HLAS

HMRC frequently warn taxpayers that when a tax avoidance scheme looks “too good to be true”, it probably is. They publish “Spotlights” on their website to alert taxpayers of schemes being marketed by promoters that are under scrutiny, and, in their opinion, do not work. Tax avoidance schemes need to be notified to HMRC under the Disclosure of Tax Avoidance Schemes (DOTAS) rules, normally by the scheme promoter. HMRC then issue a DOTAS scheme reference number (SRN). This does not mean that the scheme is HMRC approved, although some promoters claim this in their marketing literature. If taxpayers have used [...]

During the COVID pandemic the government relaxed the conditions to enable those working from home to be paid £6 a week tax free by their employer, or, where that was not paid by the employer, they could claim relief for £6 a week against their employment income for a tax refund from HMRC. Those relaxed rules applied for 2020/21 and 2021/22. Many employers and employees may not be aware that from 6 April 2022 the rules reverted to the strict statutory position. Employees can claim tax relief if they have to work from home under a homeworking agreement, for example [...]

The VAT Flat Rate scheme was introduced in 2002 to simplify VAT reporting for small traders, reducing the time taken to calculate VAT and prepare returns compared to normal VAT accounting. The thresholds for using (£150,000 pa) and exiting the scheme (£230,000 pa) have not changed since 2003. With the extension of Making Tax Digital to all VAT registered businesses, those traders are now required to keep digital records and, arguably, the time saving benefits have reduced. The decision as to whether or not traders should use the scheme should now be based on the amount of VAT payable and [...]

In the Spring Budget the Chancellor announced that “full expensing” - 100% relief for new, eligible plant and machinery - would replace the 130% super-deduction from 1 April 2023 for limited companies. This is in addition to the £1 million annual investment allowance (AIA) and will be available for expenditure incurred up to 31 March 2026. Unlike with AIA, the equipment must be new and must qualify for inclusion in the capital allowances general pool.  The legislation specifically excludes motor cars and assets for leasing. The items purchased are not pooled with other equipment, and a separate record needs to [...]

With all of the changes to personal pensions in the Spring Budget, maximising the State Pension entitlement should not be overlooked. The full rate of new State Pension increased to £203.85 per week (£10,600 pa) from 6 April 2023; a 10.1% increase over the 2022/23 rate as a result of the “triple lock” being restored. At least 10 qualifying years are required to get a UK State Pension, with full State Pension entitlement at 35 qualifying years. Individuals should log into their Government Gateway account to check their contribution record as they may be entitled to credit for missing years, [...]

The Space Clusters Infrastructure Fund (SCIF) will award more than £50 million in matched funding to UK organisations, as part of a competition to increase the capability, capacity, and connectivity of the UK’s space research and development (R&D) infrastructure. The funding is available to businesses and academic institutions that can deliver projects to procure, build or upgrade R&D facilities and equipment that will bring high-potential, high-value space technologies to market. The infrastructure developed through this funding will enable UK space organisations to accelerate pioneering products and applications that will become critical for the success of future space missions while making [...]

This consultation sets out proposals for key areas of retained EU employment law that the Department for Business and Trade (DBT) is responsible for. The consultation seeks views on 3 areas of retained EU employment law which could benefit from reform: record keeping requirements under the working time regulations; simplifying annual leave and holiday pay calculations in the working time regulations; and consultation requirements under the Transfer of Undertakings (Protection of Employment) regulations (TUPE). The consultation closes on 7 July 2023. See: Retained EU employment law reforms - GOV.UK (www.gov.uk)

The UK Government has published guidance for employers on how to measure, report on and address any ethnicity pay differences within their workforce. Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees. The guidance includes advice on: collecting ethnicity pay data for employees; how to consider data issues such as confidentiality, aggregating ethnic groups and the location of employees; the recommended calculations and step by step instructions on how to do them; reporting the findings; further analysis that may be needed to understand the underlying causes of any disparities; and [...]

The Help to Grow: Management scheme offers business leaders 50 hours of leadership and management training across 12 weeks. It means, for as little as £750, business leaders can benefit from one-to-one support from a business mentor, access to a network of like-minded business leaders, and a bespoke growth plan to help the business reach its full potential. Designed to be manageable alongside full-time work, this programme will support small business leaders to develop their strategic skills with key modules covering financial management, innovation, and digital adoption. See: Homepage - Help to Grow

The Bank of England (BOE) raised interest rates by half a point to 5 per cent last week, with increasing calls for tougher action to fight persistent high inflation. Andrew Bailey, the governor of the Bank of England, said that the Bank thinks inflation - the rate at which prices are rising - will fall "markedly this year" but adds there are signs of it being "persistent". Recent figures showed that inflation did not fall as expected and remained at 8.7% in the year to May. Bailey confirmed that the BOE thought it was “right” that they took this action [...]