Guides

Insider June 2023

• Government launches cryptoassets consultation
• Tax take soars by almost 10%
• ICAEW calls MTD quarterly reporting 'disproportionate'
• Government extends VAT exemption for pharmacists

Employee Share Schemes

As an employer, there are many ways you can reward and incentivise your staff, from Christmas parties to team lunches. But one of the most attractive options is an employee share scheme.

Employee share schemes allow you to give some (or all) of your employees a stake in your business. Not only are share schemes a great way to show your appreciation for your team's hard work, but they also give staff a vested interest in your success.

Full Expensing: the new Corporation Tax incentive explained

In his Budget speech in March earlier this year, Chancellor Jeremy Hunt kicked off the Government's plan for growth with changes to business tax legislation, a key policy being 'full expensing'.

But what did the Chancellor mean by 'full expensing', and how does the policy work?

Is it a good time to buy-to-let?

Expanding your property portfolio can help increase your financial security — but is now a good time to buy-to-let?

As house prices start to fall and rents rise across the UK, 2023 may look like a good year to get your foot on the investment property ladder. However, making that decision is far from straightforward.

Insider September 2022

• Bank of England raises interest rates to 1.75%
• Energy bill support to be split over six payments
• Help to grow scheme extends to smallest businesses
• Capital Gains tax rules for divorced couples ease

Employing staff for the first time

An overview of the Government's seven steps.

Hiring an employee for the first time is an exciting moment for any business owner. Suddenly, you've got another pair of hands to help out with jobs that used to fall entirely on you - and with that extra support, new opportunities for growth are possible.

There's a vast amount of preparation and administration to do beforehand, however, and a lot of things you need to know depending on who and how you are hiring

Capital allowances and the super deduction

Make use of these allowances while they last.

When a business incurs costs, such as salary payments or stationary procurement, it can usually fully deduct them as expenses from its taxable profits, reducing the tax due. However, when it buys assets for operational purposes, things are not quite so straightforward.

There are HMRC incentives to help you pay less tax on the assets you buy: these are called capital allowances. But there are a myriad of rules for which this tax relief can be applied to get your head around.

Insider August 2022

• Lack of awareness of tax liability among crypto investors
• HMRC: businesses don't think MTD applies to them
• Self-emplyed struggling with tax obligations
• Bank of England focuses on returning inflation to 2% target

VAT accounting schemes

Choosing the right scheme for you.

Just about everyone has heard of VAT (value-added tax). We're used to paying it on many of the goods and services we purchase as we go about our everyday lives.

But when you have your own business, you'll learn a whole new world of VAT exists as you work out how to apply it to your own trade. That's because there are numerous VAT accounting schemes that HMRC offers, and which one is right for you will depend on the nature of your business.

Business exit strategies

How to leave your business in good hands.

A business exit strategy is a plan for what will happen when you want to leave your business.

A lot of people think of an exit strategy as a plan to guard against disaster or something that has to be carried out right away after its conception.

But this usually isn't the case.

Insider July 2022

• Government overhauls audit regime
• National Insurance threshold increases
• Recovery loan scheme comes to an end
• Taxpayers not ready for Making Tax Digital

How HMRC conducts tax investigations

How to reduce penalties for accounting errors.

HMRC recently announced new powers to investigate companies they suspect of evading taxes, so as a business owner, you might be worrying about what happens if your company comes under scrutiny.

Even if you've played entirely by the rules, the stress of an investigation can be a lot to deal with, especially after the last few difficult years. However, you needn't worry – understanding the process will help you and your company deal with the situation and we'll be on hand to support you throughout.

How do changes to NICs affect you?

Spring Statement changes come into effect.

As you may have heard, there are changes happening to National Insurance contributions (NICs).

From 6 July, the new thresholds will come into effect. But what does that mean for you?

As a self-employed worker, you will already pay your National Insurance differently to that of an employee. But now your threshold is changing, you'll need to know how much by and when.

Insider June 2022

• HMRC raises interest rate on late tax payments
• Work from home tax relief may not be available in 2022/23
• Bank of England raises interest rate to 1%
• SMES unprepared for MTD rollout

Sourcing business finance

Exploring your options as interest rises.

Most businesses rely on funding in one form or another to keep their operations running, invest in new equipment or projects, and grow.

The past few years in particular have made it necessary for many businesses to source extra funds, either for dealing with the impacts of the pandemic or the rising cost of supplies.

The tax benefit for innovative companies

The lowdown on this relief for innovation.

Research and development (R&D) tax credits were once a little-known tax incentive for companies which invested in innovation. But after rule changes in recent years, and a push by many tax advisers, they are now much more widely understood and used.

They may no longer be much of a secret, but they are still a remarkably effective way for innovative companies to get something extra back from the tax system. Here's a look at how they work, what the benefits are and what the future might hold for R&D tax credits.

Insider May 2022

• IR35 reform landing period ends
• New law to resolve Covid rent debt
• National Insurance and dividend 1.25% uplift underway
• MTD for VAT rolls out to all VAT-registered businesses

The importance of estate planning

How to prepare and protect your estate.

We are all somewhat used to living with economic doom and gloom at present, from sky-high inflation rates to tax rises being splashed across the news headlines. But recent analysis from the Office of Budget Responsibility shows that you may also get stung harder after you are gone.

They estimate that HMRC inheritance tax takings are set to rise to £37 billion cumulatively over the next five years. That's compared to £26.7bn for the previous five years.

A new approach to employee benefits

Balancing tax perks with desirability.

Like most business owners, you have probably experienced the squeeze in recruitment and retention that has been prevalent for the last 12 months or so. It's been so significant, it has even been dubbed "The Great Resignation".

According to research from Ipsos, 26% of British workers have thought about quitting their job in the last three months, while 29% have looked for another one.

Spring Statement 2022

Spring loaded: crisis solutions or half-measures?

Amid rising pressure to bring in significant relief measures to combat the current international emergency, Chancellor Rishi Sunak implied ahead of time that he could only do so much.

Speaking at the weekend, he acknowledged concerns about price hikes and inflation, vowing to stand by people in the same way he's "done over the past couple of years". But, in the same breath, the Chancellor warned that the Government couldn't "completely protect people against some of the difficult times ahead".

Insider February 2022

• HMRC waives penalties again for late self-assessment
• Omicron-hit employers can reclaim statutory sick pay
• Treasury's pensions tax relief bill soars past £42bn
• Deadline looms for new hospitality and leisure grants

How to value your business in 2022

Is it only worth what the buyer wants to pay?

The last year has been challenging for all of us, let alone business owners who've had to claim emergency support and battled hard to stay afloat.

Having survived those choppy waters, maybe it's time to get your business valued as thoughts drift towards an exit strategy or securing external investment to facilitate growth.

Utilising your pension to cut Inheritance Tax

Pensions usually fall outside of your estate.

Inheritance tax was thought to be ripe for reform in last year's Autumn Budget but, as it happened, it was left untouched for another tax year.

What that means is the £325,000 nil-rate band has been in place since 2009, while the 40% standard rate of tax that can apply on any amount above that figure goes back even further than that.

Autumn Budget 2021

Chancellor Rishi Sunak resisted temptation to raise taxes to start paying for the emergency support schemes that kept so many businesses afloat during the pandemic in 2020/21.

Instead, Sunak continues to bask in the warm glow reserved for generous chancellors following his latest Autumn Budget speech, thanks largely to cutting the Universal Credit taper rate by 8%, bringing it down from 63% to 55%, from 1 December 2021 at the latest.

Corrigan Insider November 2021

• Salary sacrifice could 'dampen increased NICs costs'
• Hospitality and tourism VAT rate increases to 12.5%
• Business Rates burden eases for retailers and hospitality firms
• Extension for temporary £1m annual investment allowance

Business tasks to outsource

How we can make your lives easier.

As a business owner, you will find that few things in your line of work are as precious as your time - time that would be better spent doing something other than accounting.

Many people come to us asking for help with tasks that usually result in time slipping through their fingers, because of their often onerous nature to the layman.

Pension options at the age of 55

Understanding your early-access pension options.

Despite remaining complex, pensions offer you far more flexibility from the age of 55 (rising to 57 from 6 April 2028) than was once possible.

If you are approaching 55, you might be feeling a twinge of trepidation or excitement that you could soon become "a pensioner" as this is the age at which you are allowed to access some pension savings.

Corrigan Insider October 2021

• Curtain comes down on Stamp Duty Land Tax holiday
• Government launches new trust registration service
• The rise of electric vehicles could create £30bn tax hole
• National Insurance and Dividends tax rates to rise 1.25% in 2022/23

2020-2021 Income Tax returns and the SEISS

Three grants worth up to £21,570 are taxable.

A chunk of time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic.

The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second grant of up to a total of £6,570 and a third grant, worth up to £7,500 in total.

Residence and domicile after Brexit

How your status affects the amount of tax you pay.

For most UK citizens, the question of what income and gains should be included on their tax return is easily answered because they are both UK domiciled and UK tax resident.

Anyone domiciled and resident in the UK will need to report their worldwide income and capital gains on their return. However, what happens if you are either non-UK domiciled (non-dom) but UK resident, or UK domiciled but non-UK resident?

Insider September 2021

• Deadline approaches for fifth and final self-employed grant
• National Insurance contribution rates 'poised to increase'
• 1 in 5 UK employers consider making redundancies
• Capital Gains Tax receipts climb 3% to record-high

Accounting for Charities and Non-profits

How the third sector is assessed for tax.

Anyone who's involved in operating a charity knows how it differs from running a business, both in terms of motives and objectives.

HMRC treats non-profit organisations and charities very differently to businesses, offering some unique tax breaks in the process.

Basis period rules in line for reform

What might this mean for your business?

Unincorporated businesses could be about to see significant changes to the ways in which they are taxed, following the launch of a Government consultation.

Insider August 2021

• Lower stamp duty land tax threshold in place until October
• Employer costs increase as furlough scheme winds down
• Treasury seeks feedback on business rates revaluations
• Pensions tax traps catch out thousands more savers

Taking charge of planning your estate

Increasing house prices raise inheritance tax risk.

Soaring house prices coupled with certain thresholds being frozen in the most recent Budget have the potential to drag more estates into the inheritance tax net over the coming years.

Back in March 2021, Chancellor Rishi Sunak confirmed the main inheritance tax thresholds will remain frozen at their 2021/22 levels "up to and including 2025/26".

Starting a new business after Covid-19

How new businesses can grow and flourish.

Not much can stop determined entrepreneurs from building a new business from the ground up, even during such challenging times as a COVID-19 or its ensuing fallout.

The pandemic has proven a huge challenge for businesses, with 396,155 UK firms closing in 2020 according to the Office for National Statistics, as business owners struggled to cope with restrictions and lockdowns.

Insider July 2021

• Sweeping VAT reforms in the EU will affect the UK's online retailers
• Families hit with big bills after believing gifts would not be taxed
• OTS considers bringing the end of the tax year forward
• UK tax incentive 'fails to deliver extra r&d spending'

The pros and cons of a company electric car

Should employers shift towards greener vehicles?

Despite the potentially high personal tax charge, many employees still enjoy and prefer the convenience of being offered the use of a company car by their employer.

Those employers familiar with the benefit-in-kind tax rules will be aware the tax impact on the employee is much lower for those that choose lower emission cars.

Tax planning for residential landlords

Planning to take advantage of low interest rates?

After a challenging year for the UK's residential landlords, you might have read about improvements to the buy-to-let mortgage market in recent weeks.

Insider June 2021

• Deadline approaches for SME Brexit support grant
• Employers told to issue childcare voucher reminder
• Directors back mandatory climate credential disclosure plan
• HMRC seeks to remove VAT repayment supplement

Costs you can reclaim on the business

Allowable expenses and allowances in 2021/22.

If you're self-employed, your business will rack up various running costs throughout 2021/22. Some of those you’re able to deduct as allowable expenses.

By deducting these allowable expenses as part of calculating your business’s taxable profits, it's possible for us to reduce your income tax bill in the process.

The basics of VAT for UK businesses

An introduction to the main business tax.

VAT is a business tax on the supply of goods and services. It is charged at varying rates depending on what is being supplied, who it is being supplied to and where it is being supplied to.

Insider April 2020

• Three-month extension for business rates holiday in England
• New recovery loan scheme replaces previous Covid-19 loans
• VAT-registration and deregistration thresholds frozen until 2024/25
• Treasury issues guidance on the final two self-employed grants

Personal Tax planning for 2020-2021

What's changing for the new tax year?

If there's one thing to take away from Spring Budget 2021, it's taking charge of your personal finances is going to be increasingly important over the next five years.

The future of UK Corporation Tax

What's ahead for companies, from rate rises to MTD.

For the past 40 years or so, corporate tax rates have decreased steadily around the world. In 1980, the global average stood at around 40%, but by the end of 2020 it was closer to 24% as various countries aimed to encourage business investment.

Insider March 2021

• Opt-in to VAT deferral new payment scheme by 31 march 2021
• Personal allowance and higher-rate threshold to increase 0.5%
• Changes to prompt-payment code aim to end late payments
• Record number miss self-assessment filing deadline due to Covid-19

Spring Budget 2021

The Chancellor has attempted to strike a balance between continuing to prop up the businesses worst affected by COVID-19, while setting out a roadmap to wean the UK economy off this emergency support.

In his second Budget and 14th fiscal announcement since succeeding Sajid Javid in February 2020, Sunak resisted the urge to start raising the main taxes in a bid to rebuild the UK economy and tattered public finances.

National Insurance planning

For employers, employees and the self-employed. Our state pension, benefits, health service and more are all funded by National Insurance contributions (NICs).

These are paid in different ways and at different rates by employers, employees and the self-employed, and they can also be paid voluntarily.

Off-payroll working in the private sector

Are you prepared for changes to the IR35 rules?

Exactly a year later than planned, changes to the off-payroll rules - known as IR35 - will take effect in the private sector next month. The emergence of COVID-19 put paid to the changes affecting large and medium-sized private-sector organisations this time last year, but now it's for real.

Insider February 2021

• Hardest-hit businesses offered new Government grants of up to £9,000
• Pre-christmas furlough extension stems the tide of redundancies
• Record number of small businesses 'set to close for good in 2021'
• Covid-19 sees retail sales slump to a 25-year low in 2020

Year-End Tax Guide 2020/21

Useful guide that covers: Personal Allowances, Inheritance Tax, Tax Credits, Entrepreneurs' Relief, VAT, Penalties, Corporation Tax, Business Deductions, Captial Gains Tax, ISAs, Pension Contributions and Non-UK Domicile Taxation.

Finally the guide touches on upcoming changes.

How to plan for your retirement

Get on track for a comfortable retirement.

If you have a defined contribution pension scheme - whether private or through your employer - your retirement savings have probably been hit quite hard by the COVID-19 pandemic over the past 12 months.

Complying with your tax obligations

Meeting your obligations amid COVID-19 disruption.

It's not often that HMRC makes exceptions to its tax deadlines or late-filing penalties, but the past year has, as in so many ways, been different.

Insider January 2021

• Annual investment allowance remains at £1m until 2022
• HMRC issues last reminder for 2019/20 personal tax returns
• One-year freeze for business rates multiplier in England
• National living wage to increase alongside age threshold fall

Strategies for exports after Brexit

Reaching international markets in 2021 and beyond.

The UK has left the EU, and for British exporters, that presents both opportunity and uncertainty.

Construction sector: reverse charge VAT

The effects on supply chains from 1 March 2021.

Those working in the UK's construction industry will have to handle and pay VAT differently from 1 March 2021, unless there's another last-minute Government U-turn.