HLAS

Unless the business year end is 31 March or 5 April, the end of the tax year is not a significant date as far as capital allowances are concerned. In order for new equipment to attract capital allowances, the expenditure must be incurred on or before the end of the accounting period. Limited companies buying new (not second hand) equipment are entitled to fully expense the cost of most acquisitions against business profits. There is no financial limit on expenditure qualifying for this “full expensing” relief. Unincorporated businesses are entitled to 100% write off for the first £1 million spent [...]

On top of the major changes to research and development (R&D) tax relief that took effect from 1 April 2023, there are yet more changes that take effect from 1 April 2024. The main change from 1 April 2024 is that most companies carrying out qualifying R&D will be entitled to a 20% expenditure credit. The 20% is calculated on the amount of qualifying expenditure. Qualifying expenditure is extended to include subsidised expenditure from 1 April 2024, although R&D carried out overseas will no longer qualify unless the work cannot be undertaken in the UK. “R&D intensive” companies that make [...]

Under the current rules, the government adds to your pension contributions at the 20% basic rate. For instance, if you save £4,000 in a personal pension, the government tops this up to £5,000. If you are a higher rate taxpayer there is a further £1,000 tax relief when your tax liability is calculated, reducing the net cost to £3,000. Additional pension contributions can be even more effective if your income is between £100,000 and £125,140 as the gross pension contribution reduces net income for the purposes of the reduction in the personal allowance. Note that for every £2 of income [...]

Those aged between 18 and 40 can set up a Lifetime ISA (Individual Savings Account) to buy their first home or save for later life. You can put in up to £4,000 each year until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.  Note that the Lifetime ISA limit of £4,000 counts towards your £20,000 annual ISA limit. You can withdraw money from your ISA if you’re: buying your first home, aged 60 or over, or terminally ill, with less than 12 months to live. However, you’ll pay [...]

The Health and Safety Executive (HSE) have launched a new initiative, Asbestos: Your Duty. This initiative targets workplaces, schools and hospitals with the aim of safeguarding individuals from asbestos exposure. Asbestos is a hazardous substance that saw widespread use in post-war construction, prior to being completely banned in 1999. Sarah Albon, HSE’s chief executive said that “asbestos exposure in Great Britain is still the single greatest cause of work-related deaths due to exposures decades ago.” Workplaces such as offices and factories, schools, hospitals, and places of worship all come with a legal duty to manage asbestos. Therefore, business owners and [...]

A Code of Practice on cyber security governance has been published by the Department for Science, Innovation & Technology that is designed to help businesses better defend themselves from cyber threats. The more digital business life has become, the more cyber security issues have become an essential part of risk management for every business. Figures indicate that 32% of firms have experienced a cyber breach or attack in the last year, and ransomware attacks and malicious actors posing significant threats continue to rise. Even the NHS 111 service was taken offline recently by a cyber-attack. Because of its prevalence and [...]

HMRC released figures last week indicating that some 3.8 million tax returns were yet to be filed before the 31 January deadline. In total, they are expecting more than 12.1 million tax returns to be filed. With a week to go, they had received 8.3 million online returns, leaving a lot of activity for the final week. Myrtle Lloyd, HMRC’s Director General for Customer Services, encouraged anyone still to file that “now is the time to take action and get your return done.” Penalties for late filing and interest on tax owed provide additional incentives for doing as he urged. [...]

The Economic Crime and Corporate Transparency Act, which received royal assent on October 26, 2023, gives Companies House the power to play a more substantial role in tackling economic crime. It is anticipated that the initial set of changes introduced by this transformative legislation will happen on or shortly after March 4. The changes are currently waiting for parliament to approve the secondary legislation. Key amendments include new rules for registered office addresses, additional powers to be able to query information and request supporting evidence and make stronger checks on company names, as well as the ability to share data [...]

The Department for Business and Trade are making changes that will ban dripped fees, make fake reviews illegal, and make sure that price labelling on supermarket shelves is clearer. These measures are part of the Digital Markets, Competition and Consumer Bill that is currently progressing through Parliament. Dripped pricing refers to when an initial price is shown to a consumer, but additional fees are “dripped” into the checkout later in the buying process. These hidden fees will be outlawed under the new measures so that online shoppers are instead given a clear idea upfront of what they will pay. It [...]

In a busy week for cyber-related news, the National Cyber Security Centre (NCSC), have released a warning that they anticipate global ransomware threats to rise with AI. They have published an assessment of the near-term impact of AI on the cyber threat. In it, they conclude that AI is already being used in malicious cyber activity and this will only increase. The report suggests that AI lowers the barrier of entry by effectively giving unskilled and novice cyber criminals and hackers access to skills that would otherwise take considerable time to develop. NCSC therefore anticipate an increase in the volume [...]