HLAS

The Developing Countries Trading Scheme (DCTS) has been introduced to help UK businesses access products from around the globe at lower prices, with the aim of reducing costs for UK consumers. The UK Government launched the DCTS in addition to the products that developing countries can already export to the UK duty-free, and could now mean that 99% of goods imported from Africa under the scheme will enter the UK duty-free. The scheme means that a wide variety of products - from clothes and shoes to foods that aren’t widely produced in the UK, like olive oil and tomatoes – [...]

“Umbrella” companies are often set up by employment agencies to supply workers to end user clients. Many of these are compliant with the tax rules, but some use contrived arrangements that claim to allow agency workers and contractors to pay less tax on their earnings. HMRC have successfully challenged many of these arrangements. HMRC view these arrangements as tax avoidance schemes that use disguised remuneration arrangements to pay the workers. The umbrella company might claim that a payment is non-taxable to try to avoid paying National Insurance contributions (NICs) - currently 15.05% for employers. The arrangements also purport to avoid [...]

If your business imports goods into the UK, then you need to move to the Customs Declaration Service (CDS) now. If you do not, you will not be able to import goods into the UK from 1 October 2022. Even if you use a customs agent to help you with customs declarations, there are still actions you need to take. You will need to: Subscribe to the Customs Declaration Service. Choose a payment method. Check your standing authorities are correctly set up. Give your customs agent or broker customs clearance instructions. It can take a few weeks to move the CDS, so [...]

This is a question many of our clients want an answer to! The truth is, it depends on a range of factors and any valuation is only helpful as a guide for planning forward. 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. For instance, if you need a fast sale due to ill health, the value may be lower than if a sale was taking place [...]

If you use Royal Mail to deliver your goods, you should be aware of the planned industrial action that is due to take place on: Thursday 8 September Friday 9 September Royal Mail's services will be affected by delays to mail posted the day before, during, or in the days after any strike action. Royal Mail has contingency plans, but they cannot fully replace the daily efforts of its frontline workforce. They say that they will be doing what they can to keep services running, but customers should expect significant disruption. On days when strike action is taking place, they [...]

There continues to be poor take-up of the Government’s Tax-Free Childcare Accounts which provide a 25% subsidy towards the cost of childcare. The system operates by topping up savings of up to £8,000 per child by 25%, potentially an extra £2,000 from the Government to spend on qualifying childcare. The scheme applies to children under 12 and the account can be used to pay nursery fees, breakfast clubs, after school clubs and registered childminders. In contrast childcare vouchers may be used to pay for childcare up to age 16. Despite the PAYE and NIC advantages not all employers provided childcare [...]

The changes to the basis of assessment of self-employed profits are scheduled to change from 6 April 2024. The new rules mean that profits (and losses) will be assessed based on the amounts arising between 6 April and 5 April instead of the profit/loss of an accounting period ending in the tax year. This means that where the business accounts do not coincide with tax year the profits or losses will need to be apportioned. This is intended to coincide with the start of Making Tax Digital for income tax. Transitional rules proposed for the previous 2023/24 tax year could [...]

The figures in the table below are the HMRC suggested reimbursement rates for employees' private mileage using their company car from 1 September 2022. Remember that provided all private fuel is fully reimbursed the fuel benefit does not apply. Engine Size Petrol Diesel LPG 1400cc or less 15p (14p)   9p 1600cc or less 14p (13p)   1401cc to 2000cc 18p (17p)   11p   1601 to 2000cc 17p (16p)   Over 2000cc 27p (25p)   22p (19p)   17p (16p)   Where the employer does not pay for any fuel for the company car these are the amounts that [...]

In response to a recommendation by the Office of Tax Simplification the Government have introduced draft legislation for inclusion in Finance Bill 2023 that extends the no gain/no loss rule when a couple separate. Under the current rules the no gain/no loss rule that means that there is no CGT on transfers of assets between spouses or civil partners only applies up to the end of the tax year in which they separate. The divorce settlement or court order that transfers assets between the couple often takes place many months after the separation and may lead to CGT being payable. [...]

The Department for Business, Energy & Industrial Strategy (BEIS) has launched a call for submissions to the 2022 Hydrogen Business Model and Net Zero Hydrogen Fund Electrolytic Allocation Round. The UK is aiming to develop up to 10 gigawatts of low-carbon hydrogen generation by 2030. This is subject to affordability and value for money, with the intention that at least half of this will be from electrolytic hydrogen, drawing on the scale-up of UK offshore wind, other renewables, and new nuclear. The Energy Security Strategy sets out the ambition to support up to 1GW of electrolytic hydrogen being in construction [...]