HMRC’s latest avoidance spotlight draws attention to a dividend diversion scheme used to fund the cost of education fees. The spotlight explains that the arrangements are aimed at individuals who are the directors and main shareholders of a company and that they work broadly as follows: Company issues a new class of shares which usually entitles the […]
In the tax year 2021-22, 4,480 companies raised a total of £2,305m of funds under the enterprise investment scheme (EIS). This is the highest number of companies and total amount raised since the scheme was introduced. Funding has increased by 39% from 2020-21, when 3,765 companies raised £1,662m. Latest figures from HMRC show that money invested in […]
HMRC is increasing interest rates for late payments for most taxes after the Bank of England’s decision to increase the base rate to 4.5%. From 22 May 2023, the rate for late paid corporation tax quarterly instalment payments is 5.5%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax […]
1 June 2023 Payment of corporation tax liabilities for accounting periods ended 31 August 2022 for small and medium-sized companies where payment is not required by instalments. Check for revised HMRC advisory fuel rates. 7 June 2023 Electronic filing and payment of VAT liability for quarter ended 30 April 2023. 14 June 2023 Quarterly corporation […]
HMRC began issuing P9 notice of coding email notifications to employers on 6 February 2023 and expects to complete the process by 5 March 2023. The notice advises that employees’ coding for the tax year starting 6 April 2023 can be viewed within the PAYE online account. Paper notices should arrive with employers on or […]
The government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to make contributions for the years from April 2006 to April 2017. The original deadline was 5 April 2023. All voluntary contributions will be accepted at the 2022-23 rates until 31 July. As part of transitional arrangements […]
The second-hand motor vehicle payment scheme is being introduced on 1 May 2023 and will allow VAT-registered businesses to claim a VAT-related payment if they buy a second-hand vehicle in Great Britain – England, Scotland and Wales – and move it to Northern Ireland for resale. In the latest Agent Update, HMRC reminds businesses that from 1 May, […]
The chancellor confirmed that from 1 April 2023, the main rate of corporation tax will be 25% with a small profits rate of 19%. On capital allowances, the government will introduce full expensing for the next three years. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 […]
The digital services tax was designed as an interim tax before the reforms to international tax rules to ensure that multinational enterprises pay a fair share of tax wherever they operate, said the House of Commons’ Public Accounts Committee (PAC). However, given the likely delay to the first stage of these reforms – pillar one […]
The government wishes to extend the self-employed cash basis so that as many businesses as possible are able to use it. It has published a consultation document which proposes the following: increase the turnover thresholds for businesses to use the cash basis; set the cash basis as the default, with an opt-out for accruals; increase the £500 […]
HMRC is increasing interest rates for late payments for most taxes after the Bank of England’s decision to increase the base rate to 4.25%. From 3 April 2023, the rate for late paid corporation tax quarterly instalment payments is 5.25%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax […]
From the 17th of April to the 2nd of June, the agent-dedicated line (ADL) will exclusively attend to calls concerning self-assessment late filing penalties and appeals as well as PAYE coding enquiries. The ADL will not attend to any calls regarding progress chasing. HMRC recommends that agents utilize its online services or main helplines for […]