarter 1 2021 figures (ie January to March 2021) are yet to compiled these undoubtedly show a truer picture of the economy in its most recent state especially after Brexit on the 1st of January with their backlogs at the ports and problems with shipping in and out of Europe. British politicians were quick to report the 0.97% increase (without stating the figures, obviously) and say that their goverment support policies were helping but this hardly cover the 20% drop previosuly and what Quarter 1 GDP 2021 will show. Certainly there was pent up sales demand due to the lockdown and as soon as the lockdown was eased, UK shoppers returned in their droves to high street stores, pubs and gyms. But with the looming end of government furlough support in September 2021 the number of unemployed is likely to jump up again denting GDP towards the middle to end of 2021. Nonetheless all things considered this is positive sign that the UK may have bypassed a recession and having a complete wash out for 2021 like for 2020. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  Tax Affinity Accountants local branches We have a lot of limited company owners asking about IR35 - the HMRC rule about removing some rights to work as a limited company personal service provider and be counted instead as an employee due to pay tax and ni at the PAYE tax rates.
Obviously many consultants and contractors are worried that they will end up having to pay more tax some at 40% higher rate of income tax rather than the 19% corporation tax previously paid on their limited company. So we have compiled a simple questions & answer to help answer common questions that arise: Q. As a consultant / contractor, can I work inside and outside IR35 on different jobs? A. Yes. It is possible to have one job found outside IR35 and another to be inside IR35. Each job will be assessed on its own merits as per the IR35 status tests. IR35 applies on a case-by-case basis. Q. If I accept an job inside IR35, will I be worse of financially? A. Yes. An inside IR35 job means you have to pay all PAYE/NIC deductions as per a normal employee on all your gross income. This will be made at sourc and have a direct impact on your take-home pay. If you were working through your own Limited company previously. You were paying tax on net income (after expenses). However, there are options such as re-negotiating and increasing your day rate, looking for contracting work that is considered outside IR35. Working for more than one company and making sure your paperwork proves your outside IR35. Contracting through our purpose built umbrella company to help clients. We have many options available. Q. If I disagree with my status given, is there anything I can do to challenge it? A. Yes. When your client has assessed your IR35 status they should provide you with a Statement Determination Statement (SDS) which will detail the reasons for your Outside/Inside IR35 status. Once you have received this, you can dispute the determination. The client has 45 days to respond. If you choose to dispute your IR45 status, we recomend you gather evidence to support the reasons which you believe the decision is wrong. Q. Will HMRC be looking to recover backdated tax for previous jobs it deems to be inside IR35? A. No word yet. When the client decides your inside IR35 after April 6th 2021 it means that they have to make the PAYE & NI deductions after that date. If you were in the engagement prior to 6th April, the responsibility for IR35 remains your own. So, your status before will remain be your responsibility and can hold a retrospective liability risk. HMRC has previously said it will not proceed with targeted campaigns of those who have had a change in status and IR35 was first started in the public worker sector such as NHS and local authority previously and this was not the case then. Having seen many clients go through this a couple of year ago when IR35 was introduced to public sector worker. We managed to successfully guide most of them to a tax efficient solution. So are now very experienced to help the new batch of private sector IR35 workers after 6th April 2021. Get in touch today and we will be happy to help you keep more of your hard earned money. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  Tax Affinity Accountants UK Spring Budget 2021 key points for business owners & SME's
At Tax Affinity we believe in improving the financial lives of every person in the world. Each time the UK treasury government makes budget announcements we spend time reading through the information to help our clients support our clients with the best information to drive their businesses forward even during a down turn. The key points are listed below for a quick guide:
By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  At Tax Affinity we believe in improving the financial lives of ever person in the world. Enriching each persons life to be better today and tomorrow. We do that by remaining at the forefront of business tax and finance and constantly researching and striving for knowledge. Making sure we are the first to know and advise on all things new so we can improve everyone's financial life.
With the rise of Bitcoin (BTC) and other virtual currency such as Ethereum (ETH), Litecoin (LTC) and Dogecoin etc. Many investors are looking to cash in on the rise of the new wave of crypto currency appearing in the news. Experts know how to mine such currency not just buy and sell it and the value of keeping the currency in electronic wallets to avoid fraud or theft. They understand the blockchain and how to use GPU's and graphics cards to help them increase their investments. Plus the places they can spend and buy more coins and tokens. With the rise of established business and brands saying they will accept and have purchased Bitcoin; cryptocurrency is here for the long term even if the government and central banks don't like it. And with this rapidly changing financial landscape tax authorities around the world are scrambling to make tax laws and rules to bring it within their taxable structure. So anyone investing in, buying or generating virtual curency will become subject to tax depending on the way it is transacted and declared. A sobering thought when virtual currency was always supposed to a currency for the people by the people. This is where a tax expert in crypto currency like Tax Affinity Accountants is essential to help you keep as much of your hard earned money as possible. We make sure to keep researching and checking with the tax authorites for the latest rules and regulations. Powering ahead to the forefront of crypto currency support. Tax Affinity are already succesfully helping both businesses and individuals with their cryptoinvestments knowing that the vast majority of accountants and tax advisors in the world are lack the knowledge an skill to support them at this crucial time. After all its how you do things at the start that defines what will be the end result and leaving financial matters to the last minute usually ends up in misery. So get in touch with us today when you still have time to invest wisely and keep more of your hard earned wealth and investments. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Crypto currency, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert cryptocurrency business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. @Tax_Affinity #bitcoins #Ethereum #dogecoin #taxaffinity #recommended #tax #accountant #accountants  HMRC has extended the self assessment deadline to 28th Feb 2021 due to Covid 19. Allowing tax payers another month to ensure they have their persoanl tax return submitted and tax paid by then.
Normally each the deadline each year is the 31st Jan. But this year as a last minute policy announced a few days before the deadline HMRC extended it saying they will not charge the late filing penalty until after the 28th Feb. And if tax was due the interest for late payment will not be applied until after 28th Feb also. However a close estimate of the tax payable should be paid by the 31st Jan to avoid interest. If readers have not had their 2019/20 self assessment / personal tax return done. Then they should urgently contact us today to ensure it can be done by the 28th Feb 2021 deadline. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  The UK Chancellor announced one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring.
Businesses are advised to contact their local authority for discretionary grants and Local Restriction Support Grants worth up to from £1300 to £3,000 a month and extension of furlough scheme. This follows the Prime Minister’s announcement that business will be closed until at least February half-term in order to help control the coronavirus. The cash payment is accepted by the local authority is provided on a per-property basis to support businesses through the latest restrictions Chancellor Rishi Sunak also said: A further £594 million pounds is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities as soon as possible. The new one-off grants come in addition to grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen. The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March. More information
By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. |
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