HLAS

Making Tax Digital (MTD) for Income Tax will require businesses to keep digital accounting records and submit quarterly returns to HMRC. These changes will apply to businesses, self-employed individuals and landlords with turnover over £50,000 from 6 April 2026. Those with turnover above £30,000 will be mandated to comply from 6 April 2027 and other businesses and landlords may be mandated at a later date. Since MTD was announced, we have been working with many of our clients to help them streamline the way they keep their books and help them prepare for digital bookkeeping ahead of the law change. [...]

A company might have a great product or service but without a business growth strategy to help it define, articulate, and communicate where it is going, it may not grow at all! A growth strategy starts with identifying and accessing opportunities within your market. The strategy addresses how your company is going to evolve to meet the challenges of today and in the future. A growth strategy gives your company purpose, and it answers questions about your long-term plans. Having a growth strategy is important because it keeps your company working towards goals that go beyond what is happening in [...]

The government is changing regulations to allow longer trailers on GB roads, which it estimates will save 70,000 tonnes of carbon dioxide from being released into the atmosphere. These longer trailers, known as longer semi-trailers (LST) measure up to 2.05 metres longer than a standard semi-trailer and can be towed by a lorry. The move follows an 11-year trial to ensure LSTs are used safely on roads, and operators will be encouraged to put extra safety checks and training in place. The trial demonstrated that LSTs were involved in around 61% fewer personal injury collisions than conventional lorries. Legislation was laid before the UK parliament on [...]

UK registered businesses can apply for funding to develop digital applications to solve challenges in delivering net zero for places. Innovate UK, part of UK Research and Innovation, will invest up to £1.5 million through this competition, as part of the Net Zero Living programme. The aim of this competition is to support ambitious, early-stage digital focussed businesses in developing and delivering net zero in relation to challenges based on place. This must be done through data driven digital applications and by collaborating with potential customers and product users. By accelerating their journey, the funders hope to create high growth businesses [...]

Each month, the Office for National Statistics (ONS) publishes  the latest annual inflation rate, which measures the change in the price of regularly purchased items (known as the basket of goods and services) compared with the same time the previous year. Some goods and services contribute more to the overall inflation rate than others: if some items see a large increase in prices, while others stay more stable, then inflation would be driven by the changing prices in that spending category. So, how the headline inflation rate affects your household depends on which items you tend to spend your money on. The [...]

This is a question many of our clients want answering! The truth is, it depends on a range of factors and any valuation is only useful as a guide for planning froward. The ultimate value of a business is the price a willing buyer is prepared to pay for it. The prevailing economic climate and state of the business’ sector can affect company valuation for better or worse, as can your reasons for selling. If you need a fast sale due to ill health, for instance, the value may be lower than if a sale was taking place under more [...]

Earlier this month the Bank of England (BOE) raised interest rates for a 12th consecutive time as the rate of rising prices remains high. The Bank rate has gone up from 4.25% to 4.5%. The BOE has been under pressure to put rates up because it has a target to keep inflation at 2%, but prices are currently rising at more than five times that level. The rate of interest is at its highest for almost 15 years. The BOE has been increasing interest rates since December 2021 to try to control inflation, which now stands above 10%. It looks [...]

The table below sets out the HMRC advisory fuel rates that apply from 1 June 2023. These are published quarterly these days due to the volatility in petrol and diesel prices in recent years. Where the employer provides an employee with a company car there may be an additional benefit in kind on the provision of fuel for private journeys which needs to be reported on form P11d. This additional benefit is based on a notional list price for the vehicle of £25,300 for 2022/23 which applies irrespective of the original list price of the vehicle normally used to compute [...]

The HMRC rate of interest on beneficial loans looks very attractive compared to the Bank of England Base rate of 4.5% and much higher rates charged by banks for unsecured loans. Note that where loans are made to participators (broadly shareholders) of a close company there is potentially a special tax charge on the company on any loan still outstanding 9 months after the end of the accounting period. The charge is currently 33.75%, the same as the higher rate of tax on dividend income. This tax  charge is only repaid to the company when the loan is repaid or [...]

HMRC have announced that the official rate of interest will increase from 2% to 2.25% on 6 April 2023. The official rate of interest is used to calculate the income tax charge on the benefit of employment related loans and the taxable benefit of some employment related living accommodation. These rates used to fluctuate in line with base rate but in recent years HMRC has fixed the rate for the whole tax year. For those employers including beneficial loans on form P11d for 2022/23 the average official rate to be used is 2%.  The charge applies where the amount of [...]