Blog

What tax do you pay if you sell on eBay?

Posted 9th January 2024 at 10:27 am

ebay

In these economically challenging times, and in an era where we are all more conscious of our impact on the environment, many of us are choosing to sell our unwanted second-hand items on sites like eBay, with some people even making this their main source of income. You might think of this as ‘free money’ but in fact, this is unfortunately not necessarily the case. The tax implications of selling on eBay are more obvious if you are making or buying goods specifically to sell for a profit – HMRC will view this as business income that needs declaring. However,... Read more

Reporting PAYE information in real time – Early Christmas Payments

Posted 18th December 2023 at 11:17 am

Some employers pay their employees earlier than usual over the Christmas period. This can be for a number of reasons, for example, during the Christmas period the business may close, meaning workers need to be paid earlier than normal. If you do pay early over the Christmas period, please report your normal or contractual payday as the payment date on your Full Payment Submission (FPS) and ensure that the FPS is submitted on or before this date. For example, if you pay on Friday 22 December 2023 but the normal or contractual payment date is Friday 29 December 2023, you... Read more

Important changes to UK company law

Posted 4th December 2023 at 12:32 pm

company law

The Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023 and will introduce a number of changes over the next few years. The act gives Companies House the power to play a more significant role in tackling economic crime and supporting economic growth. Over time, the measures will lead to improved transparency and more accurate and trusted information on Companies House registers. The legislation applies to companies and other entities registered in England and Wales, Scotland, and Northern Ireland and applies to anyone who files on behalf of clients, such as accountants and company formation agents.... Read more

The Autumn Statement

Posted 28th November 2023 at 5:29 pm

autumn statement

Chancellor Jeremy Hunt last week unveiled the government’s tax and spending plans in the Autumn Statement. He started his speech by saying that there were 110 measures to “Help grow the British economy”.   Growth is better than expected this year according to the Office for Budget Responsibility (OBR), although they state the impact of the Autumn Statement on output growth will be “modest”. They state that the economy recovered more fully from the pandemic and weathered the energy shock better than expected, but they expect inflation to remain higher for longer, taking until the second quarter of 2025 to... Read more

Growing your business? Just keep going!

Posted 20th November 2023 at 4:24 pm

growth

The Bank of England (BOE) recently held interest rates at 5.25% and warned that the restrictive policy will remain for an extended period, despite the bleak economic outlook. BOE forecasts suggest the UK will not get to the 2% inflation target until the end of 2025.  They expect inflation to fall to around 5% by the end of this year. Their forecasts also predict that output will remain stagnant in 2024. The Chancellor, Jeremy Hunt, remains more optimistic and was quoted as saying that the UK economy has remained far more resilient than many expected. Clearly things are changing rapidly... Read more

Inheritance Tax Planning Tips

Posted 14th November 2023 at 3:57 pm

inheritance tax

With inheritance tax receipts to HMRC set to reach new levels this financial year, now more than ever families are needing to plan for their future. Inheritance tax could take a large proportion of your wealth – 40% of everything above £325,000 – and stop your family members enjoying the results of your hard work. Avoiding or reducing inheritance tax is possible if you have expert advice and plan accordingly. Below are three essentials to mitigate inheritance tax.   Talk to your family The first step towards a successful inheritance plan for all families is communication. Talk to your spouse,... Read more

New guidance from HMRC on home-charging of company electric and hybrid vehicles

Posted 7th November 2023 at 12:41 pm

electric car charging

HMRC has recently provided amended guidance on the tax treatment of the costs of charging company cars and vans at home. Where reimbursed by the employer, the costs of charging electric and hybrid company vehicles at home are now treated as a tax-free benefit, in contrast to their previous treatment as taxable earnings. HMRC has updated the EIM23900 manual to reflect this revised guidance. Section 239 ITEPA 2003 details an exemption on payments and benefits provided in connection with company cars and vans. This legislative provision therefore exempts aspects such as vehicle repairs, insurance, and road tax. HMRC previously maintained that... Read more

Reducing staff sickness absence

Posted 20th October 2023 at 1:39 pm

sickness absence

A new survey from Acas has found that one in four employers have seen an increase in staff being off sick compared to a year ago. Acas commissioned YouGov to ask employers at the end of August if they had seen any changes to the number of employees being off sick compared to 12 months ago. The poll found that: 26% of employers had seen an increase in sickness absence; Almost 1 in ten (9%) had seen a decrease; Over half (59%) said that the number of staff being off sick had roughly stayed the same; and 6% didn’t know... Read more

The biggest tax-raising parliament since records began

Posted 16th October 2023 at 9:19 am

The Institute for Fiscal Studies (IFS) has stated that this has been the biggest tax-raising parliament since records began, pushing UK tax revenues to historically high levels. They comment “At the time of the last general election, UK tax revenues amounted to around 33% of national income. By the time of the next election in 2024, on current forecasts, taxes will amount to around 37% of national income – a level not sustained in the post-war period.” Compared with a world in which taxes had stayed at 33% of national income, the UK government will be raising upwards of £100... Read more

Millions heading for Retirement without a financial plan

Posted 10th October 2023 at 3:47 pm

retirement

Millions of over-55s in the UK are at risk of encountering financial difficulties in their retirement, new research has revealed. One of the UK’s leading at-retirement advisers commissioned an independent survey of 2,000 UK adults, finding that less than half (46%) of respondents currently have a financial plan in place for their retirement – with this figure only rising to 47% for those aged 55 and above. When it comes to retirement savings, just 51% of UK adults know how much is in their pensions – again, there is only a slight increase (to 56%) among those aged 55 and... Read more