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Important employment law changes

Posted 27th May 2024 at 8:48 am

employment law

This tax year sees several changes to employment law that businesses should make sure they are aware of, to avoid costly mistakes and potential legal action from employees.   Holiday Pay On 1st April the holiday pay calculation method changed for irregular-hours and part-year workers. It is now calculated on 12.07% of the hours worked in the previous pay period, and rolled-up holiday pay is also permitted in certain circumstances.   Maternity and Paternity On 6th April Maternity leave regulations changed, including redundancy protection beginning as soon as an employee tells their employer they are pregnant. If the employee is... Read more

Be on trend with your tax return

Posted 20th May 2024 at 2:10 pm

tax return

HM Revenue & Customs (HMRC) have released figures showing that 295,250 Self Assessment tax returns were filed in the first week of the new tax year. Almost 70,000 were filed on the first day – April 6th. This seems to suggest an increasing trend for filing tax returns early. Last year, 246,210 returns were filed in the opening week. Tax returns do not need to be filed until 31 January 2025, however filing early does bring advantages. You get more time to budget and plan for paying your tax bill as well as peace of mind from knowing an essential... Read more

How can you save on capital gains tax?

Posted 13th May 2024 at 1:13 pm

Over the last two years, the tax-free allowance for capital gains tax has been cut by over three-quarters. For the tax year that recently began on 6 April 2024, the Annual Exempt Amount has been reduced to £3,000 (£1,500 for trustees). These reductions mean that more and more of us are likely to be affected by capital gains tax.   What is capital gains tax? You could think of capital gains tax as a tax you pay when you make money from selling something that has increased in value. This “something” could be anything from a house to shares or... Read more

How might the changes to company size thresholds affect your business?

Posted 7th May 2024 at 12:14 pm

From October 2024, company size thresholds are to increase by 50%. For each company, these new thresholds will begin to apply from the start of the next accounting period commencing on or after 1 October 2024. But what are the implications of these changes to your company? The Companies Act 2006 makes requirements for what is included in the accounts that are filed at Companies House. These requirements are split into four categories or regimes based on the size of the company. These four sizes are described as micro-entity, small, medium-sized, and large. A company generally falls into one of... Read more

Procurement: Making it work for smaller businesses

Posted 30th April 2024 at 5:30 pm

The government recently published a press release congratulating its procurement department on its 10th anniversary for saving taxpayers £3.8 billion last year. Larger corporations often have dedicated purchasing departments to handle procuring supplies, services and other business purchases. Specialising in this way allows for finding or negotiating the best deals for purchases and can save businesses considerable amounts of money. Savings are welcome in businesses of all sizes, but smaller businesses may lack the resources to have a specialised purchasing function in the business. How can businesses without a dedicated purchasing department still harness the benefits of procurement?   Embrace... Read more

Have you checked your tax code?

Posted 23rd April 2024 at 12:41 pm

tax code

Prior to the tax year starting each 6 April, HM Revenue and Customs (HMRC), will issue new tax codes to employees, usually where there is a change of tax code. These tax codes, a series of letter and numbers, allow employers to deduct the right amount of tax to be deducted from each employee when the payroll is run. That is, unless the tax code isn’t correct. Unfortunately this happens a lot more frequently than you might think, therefore, it pays to check that the tax code has been calculated correctly! The tax code notice usually sets out what has... Read more

Thinking of buying another business?

Posted 11th April 2024 at 4:47 pm

When in business, it’s not uncommon to be approached by another business with a view to you buying the business or entering a partnership deal. It might be a competitor that approaches you, or it could be a customer or supplier. Alternatively, you might identify a business that you would like to acquire as part of your own growth plans. What things should you consider before entering a deal to buy another business? In this blog we will look at some of the key considerations.   Financial assessment What is the financial health of the business you are looking to... Read more

Stress Awareness Month

Posted 9th April 2024 at 10:02 am

The Health and Safety Executive (HSE), via their Working Minds campaign, has declared April Stress Awareness Month.   Work-related stress is an important consideration for businesses since all employers have a legal duty to prevent work related stress to support good mental health in the workplace. Clearly it is beneficial for employees when businesses make efforts to manage and reduce work-related stress, but employers can benefit too. A reduction in work-related stress amongst the workforce means the employer is less likely to come across issues such as reduced productivity, repeated sickness absence, and poor staff retention. Clearly it is beneficial... Read more

Salary sacrifice: a win-win strategy

Posted 24th March 2024 at 4:43 pm

salary sacrifice

Business and employees are both constantly looking for ways to optimise their financial strategies. One often overlooked strategy in doing this is salary sacrifice. Salary sacrifice involves an agreement between an employee and their employer to reduce the employee’s salary in exchange for certain non-cash benefits. While it may seem counterintuitive at first glance, salary sacrifice can be a useful tool for saving taxes for both parties involved.   Benefits for the business For a business, implementing salary sacrifice schemes can lead to good tax savings. For instance, offering non-cash benefits such as pension contributions or cycle-to-work schemes in exchange... Read more

Furnished Holiday Lettings regime to be abolished

Posted 17th March 2024 at 4:38 pm

holiday let

If you run a holiday let, then you are probably well aware of the useful tax advantages that holiday lets have had for many years. Because furnished holiday lets can be treated as a trade rather than as a rental property, there are more generous deductions against income available. Also, there has been a significant advantage in property capital gains tax when selling a furnished holiday let. During the Spring Budget, the Chancellor Jeremy Hunt announced that the Furnished Holiday Lettings regime is to be abolished with effect from 6 April 2025. This means that your holiday let profits will... Read more