The government have this week announced changes in a bid to simplify tax reporting that will come into force by 2023. The changes will see small businesses taxed on profits arising in a tax year, rather than profits of accounts ending in the tax year. Under the current system, tax returns filed by the self-employed, […]
140,000 “extra” transactions have been generated in the UK from the stamp duty holiday, but who really benefits? According to a report from the London School of Economics (LSE), homeowners saved on average £15,000 of Stamp Duty Land Tax (SDLT) from the scheme, which may be seen as a success in stimulating the housing market […]
With recent reviews into Capital Gains Tax and Inheritance Tax now complete, could this be the time for family businesses to review their approach to succession planning? If managed correctly, individuals and families who have created a large amount of wealth for themselves can see a substantially positive impact for their family dynamics and business […]
The Office of Tax Simplification (OTS) has explored how tax reporting could be made easier for taxpayers if third parties were required to provide information to HMRC. The annual stress for taxpayers who file a self-assessment tax return often stems from searching for the paperwork to support the entries on the return, including: • interest […]
If your business is in the enviable position of having strong cash reserves in the bank, it is important to consider the commercial and tax implications of this extra cash. The implications Large cash reserves on your balance sheet could have an impact on your company ‘trading’ status for valuable tax reliefs. For instance, you […]
Due to frenzied market activity in the last 12 months, driven partly by the stamp duty holiday, nearly two million UK houses are now in the higher stamp duty bracket in a victory for HMRC. According to figures by property website Zoopla, 940,000 additional properties will now attract some level of stamp duty at five […]
Employee Ownership Trusts (EOTs) offers an attractive form of succession strategy that could suit your business needs more than a management buyout or traditional trade sale. What is an EOT? Introduced in 2014, the transaction centres on the departing shareholders selling their shares in a company to a trust which then holds the shares on […]
HMRC is looking into nearly 13,000 potential cases of abuse of the government’s various Covid support schemes. By the end of March, it has been reported the treasury was investigating 12,828 possibly fraudulent claims on the furlough scheme, Eat Out to Help Out or self-employed support. The data has highlighted that the majority of the […]
There are several potential reasons to separate commercial premises’ ownership from the business; including safeguarding assets, future succession ambitions, or even to enhance cashflow. Whatever the reason, tax will always be an important consideration. ‘Ring-fencing’ assets If there is simply a desire to protect key assets (such as property) from adverse trading risk, it may […]
The furlough scheme has been an invaluable crutch for businesses across the UK, but a substantial number of hurried claims may lead to an eruption of COP9 notifications. What is COP9? Code of Practice 9 (COP9) is a form of tax investigation that HMRC will only issue where it believes there has been serious tax […]
