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.

Economic conditons rise and fall but one thing is certain the most successful small to medium sized businesses always keep growing and increasing their profits. So how do they do that? Well here at Tax Affinity we are expert business advisors and we help and support thousands of business owners in the UK and overseas with exactly that.

Giving business owners tailored and specific advice to help keep their business growing and increasing in profits no matter what the economic conditions. In short giving everyone the same level of guidance and support that large corporate CEO's get but for a fraction of the price.

Why? Because we feel everyone should have access expert support especially small and medium sized businesses because they are the engines and driving force of every economy.

So here is a quick list to get you started and when you need more specific and tailored support contact us and we will be happy help.

1. Change the way you do things 
Simply you will need to generate more sales while decreasing expenses. Sounds easy but in reality it can be quite hard. To increase your sales you may have to change the way you do business and start offering new goods and services that complement your current goods and services.

To reduce expenses, keep an eye on expenses and start to identify which ones are excessive and a waste of income. Find out if some parts of your admin work that can be outsourced to reduce wages bills eg accountancy, payroll, vat etc. We at Tax Affinity often help clients by taking over the work load from business owners helping them cut costs and increase profit. Look closely at employees and identify the ones who are less productive and cut down their hours to part time from full time or simply let them go. Switch suppliers of utilities and explore new cheaper or free energy sources such as solar power or a rain collection tanks on the roof for the washrooms.

2. Motivate new customers to try your product/service
Another quick fix to increase profits is motivating new customers to try your products and services with specials deals, discounts, or short-term giveaways. Maybe think about a relationship-based sales model that gets customers coming back by offering monthly or annual subscriptions, or a grouped bundle of visits at a discounted price.

3. Stay in front of the customer make sure to be available
See what can sets you apart from your competition. Regularly check and promote your positive reputation. Use your website, emails and social media to connect with clients. Think about sharing advertising with a complementary business and find ways to get referral sales using affiliate marketing to get new customers. Plus get rid of old, unproductive business alliances that may be dragging you down. Check their reputation - if they are going down then your perceved to be the same too by association. Do more marketing and networking by setting up group meetings online, offer online downloads and access to shared info.

3. Maximising your cashflow 
Cashflow is king and making sure you always have enough is very important. Chase customers to pay on time and make sure that you add charges for late or delayed payments. If they do pay late then you will be paid more. Some people say offer a reduced monthly payment plan to lock in clients longer term, we don't agree because its a universal law that the cream always rises to the top and the best don't discount because they are the best. Get better instead of cheaper.

4. Dump useless employees
All businesses have employees who steal, or work purposely slow etc. Identify them and replace them with new more enthusiatic and efficient ones. They are just another asset in the business and your not responsible for them and their families. They should have bore that in mind before being lame at work. Think about automation which may allow your business to use software or robots for work and reduce monthly wages bills .

5. Make Everyone a Salesperson
From telephone to email to face-to-face meetings, every employee has the opportunity to spread your company's message and engage in potential sales-generating behavior. Everyone needs to pitch in to help by cutting costs, selling, networking on the web, marketing, and more.
If you can get your employees invested and motivated to sell your message by encouraging self-development through roundtables, conferences, lunch meetings, and webinars you'll be well on your way to creating an organization that is built around increasing profits.
Remember, it pays dividends to reward your employees that seek continuing education, or who make an extra effort to represent the company inside and outside of work.

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.

 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:

1. Numbers / digits errors. Whether it’s a National Insurance or Unique Tax Reference (UTR) number for income, incorrect numbers on any form could cost you. Be mindful when entering bank account information when opting for refund. The last thing you want is for someone else to receive your refunds. You should double check all numbers entered on your tax returns. 
   
2. Maths errors. Many taxpayers use pen an paper to work out numbers for submission. Even if you use a software package, it will still not catch errors for incorrect data entry. You should double check your numbers and then double check your calculations each time. 
   
3. Not declaring all the earned income. You must, must report all earned income on your tax return. When HMRC find out that you did not report everything, you could owe interest and penalties in addition to the tax owed on that income. UK banks these days can report income to HMRC without the account holders knowledge.
   
4. Not staying up to date with your tax code. Check the latest changes to your tax code before filing your own tax return. New laws affect many taxpayers and they are constantly changing. 
   
5. Filing an incorrect status. With many different filing status options available, the most accurate one for a taxpayer’s situation may not be easy to use. Each filing status could have an impact on the tax liability due to HMRC.
   
6. Mismatched names. This is a common mistake for newlyweds, typically when the wife takes a new last name and has not notified the NI department. Same issue may pop up for same sex marriages. The opposite applies also for divorcees who need to have a name change notified . If your name does not match the name and NI number and HMRC has on file, the tax return could be rejected or a tax refund could be delayed.  
   
7. Declaring multiple country taxes. Don’t forget that income earned in another country must be reported. If you reside in one state and work in another, a non-resident tax return must be filed in the country in which you work. Only the money earned in that country needs to be reported. However, if you fail to declare this, you could face interest and penalties, in addition to the taxes owed. 
   
8. Falling for tax schemes. One of the biggest concerns for the HMRC is tax fraud and identity theft. Taxpayers have lost thousands of pounds because criminals tricked them into believing they owed HMRC. HMRC will never send an unsolicited email or contact you through social media. HMRC does not ask for personal or financial information. If you believe you may be at risk for identity theft, you should contact the HMRC immediately along with your banks etc. 
   
9. Missing deductions or credits. While penalties and fees mentioned above could cost you, missing a deduction or tax break could cost you by lowering a refund or increasing taxes. 
   
10. Forgoting to sign and date the forms. It is an all-too-common mistake to forget to sign and date. While this may not cost you money, it will cause a delay in receiving any anticipated tax refund. Especially for those who owe HMRC and wait until the very last minute to file, forgetting to sign and date could cost you a late fee and penalty when HMRC sends it back for signature and the deadline has passed. 
    

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.

There are only a few working days are left until (UK) HMRC's self assessment (tax return) deadline. And with many people receiving furlough, SEISS type covid grants and Covid Support from Local Council's which all need to be declared it only add to the complication.

Many tax payers are finding their tax bills are higher this year than last year and are turning to expert tax accountants at Tax Affinity to help them. Doing it yourself or with someone with a basic knowledge of the ever changing tax rules is likely to end up costing you much more than the fees an expert tax accountant would ever cost. It just makes economic sense.

So if you have not had your 2020/21 (6.4.20 to 5.4.21) tax return completed then you urgently get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing a fine by HMRC for missing the 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.

Did you know last year more than 30,000 people in the UK did their tax return between Christmas Eve and Boxing Day?

As of writing this, there are only 20 working days left until HMRC's self assessment deadline of 31st Jan 2022. Each year millions of people leave their tax return (self assessment) to the last minute and then stress out if they declared the info correctly and if the tax due is correct.

Statistically the number one worry tends to be if their submission may trigger an HMRC investigation into their tax affairs... death and taxes being the fear we suppose.

Plus in the last tax year due to Covid 19 and lockdown's there were many other sources of income  e.g. council support grants, SEISS (self employed grants), furlough, bounce back loans, universal credit, tax credits etc. Making tax returns more complicated and resulting with higher taxes due for most tax payers.

If your worried we recommend you get in touch with one of our tax experts. Because we have seen a lot more investigations this year than previous years as HMRC starts it claw back to try to shore up the UK government income and focuses even more on tax avoidance and incorrect information.

So if you have not had your 2020/21 (6.4.20 to 5.4.21) tax return (self assessment) completed then you urgently need to get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing badly caclulated tax return paying more tax than you need to or worse a fine by HMRC for missing the deadline.

Contact us today by clicking this link or calling us on the number above. And share this page with your friends and family.

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 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.

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.