Employees Provided With Electric Cars Should Check They Are Taxed Correctly. 

Issues with HMRC’s online forms P11D and P46(car) mean that HMRC does not always correctly calculate electric car BIK.

Unfortunately, there are stories of issues when an electric car is reported using HMRC’s online returns. HMRC’s calculators default to assuming that the car is a high CO2 emitting petrol car. This calculates the annual BiK at 37% rather than the 1% rate that applies to electric cars for the 2021/22 tax year.

The only way to get the BiK charge corrected is for employers, or their agents or employees, to call HMRC.

National Insurance Threshold Increase

In just over two weeks time many workers will be £357 better off per year due to the rise in the National Insurance threshold.

If you currently earn over £12,570 you should notice an increase in your monthly net wage of around just under £30.


Starting your own business?

If you have recently started a business or are thinking of starting in business come and talk to us. We always welcome the opportunity to discuss your business plans and see if we can be of any help.

We aim to give you some useful tips, contacts and maybe a different perspective, and there is no charge for an initial meeting.


Avoid an Avoidance Bill

Understanding your pay arrangements is the best way to ensure you don’t get an unexpected tax bill.

Click HERE for more about this subject.


Missing out on the super-deduction allowance?

The super-deduction scheme was introduced on 1 April 2021 and will run until 31 March 2023. It allows firms investing in qualifying plant and machinery assets to benefit from a 130 per cent first-year capital allowance.

This allows companies to cut their tax bill by up to 25p for every £1 they invest. Most companies also benefit from a 50 per cent first-year allowance for qualifying special rate (including long life) assets.

To benefit from the relief, the assets purchased must be new and not second hand or refurbished equipment, nor purchased from a related party. Cars will not qualify.

The relief is also only available to incorporated companies.


£58k bounce back loan fraudsters get 18-year ban

A personal trainer and a roofer have been given a collective 18-year director ban after fraudulently obtaining bounce back loans (BBL) of £58,000.
The Insolvency Service has issued personal trainer Junaid Dar, from Birmingham, a 11-year director ban and has placed self-employed roofer David Michael Godderidge, from Tamworth, under bankruptcy restrictions for seven years which means he cannot act as a company director without permission of the courts.
The two Midland based individuals, through separate applications, applied for bounce back loans that they were not entitled to by applying through multiple lenders and inflating the price of their company’s takings to obtain loans worth £58,500 through the Covid-19 business support scheme.


Thousands of families can receive help with Easter childcare costs.

Working parents could get up to £2,000 a year to pay for regulated childcare, including holiday clubs and out-of-school activities in the Easter holidays.


Happy New Tax Year Everyone!!

It's the start of a brand new tax year today in the UK, wishing all our clients and Non-clients a prosperous year.

Get in touch with our wonderful team if you require any help or advice regarding the new tax year.


MINIMUM/LIVING WAGE INCREASE

From today, The Minimum & National Living Wage rates increase as follows:

- for 23+ to £9.50
- for 21-22 yr olds to £9.18
- for 18-20 yr olds to £6.83
- for 16-17 yr olds to £4.81

Apprentices to £4.81


Spring Statement 2022 - Key Points

- The threshold for National Insurance is to be increased from July. This means you won’t any pay income tax or NI until you’re earning £12,570

- Although self employed individuals who earn below £12,570 will no longer pay Class 2 NICs on profits between the Small Profits Threshold (£6,725) and Lower Profits Limit, they will continue to build up National Insurance credits.

- Basic rate income tax planned to drop from 20% to 19% in April 2024

- Fuel duty was cut by 5 pence per litre, among other measures aimed at easing the pressure on drivers

- The Employment Allowance, which gives relief to smaller businesses' National Insurance payments, will increase from £4,000 to £5,000 from April


What to expect from the 2022 Spring budget tomorrow?

It has been widely reported that the Chancellor could be looking at several measures to assist with the cost of living.

The Chancellor has hinted that one of the economic levers he could be about to pull is a cut in fuel duty by up to 5p-a-litre, with The Independent reporting he believes prices at the pump should not be “prohibitively expensive”.

The government could also look to make changes to the energy bills rebate, either delaying when the loan repayment starts or seeking to make the policy more generous.

There could also be a U-turn on the 1.25% national insurance increase, there was widespread outrage after the Government announced a 1.25 percentage point hike to national insurance, due to take effect in April, with many concerned about how this will affect their income.

The increase will cost the average worker £250 a year at a time when prices are soaring, with the squeeze on income expected to worsen in the coming months.

The budget is expected at noon tomorrow (23rd March)