HLAS

The thresholds for VAT registration and deregistration have remained static for the last 7 years, however an increase in the thresholds was announced in the Spring Budget. The new registration threshold is now £90,000, increased from £85,000. The deregistration threshold has also increased to £88,000 (from £83,000). VAT registration becomes compulsory if by the end of any month, your business’s VAT taxable turnover for the previous 12 months goes above the threshold. This needs to be looked at on a rolling monthly basis, and not just at your accounting year end. It is possible to apply for a registration ‘exception’ [...]

If you run a holiday let, then you are likely well aware of the useful tax advantages that holiday lets have had for many years. Because furnished holiday lets can be treated as a trade rather than as a rental property, there are more generous deductions against income available. Also, there has been a significant advantage in property capital gains tax when selling a furnished holiday let. During the Spring Budget, the Chancellor Jeremy Hunt announced that the Furnished Holiday Lettings regime is to be abolished with effect from 6 April 2025. This means that your holiday let profits will [...]

The national insurance cuts in the Spring Budget have made most of the Budget-related headlines. So, what is the effect of this on you as an employer? Your employees benefit In last year’s autumn statement, employee’s national insurance was cut by 2 percentage points from 12% to 10%. This change went into effect on 6 January 2024. The Spring Budget extended this further by reducing the employee national insurance contribution by a further 2 percentage points, bringing the rate down to 8% from 6 April 2024. If you were planning to pay staff bonuses in your March payroll, then there [...]

Jeremy Hunt, Chancellor of the Exchequer, delivered his Spring Budget 2024 speech on 6 March 2024. This potentially is the last budget before the next general election, which will need to be held before 28 January 2025. The Budget was designed to emphasise the government’s good achievements as well as to appear to lower taxes and curry favour with voters. There was a strong emphasis towards making work pay and most headlines have focused on the cuts in National Insurance contributions for both the employed and self-employed. The Chancellor reiterated his view that lower taxes lead to growth and a [...]

The UK’s National Cyber Security Centre have highlighted the evolving tactics of Russian state-linked cyber actors. NCSC has noted that malicious cyber actors linked to Russia’s Foreign Intelligence Service (SVR) have expanded their targeting from governmental, think tank, healthcare and energy organisations to include aviation, education, law enforcement, local and state councils, government financial departments and military organisations. Traditionally, SVR actors have exploited software vulnerabilities to access information held by organisations in these sectors. However, because of the increasing move to cloud-based infrastructure, these traditional approaches are now less effective. Therefore, NCSC report that tactics have evolved to try and [...]

According to MPs, phone line waiting times for HM Revenue and Customs (HMRC) continue to worsen. A committee found that nearly two-thirds of callers had to wait more than 10 minutes to speak to an adviser. The Public Accounts Committee’s report says that in the year to April 2023, the average wait for a call to HMRC to be answered was 16 minutes and 24 seconds. This compares to 12 minutes and 22 seconds the year before. 63% of callers waited more than 10 minutes, increasing from 46% the previous year. This proportion has increased each year since 2018-19. HMRC’s [...]

New powers for Companies House based on the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) came into force on 4 March 2024. The new measures allow Companies House to combat the criminal acts and money laundering being carried by criminals abusing the company registration system. These abuses have been well documented in the news, with many examples of individuals and businesses receiving correspondence and demands addressed to companies that they have no knowledge of. Annual confirmation statements affected One of the new measures requires those setting up new companies to confirm the lawful purpose of forming a company [...]

The Carer’s Leave Act comes into force on 6 April 2024, which will affect all employers in the UK. If an employee has a dependent with: An illness or injury (mental or physical) that means they are expected to need care for more than 3 months, or A disability that’s defined as such by the Equality Act 2010, or Care needs because of their old age, Then the Act gives them the right to unpaid leave to give or arrange care. The dependent can be anyone who relies on them for care and not just a family member. The entitlement [...]

A new policy paper has been released by HM Revenue and Customs (HMRC) on Making Tax Digital for Income Tax Self Assessment for sole traders and landlords. The new tax information and impact note supersedes the previous one and incorporates the changes in scope and timelines announced in December 2022, and other policy amendments and improvements made in the Autumn Statement 2023. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) revolves around requiring businesses and landlords to keep digital records and update HMRC each quarter using compatible software. The policy paper outlines that MTD for ITSA will [...]

Value Added Tax (VAT) is a significant consideration for businesses. It impacts your cash flow, the amount of admin work needed, and even your overall profitability. One option available to businesses - with a VAT exclusive turnover of £150,000 or less - is the VAT Flat Rate Scheme (FRS), which offers a simplified approach to VAT accounting. However, deciding whether to adopt this scheme requires careful consideration of its benefits and drawbacks. The VAT Flat Rate Scheme operates by applying a fixed percentage to your turnover to determine the VAT payable to HM Revenue and Customs (HMRC). This fixed rate [...]