HLAS

Here is a summary of information provided by HMRC on tax reliefs available for innovative companies. Please contact us if you need more information. Patent Box The aim of the Patent Box is to provide an additional incentive for companies to retain and commercialise existing patents and to develop new innovative patented products: Corporation Tax: The Patent Box – GOV.UK Guidance CIRD200000and pages following set out the qualifying criteria CIRD275000includes a flowchart for the computation required. Research and Development Tax credits (R&D), (including Advanced Assurance)  Research and Development (R&D) tax relief (or credit) is a company tax relief that may [...]

Do you agree?  Most of our other clients do.  In this economy CASH IS KING and managing your cash flow is more important than ever. If you are concerned about the future of the economy, then take some time to reflect on where you are and what could happen in the next few months. It is now vitally important for all businesses to plan ahead for a range of scenarios. Cash flow and business planning in these uncertain times may appear difficult but there are some practical steps you can take to minimise potential disruption to your business. Review your [...]

Unbelievably there were very few changes to the HMRC advisory fuel rates from 1 March 2022, which may not have been your experience at the filling station! Now that the increased prices have fed through into the HMRC calculations there are some significant increases from 1 June 2022, as set out in the table below. In cases where the employee pays for the car fuel, these mileage rates should be used by the employer to reimburse the employee for business journeys. In cases where the employer pays for the car fuel, these mileage rates should be used by the employee [...]

When a married couple or civil partners separate, tax planning is understandably not at the top of the list of their thoughts. However, a ‘no gain/no loss’ rule allows capital assets to be transferred between them free of capital gains tax (CGT) up to the end of the tax year in which they permanently separate. Beyond that date, asset transfers between the couple will often give rise to a CGT liability. With many divorce settlements taking several months this is worth careful consideration. The Office of Tax Simplification has recommended to the Treasury that the no gain/no loss rule should [...]

Many employers and employees have been putting in place salary sacrifice arrangements to give up some of their contractual salary in exchange for additional pension contributions or an electric company car. In these specific cases and if correctly structured, the employee is taxed on the lower of the taxable benefit and the salary foregone. In the case of the electric car the benefit is currently 2% of the original list price. There is no taxable benefit on employer pension contributions. When the director or employee enters into the salary sacrifice arrangement, they must agree with their employer to vary the [...]

The shortage of semiconductors has meant long delays in the delivery of new cars. This has caused many company car drivers to choose a second hand car instead, but what are the tax consequences? Unless the car has zero emissions, the capital allowance rules are the same for new and used cars bought by the business. Plant and machinery capital allowances may be claimed on the purchase price of the car at either 18% or 6%, depending on whether the CO2 emissions for the vehicle are below or above 50g CO2 per km. Where a zero-emission car is acquired by [...]

The Employment Allowance (EA) is a £5,000 allowance set against employer National Insurance Contributions (NICs) and has to be claimed each tax year by qualifying employers. The EA was increased from £4,000 to £5,000 this tax year to help to soften the blow of the 1.25% increase in employer contributions, now calculated at 15.05%. If two or more companies or charities are connected with one another, then only one of them may claim the EA. Employers are not eligible to claim the EA where their employers’ Class 1 NationalInsurance liabilities in the previous tax year exceeded £100,000. Another important exclusion [...]

P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2021/22 need to be submitted by 6 July 2022. Remember that reimbursed expenses no longer need to be reported where they are incurred ‘wholly, exclusively and necessarily’ in the performance of the employee's duties. HMRC do however expect internal controls to be in place to ensure that the reimbursed expenses qualify under these terms. Note also that non-cash ‘trivial benefits’ that cost no more than £50 do not usually need to be reported. This typically covers non-cash gifts to employees at Christmas and on their [...]

Millions of people across the country could benefit from cleaner air and cheaper ways to travel and keep active, thanks to £200 million of government funding for new walking and cycling schemes across England announced last week. The government’s new executive agency Active Travel England, led by Chris Boardman, will oversee the delivery of 134 first-rate schemes, backed by £161 million, which include new footways, cycle lanes and pedestrian crossings across 46 local authorities outside London. The projects will create new routes and improve existing ones, making it easier and cheaper for people to choose active and green ways of [...]

The world’s largest fleet of zero emission HGVs will take to UK roads through plans to achieve cleaner air and greener jobs, while helping to keep costs down on consumer goods. £200 million of government funding will be injected into an extensive zero emission road freight demonstrator programme, at Logistics UK’s Future Logistics Conference earlier this month. The 3-year comparative programme will begin later this year to help decarbonise the UK’s freight industry with initial competitions for battery, electric and hydrogen fuel cell technology launching shortly. This could see hundreds more zero-emission HGVs rolled out across the nation and save [...]