HLAS

With the increases in National Insurance Contributions (NIC) from 6 April 2022 many employees and their employees are considering changing their entitlement to their contractual salary for either tax free benefits in kind such as additional contributions into their pension, or benefits in kind that have a low tax and NIC charge such as an electric company car. This needs to be done with care and requires a change to the Contract of Employment. From 6 April 2017 where a benefit is given as part of optional remuneration arrangement (salary sacrifice), the rules for valuing the amount of the benefit [...]

From 2023/24 there will be a separate 1.25% deduction on employee payslips for the Health and Social Care Levy announced by the Prime Minister last September. However, for 2022/23 there will be a 1.25% increase in the rate of national insurance contributions. HMRC is asking employers, where appropriate, to include the following message on payslips: ‘1.25% uplift in NICs, funds NHS, health & social care’. Note, this is not obligatory.

P2P is a relatively new concept which bypasses the banks to allow businesses to borrow money directly from ordinary people. Businesses get the funding they need, and lenders get a better rate than they would leaving their money in the bank. In between the borrower and the lender stands the P2P platform which handles the collection and distribution of loans and repayments. P2P is very bespoke. The idea is to assess what the business needs first rather than attempting to fit them into a ‘product’. Consequently, an early informal chat through is often the best way to progress. Our P2P [...]

Then ask us about our comprehensive guide to the financial, tax and accounting considerations of starting a business, “The New Business Kit” which we offer free to start ups or those who have recently made the jump into business ownership. The guide helps start-ups think about: Selecting a legal entity; Registering with the tax authorities; Accounting and bookkeeping; Value Added Tax; Payroll taxes and pensions; Income and corporation tax; Cash planning and forecasting; Insurance; Selecting professional advisers; and Digital accounting systems. In addition there is a section of useful names, addresses and telephone numbers. Just ask – it is free!

Successful businesses all have two things in common – a thorough understanding of customer needs, and they have a total dedication to their customers. This involves the process of knowing: Who their customers are; Their customers’ perception of the company and their needs; and How to attract them back time and time again! The logic is that you gather information about your business and get an insight into the way customers and prospective customers think and make ‘buy’ decisions. So, take a day out to work on your marketing plan and set some targets. At the end of a marketing [...]

2022/23 National Insurance Bands Increase Unless the Chancellor makes an announcement to the contrary on 23 March, which is very unlikely, the rates of National Insurance Contributions for workers and employers increase by 1.25% from 6 April 2022. This is to provide extra funding for health and social care and will become a separate Levy from 2023/24.   The starting thresholds for employee and employer national insurance contributions (NICs) have also been increased. Employees will be liable to 13.25% NICs between £190 and £967 a week (£50,270 a year). Employer contributions at 15.05% will start at £175 a week.   [...]

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 March 2022. Where there has been a change the previous rate is shown in brackets.   Engine Size Petrol Diesel LPG 1400cc or less 13p   8p (9p) 1600cc or less   11p   1401cc to 2000cc 15p   10p 1601 to 2000cc   13p     Over 2000cc 22p 16p 15p   Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new [...]

Your business year end, not 5 April, is relevant for capital allowances purposes. If, however you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA). The AIA provides a 100% tax write off for new and second hand equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars but there is a special 100% tax relief if [...]

The government are concerned about the lack of take up of tax-free childcare accounts, with HMRC estimating that only about 25% of families eligible for the scheme had joined. With many parents returning to work following the pandemic, they should be encouraged to set up a tax free childcare account to help with their childcare costs. For every £8 paid into an online account, the government will add an extra £2, up to £2,000 per child per year and that money must be used to pay eligible childcare costs. Tax-free childcare is available for working families (including the self-employed) who are not [...]