 Tax Affinity has high street branches for customers support The new UK Chancellor (yes another one...can you believe the UK had 4 Chancellors in 4 months in 2022) has given his first budget. And as before we have refined the main points and facts for business owners including SME's and entrepreneurs. So you can easily navigate and plan ahead with clarity.
The main points from the budget are: 1. Energy price guarantee for homes will remain at £2,500 extended for only 3 months until end of June. It was set to rise to £3,000 but that has now been cancelled. And no new support announced for business bills. 2. Corporation Tax for a limited company will rise from 19% to 25% from 6th April 2023. Small company's with profit of less than £50k will still pay the lower 19%. But companies with profits between £50k to £250k have to pay between 19% and 25% but are allowed to claim marginal relief. Company profits over £250k will be taxed at 25%. And companies with group ownership of other companies may end paying close to 26.5% (effectively) because the corporation tax for Group Companies was increased also - sadly all important details missed by the main stream media. 3. Tax-free yearly allowance for pension cash out to rise from £40,000 to £60,000 after being the same for the past 9 years. 4. Fuel duty (tax) frozen so the 5p cut to fuel duty/tax on petrol and diesel which was due to end in April, has been extended for another year. 5. Maximum amount a worker can accumulate in pensions over their lifetime before paying extra tax currently £1.07 Million will be cancelled. Now there is no limit. 6. Tax on tobacco to increase by 2% above inflation for normal and 6% above inflation for hand-rolling tobacco. 7. Those who are already drawing down on their pensions, the total amount they can save tax free under the Money Purchase Annual Allowance is increased from £4,000 to £10,000 from April 2023. 8. 30 hours of free childcare for working parents in England expanded to cover 9 months to three year olds. 9. New £600 "incentive payment" for people becoming childminders, and the rules have been changed in England to let childminders look after more children. 10. Immigration rules to be relaxed for five roles in the construction sector, to ease labour shortages in the Industry. These categories are:
11. Super deduction of 130% will end on 31/03/23 and move back to 100% AIA for plant and machinery purchased and can be used directlty against corporation tax payable. A list of typical purchases is lasting until 31/03/26:
If your worried how these will effect you and need more specific guidance to help your business carry on growing during turbulent times then contact one of our Tax Affinity expert business advisors today (click here). With their countless years of knowledge and expertise they can guide your business to success even in the toughest of economic conditions. 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 your local experts with high street branches On 17/11/2022 Jeremy Hunt the Chancellor for the UK Governments expressed their plans for the coming year and the contents of his autumn budget. As before we have read thorugh the detailed report and listed the main bullet points for small business and the self employed.
Personal Income Tax There are no changes to the personal tax thresholds. And they will remain at the current level until April 2028. This also includes the National Insurance Contribution threshold for PAYE and self employed. Minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from April 2023 Company Dividend Tax-Free Allowance (DIV) The dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023. And this will be reduced even more in 2024-25 to £500. Additional Rate of Income Tax (Higher Tax band) From April 2023, the higher rate band will be reduced from £150,000 to £125,140. Which means anyone earning above £125,140 will now be taxed at the 45%. Apart for Scotland. Annual Investment Allowance (AIA) The Annual Investment Allowance will be permanently set at £1 million to help promote growth in the economy. Corporation Tax (CT600) From April 2023, the Corporation Tax is due to increase to 25% if a company’s profits exceed £250,000. Companies whose profits are between £50,001 to £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at the current level of 19%. Capital Gains Tax-Free Allowance (CGT) Also rumoured before the budget, the threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. Similarly to the dividend allowance, a further reduction will be seen in 2024-25 to £3,000. Employment Allowance (Employer NIC) The Employment NIC Allowance will stay at £5,000 meaning that eligible employers. Road Tax Electric cars, vans and motorcycles will start to pay road tax from April 2025. Energy The household energy price cap has been extended for one year beyond April 2023 but has been made less, with typical bills capped at £3,000 instead of £2,500 a year. 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 - high street branches The UK now has a new PM Rishi Sunak after the shock resignation of the previous PM Liz Truss due the GBP (Sterling) stock market crashing after the announcment of her mini budget just weeks ago. So the new Chancellor Jeremy Hunt announced a raft of reversals listed below that seem to have temporarily reassured the markets and IMF etc. But what are they in a quick short read - well see below: 1. Cut to Corporation tax down to 19% from 25% - cancelled 2. Removal of 45% higher rate tax - cancelled 3. Personal Income tax cut from 20% to 19% - cancelled 4. Alcohol duty freeze - cancelled 5. VAT free shopping for overseas visitors - cancelled 6. National Insurance reverse of 1.25% - retained 7. No stamp duty on first £250,000 - retained 8 First time buyers no stamp duty on first £425,000 - retained 9. IR35 rules reversal - cancelled 10. Removal of bankers bonus cap - retained 11. Freeze on energy bills for 2 years - amended to 6 months only now 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.  No. 1 Rated Expert Accountants & Tax Advisors UK Chancellor, Kwasi Kwarteng announced a series of tax cuts & changes in his mini-budget on 23rd Sept 2022, and yesterday did a U-turn on cancelling the drop from 45% to 40% on the highest tax rate. A quick list of how the mini-budget will affect tax payers is listed below: 1. Income taxes The top rate of income tax for those earning more than £150,000 per annum was reduced from 50% to 45% by a previous Chancellor in 2013 this was planned to be lowered to 40% but has now been cancelled by the government U-turn and will remain at 45%. From 6th April 2023 the rate of income tax on income between £12,571 & £50,270 per annum will be reduced from 20% to 19%. 2. National Insurance reversal Chancellor confirms the 1.25 percentage national insurance rise introduced earlier this year by the previous Chancellor will be cancelled from 6th November 2022 i.e. from December’s payslip onwards. 3. Stamp duty cut Before there was no stamp duty to pay on the first £125,000 of a property’s value. It has now been doubled to £250,000. The no stamp duty threshold for first-time buyers will rise from £300,000 to £425,000. The max property value for first-time buyers’ stamp duty relief will rise from £500,000 to £625,000. 4. Corporation tax stays at 19% Corporation tax rises have been scrapped, the previous Chancellor Rishi Sunak announced that the rate of corporation tax would be increasing from 19% to 25%, from 6th April 2023. So now businesses with profits below £50,000 will stay at the 19% rate, as well as businesses with profits over £250,000 that were meant to pay 25% rate ie everyone stays at 19%. 5. Changes to IR35 From 6th April 2023, the previous IR35 rules introduced in 2017 and 2021 have been reversed. Allowing individuals to contract instead of work as employees again ie self employed off-payroll working through a limited company. The changes mean its up to the contractors themselves to make sure they have the right status and are paying the right amount of tax instead of putting the burden on employers. 6. Strikes legislation The government says it will legislate to stop “militant trade unions” from closing down key infrastructure through strikes. The laws will require unions to put pay offers to a member vote, to ensure strikes can only be called once pay talks have genuinely broken down, he says. 7. Investment zones The government confirmed that almost 40 investment zones will be created with tax breaks for businesses. Areas included are the West Midlands ,Tees Valley, Norfolk and the west of England etc. 8. Energy Bills Freeze household energy bills at £2,500 for a typical household and a price cap on energy bills for commercial properties also. 9. Investment (AIA) Annual investment allowance, the total amount a company can invest tax free, stays at £1 Million. New & start-up companies are able to raise up to £250,000 under a scheme giving tax relief to investors in their business Share options for (PAYE) employees doubled from £30,000 to £60,000 10. Bankers’ bonuses Chancellor confirms the bankers’ bonus cap will be scrapped. 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 have many high street branches HMRC relishes the idea that tax payers will make errors in their tax returns and then they will pay higher taxes or be fines for making errors. The number of errors by members of the public doing their own self assessments has been rising steeply in the last few years and HMRC has been raking in fines for errors. So its very important to try to ensure you make none.
Why? - Well simply mistakes on your tax returns could cost you a lot of hard earned money. Solution? - Avoid HMRC penalties and charges by making sure you don’t commit these mistakes during tax return time by getting an expert like Tax Affinity Accountants (one the most highly recommended accountants in the UK) to do calculate and submit the return for you and sleep easy at night knowing you paid the least tax and everything was correct according to HMRC rules. Key things to keep in double check:
A good tax accountant should save you much more in tax than what he/she charges. And having a Tax Affinity accountant calculate your personal and business tax situation will lead to zero mistakes on your return and a lower tax bill first time every time. Fill out our contact us page to find an office near you and we will be happy to help you sleep easier at night. 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.  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.  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. |
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