HLAS

The Digital Markets, Competition and Consumers Act has officially received Royal Assent and is now law in the UK. This new legislation aims to safeguard consumers and promote fair competition, particularly focusing on large technology firms. Key Points of the Act: Consumer Protection: Transparent Subscriptions: Businesses must provide clear information about subscription costs, notify consumers when trials are ending, and simplify the cancellation process. Upfront Costs: All costs, including hidden fees, must be disclosed upfront, eliminating unexpected charges during online checkouts. Ban on Fake Reviews: The Act prohibits fake reviews, ensuring consumers can trust online feedback. Empowering Regulators: Enhanced CMA [...]

The National Cyber Security Centre (NCSC) has released guidance to assist developers, engineers, decision-makers, and risk owners in designing and using machine learning systems. Machine learning is a form of artificial intelligence where computers identify patterns in data or solve problems automatically. To illustrate, consider how you might teach a child to recognize different animals. Instead of explaining all the rules to identify a cat or a dog, you show them numerous pictures of cats and dogs and tell them which is which. Over time, the child becomes better at distinguishing between cats and dogs just by looking at them. [...]

The Office for National Statistics conducts a bi-weekly Business Insights and Conditions Survey (BICS). The latest voluntary responses provided the following insights. Worker Shortages Decreasing 21% of businesses with 10 or more employees are currently experiencing worker shortages. This is a decrease from May 2023, when 28% of businesses reported shortages. Increase in Sales 21% of businesses reported a decrease in turnover in April 2024 compared to March 2024, a similar proportion to the previous month. Conversely, 19% of businesses reported an increase in turnover, up from 16% last month. This suggests that there is more sales activity, in line [...]

Imagine this: your business is thriving, and it’s time to invest in new equipment or a company vehicle. But with so many financing options available, how do you choose the right one for your needs? Let’s explore three popular choices – leasing, contract hire, and hire purchase – so you can make an informed decision without getting bogged down by financial jargon. Lease Leasing involves renting an asset (like machinery, a vehicle, or a computer) from a finance company for a predetermined period. Once the lease term ends, you typically return the asset, though there may be an option to [...]

The table below sets out the HMRC advisory furl rates from 1 June 2024. These are the suggested reimbursement rates for employees' private mileage using their company car. Where the employer does not pay for any fuel for the company car these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee. Where there has been a change the previous rate is shown in brackets. You can also continue to use the previous rates for up to 1 month from the date the new rates apply. Note that for hybrid [...]

As mentioned earlier, the HMRC rate of interest on beneficial loans is highly attractive compared to the Bank of England Base Rate of 5.25% and the higher rates charged by banks for unsecured loans. When loans are made to participators (generally shareholders) of a close company, there is a potential special tax charge on the company for any loan still outstanding nine months after the end of the accounting period. The current charge is 33.75%, matching the higher rate of tax on dividend income. This tax charge is only refunded to the company once the loan to the participator is [...]

HMRC has announced that the official rate of interest will remain at 2.25% for the 2024/25 tax year, despite the Bank of England Base Rate currently being 5.25%. This official rate is used to calculate the income tax charge on the benefit of employment-related loans and the taxable benefit of some employment-related living accommodations. In the past, these rates fluctuated with the base rate and changed several times a year, but HMRC has recently fixed the rate for the entire tax year, simplifying the calculation of the taxable benefit. Employers reporting beneficial loans on form P11d for the 2023/24 tax [...]

When a company car is provided for an employee or director, the employee incurs a taxable benefit based on the car's original list price multiplied by its CO2 emissions percentage. Additionally, if the employer pays for private fuel, this benefit must be reported on form P11d, unless the employer has arranged with HMRC to handle the tax on these benefits through monthly payroll. If the employee does not fully reimburse the employer for private mileage, the taxable benefit is based on a notional list price of £27,800 multiplied by the vehicle's CO2 emissions percentage, potentially up to 37%, resulting in [...]

The deadline for reporting shares, securities, and share options issued to employees for the 2023/24 tax year is 6 July 2024, aligning with the deadline for reporting expenses and benefits on form P11d. Employers must submit their employment-related securities annual returns online and include the appropriate spreadsheet template if applicable. HMRC provides downloadable templates on their website for data entry and upload. There are specific templates for each of the four tax-advantaged employee share schemes: Company Share Option Plan (CSOP), Enterprise Management Incentives (EMI), Save and You Earn (SAYE) share options, and Share Incentive Plans (SIP). Additionally, employers must report [...]

P11d forms for reporting expenses and benefits in kind provided to employees and directors for the 2023/24 tax year must be submitted online by 6 July 2024. Paper forms are no longer acceptable; submissions must be made using PAYE Online for employers or commercial software. Remember, reimbursed expenses that are incurred wholly, exclusively, and necessarily for the performance of the employee's duties no longer need to be reported. Dispensations from reporting are no longer required, although HMRC expects internal controls to ensure that these expenses qualify. Additionally, trivial benefits worth no more than £50 provided to employees do not need [...]