R&D tax credits: what is an HMRC enquiry? What is an HMRC enquiry? The government’s R&D tax credit incentives were introduced to help grow the UK economy and reward innovative businesses. HMRC manage and administer the government R&D tax credit incentives. Sometimes this can include an enquiry. When you submit an R&D tax credit claim […]
Insight to R&D eligible cost What costs qualify for R&D tax credits? You can claim Research and Development (R&D) tax credits on revenue expenditure, i.e., day-to-day operational costs. But usually, capital expenditure (money spent on fixed assets such as land and buildings) is not eligible for R&D Expenditure within the claim. Eligible R&D Expenditure Revenue […]
What do you know about Corporate Intangibles Tax Treatment Corporate intangibles tax treatment The corporate tax treatment essentially follows the treatment of intangibles in the accounts. There are, however, restrictions on the deductibility of debts about goodwill and other customer-related intangible assets depending on the date of acquisition or creation. The corporate intangibles regime has gone through several iterations since its introduction in […]
New VAT Penalties regime Penalties for late payment and interest harmonisation For VAT taxpayers from periods starting on or after 1 January 2023. For taxpayers in Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024 for taxpayers with business or property income over £10,000 per year (that is, taxpayers must submit […]
Can I get Tax Relief on Pension Payments? What is a pension, and how does it work? A pension is a financial product that lets you save up to fund your retirement. Technically, it’s a kind of tax wrapper with specific rules around what you can save and when you can access your cash. There […]
Does HMRC have too` much power or not enough? The taxes collected by HMRC – £584.5bn in 2020-21 – run the UK and, as such, the right amounts must be managed. To this end, HMRC has myriad powers to review returns and check taxes have been correctly calculated and paid. For civil cases, these powers […]
What can be claimed as an expense for a Limited company? What is a Limited Company? A Limited Liability Company is an “incorporated” business structure that means that to bring the company into existence, it must first be formally registered with Companies House. Once registered, the limited company is an entirely distinct “legal entity”, separate […]
VAT implications for businesses supplying goods or services to EU/Non-EU Place of supply For VAT on services, the general ‘place of supply’ principle still applies. This rule determines whether the service is within the scope of UK VAT. For B2B services, the place of supply is where the customer is resident. This means that where […]
Income Tax MTD : What it means for sole traders in 2024 Making Tax Digital (MTD) is the UK governments flagship programme to make tax accounting easier for businesses and individuals such as sole traders. As you might guess from the name, it does this by legislating the digitalisation of tax data and submission. Making […]
UK R&D geared up for a tech-driven future Significant changes are coming to R&D tax incentives from April 2023. Find out what these changes could mean for your future R&D claims. HMRC have provided more details on the forthcoming changes to the research and development (R&D) tax incentive with effect from April 2023. To summarise, […]
Is the VAT Flat Rate Scheme right for your business? FRS (Flat rate scheme) An optional VAT scheme is available to all small businesses with a VAT exclusive annual taxable turnover of up to £150,000. This requirement applies at the point of entry into the scheme. Companies should check their turnover on each anniversary of joining the scheme, and if […]
Get your website taxes right Tax and Accounting Treatment for Website Development Costs Before you can start determining the tax treatment for your website development cost, you need to assess the use of the website. You need to decide if your website is more of a brochure that publicises your brand or if the […]
