HLAS

Energy Secretary Ed Miliband, alongside the reactivated Solar Taskforce, is leading a major initiative to increase the number of solar panels on homes and businesses by 2030. This forms part of a broader strategy aimed at building the UK’s energy independence, reducing reliance on fossil fuels, and shielding consumers from the impacts of volatile energy markets. What does this mean for your business? Solar power: a growing opportunity Solar energy is one of the most affordable and accessible renewable energy sources. With the growing focus on solar panels, it may be worth considering how solar energy could benefit your business. [...]

The government has introduced the Employment Rights Bill, which aims to help deliver economic security and growth for businesses, workers, and communities across the UK. This bill will bring forward 28 individual employment reforms, including ending exploitative zero-hours contracts and fire and rehire practices, as well as establishing day-one rights for paternity, parental, and bereavement leave for millions of workers. Statutory sick pay will be strengthened by removing the lower earnings limit for all workers and eliminating the waiting period before sick pay starts. The current two-year qualifying period for protection from unfair dismissal will be abolished, ensuring that all [...]

As a small business owner, it’s easy to get caught up in the day-to-day operations and miss the bigger picture. You might rely on gut feelings or a quick glance at your bank account to determine how well your business is doing. However, without specific measures of success, it can be difficult to truly understand your business's performance or identify areas for improvement. This is where Key Performance Indicators (KPIs) come into play. KPIs are measurable values that show how effectively a business is achieving its objectives. Using KPIs can be a game-changer, offering insights and clarity that help you [...]

HMRC has recently increased its use of "one to many" or "nudge" letters to taxpayers, suggesting that there could be errors or omissions in their tax returns or financial accounts. HMRC claims that these letters are a crucial part of their compliance strategy, but they are often seen as a "fishing" expedition, similar to direct mailing campaigns, which may cause unnecessary concern for taxpayers who have done nothing wrong. If you receive one of these letters, please contact us, and we will handle the situation on your behalf. Beware "Scam" letters claiming to be from HMRC We have also become [...]

The current State Pension is £11,502 and is expected to increase to around £12,000 per year for 2025/26. At current annuity rates, it would require over £300,000 to purchase an index-linked annuity starting at £12,000 annually, making it crucial to maximise your State Pension entitlement. To receive the full State Pension, 35 qualifying years are needed, but is it worthwhile to top up voluntary Class 3 National Insurance contributions for any missing years? This is ultimately a financial decision, but the break-even period is relatively short. For employees, it’s around 3 years, and for the self-employed, who can pay Class [...]

Under current pension regulations, many pension schemes allow members to withdraw up to 25% of their pension savings tax-free. However, the Finance Act 2023 capped this tax-free amount at £268,275, unless an individual had secured protection for a higher limit. There are rumours circulating that the tax-free allowance may be reduced further, with a figure of £100,000 being suggested, which has prompted a surge in pension fund withdrawals in recent weeks. It is important to note that anti-avoidance rules restrict how much can be reinvested into a pension fund within a 12-month period. Pension lump sum “recycling” is addressed by [...]

Changes to pension tax relief seems to be top of the list of possible changes in the Budget and could yield more tax revenues than changes to CGT and IHT combined. As recently as 6 April 2023, we saw the abolition of the lifetime allowance charge and a significant increase in the pension annual allowance to £60,000 a year, which Rachel Reeves commented were too generous, so we may see those changes reversed or curtailed. Possible changes to pensions to listen out for include: Limiting pension tax relief for individuals to basic rate or possibly a 30% flat rate; Further [...]

Many investors might be considering realising capital gains on their investments at current rates, in anticipation of a possible increase from 30 October 2024. They may then plan to repurchase those investments after any rate changes to maintain their portfolio balance. However, if the same shares or securities are repurchased within 30 days of the disposal, the shares bought back will be matched with those sold, potentially negating the intended capital gain and the increase in base cost. For instance, if 1,000 shares in A plc were purchased at £2 per share several years ago and sold on 29 October [...]

CGT changes typically come into effect from 6 April, although there have been instances of mid-year adjustments in the past. This potential has prompted many taxpayers to accelerate disposals in order to benefit from the existing rates. For CGT purposes, the disposal date is defined as the date of the unconditional exchange of contracts. It’s also expected that anti-forestalling measures will be introduced to prevent any artificial acceleration of disposal dates. While there is still time to sell listed investments before 30 October, selling other assets such as a business or property often requires more time, unless a buyer has [...]

Many commentators are speculating that the Capital Gains Tax (CGT) rate could be aligned with income tax rates, which would be a return to the system in place when Gordon Brown was Chancellor. Given Rachel Reeves’ admiration for Gordon Brown, it’s possible we could also see the reintroduction of taper relief. There is hope that Business Asset Disposal Relief (BADR), or a similar scheme, will continue to support entrepreneurship and economic growth. Rachel Reeves might even consider bringing back Business Asset Taper, another of Gordon Brown’s policies, which reduced the effective CGT rate to 10% after 10 years of ownership. [...]