Smart Strategies for Reducing Tax and Increasing Profit for the Self-Employed

Navigating the financial landscape as a self-employed professional can be both exhilarating and challenging. While self-employment offers freedom and flexibility, it also means you must manage your own tax planning and accounting. At Tax Affinity Accountants, we understand that every pound counts. Our expert team is dedicated to helping you reduce your tax liability, maximize deductions, and boost your profits—so you can focus on growing your business.

Understand Your Tax Landscape for Self-Employed ProfessionalsOne of the biggest challenges for the self-employed is keeping up with ever-changing tax regulations. Understanding your tax landscape is the first step toward effective tax planning and reducing your tax bill.

• Maximize Your Tax Deductions: As a self-employed individual, you’re entitled to various deductions such as home office expenses, travel costs, and business-related expenses. Knowing which deductions apply to you can significantly reduce your taxable income.
• Stay Informed on Tax Law Changes: Tax laws evolve each year. By partnering with Tax Affinity Accountants, you benefit from up-to-date guidance that ensures your tax strategy is always in line with current regulations.

Our proactive approach to tax planning means we continuously monitor changes in tax legislation, so you never miss an opportunity to save.

Tailored Tax Planning: Your Roadmap to Financial SuccessEffective tax planning isn’t a one-size-fits-all solution—it requires a tailored strategy that reflects your unique business model and financial goals. At Tax Affinity Accountants, we create customized plans to help you reduce tax liabilities and increase profits.

• Year-Round Tax Planning: Don’t wait until tax season to get organized. We work with you throughout the year to forecast your tax liabilities, enabling informed financial decisions that lower taxable income.
• Expense Management and Record-Keeping: Accurate record-keeping is essential. We help you document every deductible expense, ensuring that you claim all available tax deductions and credits.
• Optimizing Business Structure: The way you structure your business—whether as a sole trader, partnership, or limited company—can significantly affect your tax bill. Our expert advice on business structuring helps minimize your tax burden while protecting your interests.

Strategies to Increase Profitability for Self-Employed EntrepreneursReducing your tax liability is only one aspect of achieving financial success. Increasing your profitability requires a comprehensive approach to financial management and strategic reinvestment.

• Effective Budgeting and Forecasting: A clear budget and detailed financial forecast reveal where your money is going, enabling you to reinvest in areas that drive growth and increase profits.
• Smart Business Investments: Profits are not solely about cost-cutting; they’re also about investing in your future. Whether you’re upgrading technology, enhancing your skills, or exploring new markets, strategic reinvestment can yield significant returns.
• Operational Efficiency: Small changes in how you manage your operations can lead to substantial savings. By streamlining processes and automating repetitive tasks, you can reduce expenses and improve overall efficiency.

Why Choose Tax Affinity Accountants for Expert Tax and Accounting ServicesAt Tax Affinity Accountants, our commitment is to empower self-employed professionals and small business owners with top-tier financial strategies and accounting expertise.

• Expert Guidance: With years of experience in tax planning, accounting, and financial strategy, our team is uniquely equipped to help you navigate the complexities of self-employment taxes.
• Proactive and Personalized Service: We offer proactive support year-round, ensuring your financial strategy adapts to any changes in tax laws or market conditions.
• Trusted Financial Partner: When you choose Tax Affinity, you’re not just hiring an accountant—you’re partnering with a team that cares about your financial success and long-term growth.

Take the Next Step Toward Reducing Taxes and Boosting ProfitReducing tax liabilities and increasing profit are critical to your financial success. With strategic tax planning, personalized accounting services, and expert financial advice from Tax Affinity Accountants, you can secure a brighter financial future for your business.

Ready to take control of your finances?
Contact us today for a no-obligation consultation and discover how our tailored strategies can help you save on taxes and boost profitability.

Tax Affinity Accountants
Expert advice. Proactive solutions. Financial success.

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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As we close the books on December and January, Tax Affinity Accountants couldn’t be prouder of the incredible results we delivered for our clients during this crucial period. The Self Assessment deadline for HMRC has come and gone, and once again, our clients are experiencing the benefits of working with a team that not only meets deadlines but ensures the best possible tax outcomes. Our firm’s dedication to providing personalized, efficient, and effective tax services has proven to be invaluable during one of the busiest times of the year.

The numbers are in, and we’ve exceeded expectations across the board. With the highest number of referrals in our history, we are humbled by the trust our clients continue to place in us. Our reputation for delivering outstanding results has never been stronger, and as a result, more and more people are turning to Tax Affinity Accountants for expert guidance on how to save on taxes and maximize their hard-earned money.

In this post, we’ll explore how Tax Affinity Accountants rose to the occasion during the Self Assessment season, the satisfaction our clients enjoyed, and why now is the perfect time to consider switching to a tax team that actually understands your needs and can put you on the path to better tax outcomes.

The HMRC Self Assessment Deadline: A Busy Period for Accountants and Taxpayers Alike
The Self Assessment tax return deadline for HMRC is one of the most significant dates in every freelancer, contractor, sole trader, and small business owner’s calendar. As many people know, the 31st of January is the final day for submitting tax returns for the previous financial year, and the stress of meeting that deadline can be overwhelming. With penalties for late submissions and the risk of costly errors, it’s no surprise that many individuals and businesses turn to professional accountants for help.

This past December and January, our team at Tax Affinity Accountants worked tirelessly to ensure that our clients’ tax returns were submitted accurately and on time. Our expert accountants handled a wide range of complex scenarios, from straightforward self-assessments to more intricate tax situations involving multiple income streams, investments, property portfolios, and international tax issues. Regardless of the complexity, we ensured that all our clients received tailored advice and support to help them navigate the Self Assessment process with ease.

Our clients benefit from the comprehensive knowledge we have of current tax laws, and we worked diligently to ensure they understood their obligations while also taking advantage of every allowable deduction and relief available. The peace of mind that comes with having experienced professionals in your corner during such an important and stressful time cannot be overstated.

Client Delight: Low Taxes, Timely Returns, and Maximum Savings
What sets Tax Affinity Accountants apart from other tax firms is our commitment to delivering the best possible outcomes for our clients. Throughout December and January, we received glowing feedback from individuals and businesses who were delighted with the results we achieved for them.

By applying our deep expertise in tax planning and optimization, we were able to significantly reduce the tax liabilities of many clients. This is what truly excites us—helping individuals keep more of what they’ve earned. Whether it’s taking full advantage of allowable tax deductions, advising on tax-efficient investments, or utilizing strategies to minimize National Insurance contributions, we’re always looking for new and creative ways to reduce our clients’ tax burdens.

One example involved a small business owner who had previously been using a generic online tax software to file their returns. While the software was quick, it didn’t provide them with the tailored advice they needed to make the most of their tax position. After switching to Tax Affinity Accountants, we identified numerous opportunities for tax savings, including business expenses they had overlooked and potential claims for tax relief that they didn’t know about. As a result, the business owner’s tax bill was reduced by a significant amount—enough to reinvest in their business, expand operations, and increase profits.

We’ve also worked with several high-earning individuals who were struggling with their tax obligations. By applying a strategic approach to tax planning and ensuring they understood the implications of different income streams, we were able to optimize their tax position and save them thousands of pounds. When clients come to us seeking clarity and guidance, we don’t just meet their needs; we exceed them, delivering tax returns that maximize their savings while ensuring full compliance with HMRC.

At Tax Affinity Accountants, our clients are the center of everything we do. The positive feedback and appreciation we received during the January rush are a testament to the hard work we put in and our unwavering commitment to providing top-notch service. Our clients know they can count on us to not only meet the deadlines but also to deliver the best tax outcomes.

The Highest Number of Referrals in Our HistoryOur clients don’t just trust us—they recommend us to their friends, family, and colleagues. During the December and January rush, we received an unprecedented number of referrals, making it clear that our reputation for delivering outstanding results is growing faster than ever.

Referrals are the highest compliment we can receive, and we take great pride in knowing that our clients are not only satisfied with our services but are so confident in our ability to help others that they actively refer us to people they know. It’s also a sign that more and more individuals and businesses are realizing the value of working with an accountant who genuinely understands their financial goals and strives to help them save on taxes.

This year’s increase in referrals is a direct reflection of the exceptional results we consistently achieve for our clients. From freelancers and contractors to business owners and high-net-worth individuals, we’re proud to be the trusted partner that so many people turn to for expert tax advice. And as our client base continues to grow, we’re excited to help even more people take control of their tax positions and keep more of their hard-earned money.

Why Switch to Tax Affinity Accountants?
If you’re currently working with an accountant who isn’t delivering the results you expect or feel that your tax bills are higher than they should be, now is the perfect time to make the switch to Tax Affinity Accountants. Here’s why:

1. Unmatched Expertise
   At Tax Affinity Accountants, we specialize in providing strategic tax planning advice. We’ve spent years honing our knowledge and experience to ensure that our clients always receive the best possible outcomes. From minimizing tax liabilities to optimizing financial strategies, our team is second to none when it comes to maximizing your savings.
2. Timely and Accurate Returns
   Meeting the Self Assessment deadline is just the beginning. We guarantee that your tax returns will be submitted accurately and on time, eliminating the stress of penalties or late fees. We handle everything, so you can focus on what matters most—growing your business or enjoying your life.
3. Personalized Service
   No two clients are the same, and we don’t offer a one-size-fits-all solution. We take the time to understand your unique situation, goals, and challenges, tailoring our services to meet your specific needs. Whether you’re an entrepreneur, freelancer, or high-net-worth individual, we have the expertise to help you thrive.
4. Maximized Tax Savings
   Our clients consistently enjoy lower tax bills, thanks to our meticulous approach to tax planning. By identifying every potential tax-saving opportunity, we ensure that you’re not paying more than necessary. When you work with Tax Affinity Accountants, you can rest assured that you’re getting the best possible tax outcome.
5. Trusted by Clients Across London
   With more referrals than any other London-based tax accountant, our reputation speaks for itself. Our clients trust us because we deliver results. Don’t settle for an accountant who doesn’t understand your needs—make the switch to Tax Affinity Accountants and see the difference for yourself.

Ready to Save on Taxes and Keep More of Your Money?
If you’re ready to take control of your taxes and start working with a firm that truly understands how to maximize your savings, Tax Affinity Accountants is here to help. With our team of experts by your side, you’ll never have to worry about missed deadlines, unnecessary penalties, or overpaid taxes again.

Don’t let another year go by paying more than you need to. Reach out to us today for a consultation and discover how much we can help you save. Whether you’re switching from another accountant or looking for a new tax partner, Tax Affinity Accountants is here to provide the expert service, advice, and savings you deserve.
Contact us now, and let’s start working on a tax strategy that works for you. Together, we’ll make this year the best one yet!

Disclaimer: Tax Affinity Accountants is a leading accounting firm specializing in tax planning, advice, and compliance services. We work with individuals, freelancers, contractors, business owners, and high-net-worth individuals across the UK to help them maximize their tax savings and optimise their financial strategies. Please visit www.taxaffinity.com to learn more about our services and book a consultation.

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.

Chancellor Jeremy Hunt has disclosed the UK government's fiscal plans for the upcoming year. On November 22, 2023, Hunt presented the Autumn Statement in the House of Commons, likely the last pre-election mini-budget, with Prime Minister Rishi Sunak hinting at a potential election in October 2025 next year.

The Office for Budget Responsibility (OBR) has concurrently unveiled its latest economic outlook for the UK. In response to last week's news of a drop in inflation to 4.6% for the year up to October, Conservative MPs had advocated for broader tax cuts, taking advantage of what was termed as 'fiscal headroom.' Consequently, the chancellor has indeed announced tax reductions in today's statement.

The focus now turns to how these revelations might impact small businesses and the self-employed. Read on for key updates affecting this sector:

1. Living Wage Increase: The government has confirmed that the national living wage will increase in April 2024, reaching £11.44 per hour for workers aged 23 and above. This increase will also extend to include 21 and 22-year-olds for the first time.
2. National Insurance Reform for the Self-Employed: The chancellor has reformed and simplified taxes for the self-employed. Class 2 National Insurance has been abolished, resulting in average savings of £192 annually for self-employed individuals. Additionally, Class 4 National Insurance has been reduced to 8% for those earning profits between £12,570 and £50,270, with an anticipated annual savings boost of £350 from April 2024.
3. Business Rates Relief for Small Businesses: Despite impending increases in business rates with inflation, the small business multiplier has been frozen for an additional year. Moreover, the 75% business rates relief for eligible retail, hospitality, and leisure businesses (up to £110,000 per business) has been extended for the fiscal year 2024-25.
4. Late Payment Reforms: The government is taking measures to address late payment of invoices by companies, including the extension of payment terms and stricter requirements for companies bidding for large government contracts.
5. Simplified R&D Relief: Research and development (R&D) relief for small businesses will be streamlined, with the merging of the current R&D Expenditure Credit and SME schemes from April 2024.
6. Alcohol Duty Freeze: A temporary freeze on alcohol duty has been extended until August 1, 2024, with new rates set to be announced in the Spring Budget next year.
7. Business Tax Changes: The 'full capital expensing' business tax break, which reduces corporation tax liabilities for UK-based investments, has been made permanent. Businesses can now claim back 25p in corporation tax for every £1 invested in IT, machinery, and equipment.

Despite receiving a little bit of positive feedback, reservations linger about the effectiveness of these reforms in bolstering the strained small business sector. The increase in minimum wages rates for employees will no doubt increase costs for SME's already suffering from high utility bills - and will ultimately mean smart business owners decease the days and hours of staff. The majority of small businesses already had access to small business rates relief so nothing changed there. Finally the much talked about CGT and IHT amendments did not materialise, neither was there any  focus on reigning in large energy suppliers sapping the profits out of small and medium sized business to boost their annual profits. And the loss of class 2 NI is a blow for micro businesses and sole traders who needed it to top up their state pension contributions. Overall not impressed at all.

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 Smart Move: Why You Should Use a Tax Accountant for Your Self-Assessment

In the world of personal finance, few things are as certain as taxes. Each year, individuals across the globe prepare to navigate the labyrinth of tax regulations, deductions, and forms required for their self-assessment. While some opt for the DIY approach, a growing number are discovering the numerous benefits of enlisting the expertise of a tax accountant. In this blog post, we'll explore why using a tax accountant for your self-assessment is not just a smart choice but often a financially savvy one.

 1.   Expertise and Knowledge: Tax accountants are professionals who specialize in tax laws and regulations. They stay up-to-date with the latest changes in tax codes and have the experience to navigate complex financial situations. This expertise can help you minimize your tax liability legally.

 2.   Maximize Deductions and Credits: Tax accountants have a keen eye for identifying deductions and credits that you might overlook. Their attention to detail can result in significant savings, ensuring you're not paying more taxes than necessary.

 3.   Reduce Stress and Save Time: Preparing your own taxes can be time-consuming and stressful. It often involves sifting through a mountain of paperwork and deciphering intricate tax jargon. Hiring a tax accountant frees up your time and reduces the stress associated with tax season.

 4.   Avoid Costly Mistakes: Filing taxes incorrectly can lead to penalties and audits. Tax accountants are trained to minimize errors and ensure that your return is accurate, reducing the risk of costly mistakes that can haunt you later.

 5.   Year-Round Assistance: A tax accountant's support isn't limited to just tax season. They can offer financial advice throughout the year, helping you make informed decisions to optimize your tax situation and financial health.

 6.   Audit Protection: If you're audited by tax authorities, having a tax accountant on your side can be invaluable. They can guide you through the audit process and ensure that your rights are protected.

7.    Customized Strategies: Tax accountants can create personalized tax strategies that align with your financial goals. They consider your unique circumstances to help you make the most of available tax benefits.

 8.   Peace of Mind: Perhaps one of the most valuable aspects of hiring a tax accountant is the peace of mind it brings. Knowing that a professional is handling your taxes can alleviate anxiety and allow you to focus on other aspects of your life.

 9.   Cost Savings: Contrary to common belief, hiring a tax accountant can often result in cost savings. The deductions and credits they can uncover, combined with the reduction in errors, can more than offset their fees.

10.    Legal and Ethical Compliance: Tax accountants operate within the bounds of the law and adhere to ethical standards. This ensures that your taxes are filed ethically and legally, eliminating any worries about potential legal repercussions.

In conclusion, the decision to use a tax accountant like Tax Affinity for your self-assessment is an investment in your financial well-being. Their expertise, ability to maximize savings, and dedication to compliance can make the process smoother, more accurate, and less stressful. Ultimately, it's a smart move that can pay dividends in terms of both financial savings and peace of mind. So, this tax season, consider enlisting the help of a tax accountant like Tax Affinity and reap the rewards of a stress-free and financially optimized experience.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are the number rated and recommended Tax Accountants in London. 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 are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future.

We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change.

And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises.

Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long.

Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help.

-          Inheritance tax planning for landlords with estates between £1million - £250million
-          Capital gains tax planning
-          Transferring properties into a limited company - Incorporation
-          Offshore tax planning
-          HMRC Tax and VAT Investigations
-          Code of Practice 8 and 9 investigations
-          Alternate Dispute Resolution
-          Tax Tribunals
-          Forensic Accounting
-          Worldwide Disclosure Facility
-          Let Property Campaign
-          HMRC Check of Self Assessment / Tax
-          Contractual Disclosure Facility (CDF)
-          Code of Practice 8 / 9 / 11 / 14
-          Section 144 Enquiry
-          Section 12A TMA 1970 Notice Investigations
-          Code of Practice 11 (Local Compliance Offices)
-          Code of Practice 14 Investigation (Company Tax Return Investigations)

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 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:

• Bricklayers & masons
• Roofers, roof tilers and slaters
• Carpenters and joiners
• Construction and building trades n.e.c
• Plasterers

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:

• computer equipment and servers
• tractors, lorries, vans
• ladders, drills, cranes
• office chairs and desks
• electric vehicle charge points
• refrigeration units
• compressors.

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.

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.

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.

 
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.

The government's records for the past 12 months to March 2022 showed that consumer prices have risen as much as 13.4% in some sectors. This is much higher than the 9% reported a few weeks ago. It is therefore prudent to assume when bad news is highlighted by the government or a corporate entity it will most likely be understated.

Now that the ONS has issued more accurate figures its important medium to small sized businesses know the exact figures when it comes to costs to make sure they can budget correctly and choose to either absorb or pass on costs. So the business owner can safely steer the business through a recession or downturn.

A quick list of UK inflation figures is below and it is advised that business owners plan and manage these as soon as possible:

• Transport: 13.4% 
• Furniture, household equipment and maintenance: 10.3% 
• Clothing and footwear: 9.8% 
• Housing, water, electricity, gas and other fuels: 7.7% 
• Restaurants and hotels: 6.9% 
• Food and non-alcoholic beverages: 5.9% 
• Recreation and culture: 4.9% 
• Alcoholic beverages and tobacco: 4.8% 
• Education: 4.5% 
• Health: 2.5% 
• Miscellaneous goods and services: 1.9%
• Communication: 0.7% 

Tax Affinity Accountants are rated as the number one business advisors for medium to small businesses. So if your a business owner who is effected by the inflation rises and need expert guidance and support then get in touch today and we will be happy to help you plan a strategy to steer your busines to growth and success.

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.