SME’s Still Losing Millions in Unclaimed R&D Tax Credits

Posted 17th August 2018 at 3:17 pm

Many UK SME’s are not claiming for new product Research and Development costs, meaning they could be missing out on millions of pounds of tax credits. There are around three and a half million SME’s actively trading in the UK and around 57% of these are eligible for R&D tax credits, however only 1% of SME’s have ever claimed the relief. Since its introduction there has been a steady rise in R&D tax relief claims, however many SME’s are still unaware that they may be able to claim. This has resulted in hundreds of millions of pounds of R&D tax... Read more

New Guidance for Making Tax Digital for VAT

Posted 10th August 2018 at 12:24 pm

HMRC have now issued their detailed guidance on Making Tax Digital (MTD) for VAT regarding digital record keeping and return requirements. It has been clarified that business records can still be kept with the use of spreadsheets if there is bridging software that links to the Government gateway. There will also be a one year “grace” period during the first year of MTD when businesses will not be required to have digital links between software programs, referred to in the VAT Notice as a “soft landing”. The VAT notice includes several helpful examples illustrating different accounting systems and the digital... Read more

Would the Tax Man Take the Shirt off Your Back?

Posted 3rd August 2018 at 1:45 pm

Employee Clothing Tax Deductions     There are a lot of jobs out there for which it is necessary that an employee wears specialist clothing, from builders to waiters to carers. In some cases, these may be provided by the employer who may not need to pay any tax or national insurance on the items. In some cases however the responsibility to purchase and maintain work clothing falls on the employee. We’re taking a look at what clothing employees are able to claim tax relief on and why recent requests are blurring the rules. The general tax rule set out... Read more

Should Robots Pay Tax?

Posted 26th July 2018 at 3:09 pm

  AI and assisting technologies are no new thing in the world of business. From retail to manufacturing, this technology is becoming a part of our everyday lives, and many workers are concerned that one day they will be replaced by a machine that can do their job twice as fast and for half the cost. It’s clear to see where these concerns come from when it has been predicted that by 2030 one in five jobs will be automated. However, if there are to be less humans in the workplace, the government will inevitably see a drop in contributions... Read more

What is the Future of VAT?

Posted 20th July 2018 at 2:22 pm

The UK at the moment is seeing many changes affecting businesses, from the confusion of Brexit to the implementation of Making Tax Digital. Now there are more changes on the way for businesses. HM Treasury has opened a consultation on lowering the VAT threshold after evidence shows that the current threshold deters some small businesses just under the threshold from expanding.   What effect does the current VAT threshold have on businesses? Currently 3.5 million businesses have a turnover below the current VAT threshold with only 1 million of those voluntarily registered while not liable for VAT. It is believed... Read more

How Can Employers Use the Tax System to Encourage a Healthy & Active Workforce?

Posted 13th July 2018 at 4:17 pm

Many employers offer a variety of incentives and programs which aid employees in maintaining a lifestyle alongside their work life. However, a recent report has shown that up to three quarters of workers days are spent at their desk which can lead to issues with back injuries, eye strain and stress. All of these are contributing to a workforce which has to take time off from work resulting in 25.7 million working days lost during 2016/17 costing up to £32 billion for UK business. Promoting a healthy work life with more physically active workers can bring a great number of... Read more

Do Company Directors Need to File a Tax Return?

Posted 6th July 2018 at 3:56 pm

director tax return

  Today we discuss whether directors are required to file an annual self-assessment tax return. If a return has been issued then yes it is compulsory to file a tax return however if no return is issued then what is expected from directors? We will be taking a look at the expectations from HMRC as well as what the law has to say on the topic.   What HMRC Says According to the website you must send in a tax return if “you were a company director – unless it was for a non-profit organisation (such as charity) and... Read more

Landmark Case Highlights Employment Rights Issues

Posted 22nd June 2018 at 4:34 pm

Earlier this month a landmark legal case was won by Gary Smith, a plumber who worked for Pimlico Plumbers in London. Mr Smith was contracted as self-employed but argues that he should have been entitled to sick pay and was unfairly dismissed. In this blog we take a look at the case and what employers can do to ensure employment rights are correctly respected.   The Issue Gary Smith was employed by London based Pimlico Plumbers full-time for six years. After suffering a heart attack Mr Smith had asked his employers for reduced hours. However due to his contract he... Read more

Is HMRC’s Crackdown on Tax Avoidance Putting the Pressure on SME’s?

Posted 15th June 2018 at 11:59 am

Pressure on sme's

  There is no question that more aggressive measures have been taken to combat tax evasion, with over 100 new procedures being introduced by HMRC since 2010. Below, we take a look at some of the ways in which HMRC is combating tax avoiders or those unable to pay and what you can do if you find yourself on the receiving end of an investigation.   What is HMRC doing to target avoiders?   Technology Advancements in technology have come a long way and this, coupled with additional power legislated by the government, means HMRC are in a stronger position... Read more

Tax Efficient Profit Extraction

Posted 1st June 2018 at 4:32 pm

Profit Extraction

  If you are a director of a family company then you will want to make sure that you are extracting profits from your business in a way that is the most tax efficient. Whether this is by salary, dividends or pension contributions (for future use). The reduction in the dividend allowance for 2018/19 and changes to the rates and allowances will impact on directors of personal and family companies looking to extract profits in a tax-efficient manner. As always, the optimal strategy will depend on circumstances. It is generally beneficial to take a small salary, particularly where the recipient... Read more