HLAS

Figures published by the Office for National Statistics on 10 May 2024 show that the UK has officially exited recession. UK gross domestic product (GDP) is estimated to have increased by 0.6% in Quarter 1 (Jan to Mar) 2024, following declines of 0.3% in Quarter 4 (Oct to Dec) and 0.1% in Quarter 3 (July to Sept) 2023. The UK had entered a period of recession after its GDP had shrunk for more than two quarters in a row. To read more, see: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/januarytomarch2024

Over the last two years, the tax-free allowance for capital gains tax has been cut by over three-quarters. For the tax year that recently began on 6 April 2024, the Annual Exempt Amount has been reduced to £3,000 (£1,500 for trustees). These reductions mean that more and more of us are likely to be affected by capital gains tax. What is capital gains tax? You could think of capital gains tax as a tax you pay when you make money from selling something that has increased in value. This “something” could be anything from a house to shares or even [...]

New requirements for single sex toilet facilities in new non-domestic buildings are being brought forward. Mixed sex toilet spaces where cubicles and hand-washing facilities are shared have been on the rise, but concerns have been raised about the privacy and dignity they deny to both men and women. The new building regulations will mean that new non-domestic buildings, including offices, restaurants, shopping centres, and public toilets will have to provide separate single-sex toilets for women and men. Self-contained universal toilets can be provided in addition where space allows. Only if there is no space for single-sex toilets can universal toilets [...]

Rian O’Keeffe is the latest fraudster brought to justice as part of the ongoing investigations into abuse of the Bounce Back Loan scheme. O’Keeffe applied for and received a £50,000 Bounce Back Loan in July 2020 based on a claim that it would be used within his business called Trainersource. He claimed that his business had been trading since March 2020 and had a turnover of £312,000. In reality, Trainersource was a fictitious business that did not exist and seems to only have been an idea O’Keeffe had. After receiving the loan money, O’Keeffe withdrew £14,000 on the same day, [...]

The UK government has announced a new initiative aimed at helping people with health conditions stay in or return to work. The WorkWell pilot scheme, launched by the Department for Work and Pensions (DWP) and the Department for Health and Social Care (DHSC), will provide tailored support to individuals across 15 areas of England, connecting them with local services that can help them with their health and employment needs. From October, the WorkWell pilots will offer individuals access to a range of local support services, including physiotherapy and counselling. The pilots are connected to the Prime Minister’s recent comments about [...]

While participation in Making Tax Digital for Income Tax Self Assessment (MTD ITSA) isn't mandatory until at least April 6, 2026, certain individuals can opt into HMRC's pilot testing. The beta testing of MTD ITSA was reintroduced by HMRC on April 22, 2024. Currently, HMRC has listed just five software products as compatible with MTD, with an additional 21 in various stages of development. The currently compatible products include: 123 Sheets, Intuit QuickBooks Online, Sage Accounting, SE_Reports, and Self Assessment Direct. Each product must meet HMRC's minimum functionality standards. If your current accounting software isn't listed, it may soon gain [...]

Traveling from home to an employee’s regular workplace doesn't qualify for tax relief, known as "ordinary commuting." Moreover, if the employer reimburses the journey's costs, those costs become taxable. There are exceptions, particularly when the employer covers the cost of the employee traveling home safely in a taxi late at night. On the other hand, traveling to a "temporary workplace" is considered a qualifying business journey, and if the employer reimburses the costs, there's no taxable benefit. It's worth noting that associated subsistence costs, such as overnight hotel accommodations, are also tax-free. HMRC Booklet 490 offers detailed guidance on employee [...]

HMRC have confirmed that the official rate of interest for employee and directors’ beneficial loans remains at 2.25% for 2024/25, despite a Bank of England base interest rate of 5.25%. This means that where the employer lends an employee more than £10,000, the taxable benefit would be the difference between 2.25% and the amount paid on the outstanding loan.

If you're contemplating lending money to, or investing in shares of, an unquoted trading company, there's always a risk of losing your investment, as with many investments. However, there's potential tax relief for the lender if certain conditions are met, particularly if the loan is used entirely for the company's trade purposes and not for money lending. Capital Loss on Shares in an Unquoted Trading Company This relief comes in the form of a capital loss that can offset gains in the same or future tax years. To claim this relief, the principal amount of the loan must have become [...]

Since it was decided in 2017, landlines across the UK are being updated by telecom companies to new digital technology using an internet connection. The switchover should be complete by December 2025. The old analogue system, referred to as Public Switched Telephone Network (PSTN), has reached end of its serviceable life, and telecom companies are now finding it difficult to source the parts they need to continue maintaining it. The new digital phone lines work using a VoIP service, and you will need to switch to a VoIP service to continue using your landline. The digital connection should allow businesses [...]