HLAS

HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents up to date information on topics and issues that may affect them. The April edition of Employer Bulletin has articles on: reporting expenses and benefits for the tax year ending 5 April 2023; the annual ‘Tell ABAB’ survey gives small businesses a voice in the tax system; understanding your obligations on right to work and National Minimum Wage; anti-money laundering supervision YouTube videos to help businesses; preparing for the Economic Crime Levy; and the official rate of interest from 6 April 2023. See: Employer Bulletin: April 2023 [...]

Applications have now opened for energy and trade intensive sectors that are most affected by the rise in global energy prices to claim further discounts on their bills between 1 April 2023 and 31 March 2024. Ceramics and textiles are among the wide range of sectors potentially in line to benefit. These companies use high amounts of energy to deliver their goods, but also are exposed to strong international competition, meaning they cannot raise their prices to cover the increase in costs they have faced. The offer is part of the government’s new Energy Bills Discount Scheme, launched last month, [...]

Business Asset Finance is an agreement that enables businesses to obtain the assets needed to manage and/or expand effectively and spread the cost/outlay. Regardless of the size of business, the decision to invest in assets is always difficult but take a look at some of the benefits: A great alternative to a traditional bank loan; Increased tax benefits; Payments can be budgeted according to cash flow; and Lenders secure against the asset. Specialists can advise on: Hire Purchase - allows you to buy an asset and pay for it over a period of time, spreading the cost via an agreement [...]

For many small business owners, if they have one consistent issue, it would be that there is simply not enough time in the day to achieve all the things that need to be done. Have you ever got to the end of the day, having worked your “socks off” for the entire day, and asked the question “what on earth have I done today?”  If the answer is yes, then the next question is “how many days per week do you get this feeling?” So, what can you do, in an office environment for example, to free up some time [...]

With the constant news surrounding the economy, interest rate uncertainty, and high inflation, its difficult not to worry about these issues and lose sight of what’s really important – the health and welfare of you and your loved ones. The issue we all face is a potent mix of inflation, recession, high debts, and the core reason for it all, a wartime energy shock. It is not the market driving the crisis; it is geopolitics, diplomacy, and conflict. On an individual level these events are not within our control, so what can we do to keep rational whilst this crisis [...]

The Government have announced a number of tax consultations on its Tax Administration and Maintenance Day, 27 April. These include measures designed to support the Government’s ambition to simplify and modernise the tax system, tackle non-compliance, make the tax system fairer for taxpayers and to make the customs system work better for traders. One of the consultations concerns possible reforms to the Construction Industry Scheme (CIS) involving payments to sub-contractors in the construction industry. That scheme has been the subject of several changes since it was first introduced in 1971 as a revenue protection scheme designed to address the risk [...]

As a result of the pension reforms introduced by George Osborne which took effect from 6 April 2015, a drawdown pension fund has become an important part of estate planning. The fund itself is not subject to inheritance tax and, where the pensioner dies under the age of 75, there is no charge when the beneficiary draws the remaining capital. Where the pensioner dies over the age of 75 then the beneficiary is taxed at their marginal tax rate on any amounts drawn. Where an individual has both ISA savings and a drawdown pension fund, they would generally be advised [...]

The latest Finance Bill will legislate the announcement in the Spring Budget that the lifetime allowance (LTA) charge is abolished from 6 April 2023. Individuals will continue to be able to receive 25% of their pension savings as a tax-free lump sum when they become entitled to their pension benefits. From 6 April 2023, for most individuals, the tax-free amount will be capped at £268,275. The £268,275 limit represents 25% of the 2022/23 LTA of £1,073,100. The LTA has changed many times over the years and has been as high as £1.8 million. This is a complex area, but taxpayers [...]

As well as moving more and more employer returns online HMRC have announced that they will be phasing out paper self-assessment tax returns and encouraging individuals to file online. Individuals under the age of 70 within self-assessment will no longer receive a paper form through the post or be able to download a form from HMRC's website. HMRC have written to almost 135,000 taxpayers to let them know of the changes. From 6 April 2023 anyone whose individual circumstances mean they cannot file online will have the option to request a form by calling HMRC.

Where benefits in kind are provided to employees that will usually result an income tax charge on the employee and a Class 1A national insurance (NI) charge on the employer. The rate to be used for 2022/23 is 14.53% because of the withdrawal of the 1.25% Health and Social Care levy part way through the year. The income tax charge on the employee can be avoided by the employer entering into a PAYE settlement agreement (PSA) with HMRC, whereby the employer pays the income tax on the employee’s behalf. Not all benefits provided may be dealt with this way. The [...]