Jan 2021 – Capital Expenditure

Capital expenditure Capital expenditure (CAPEX) is depreciated in the accounts, but this depreciation is not allowable for tax purposes. Instead, businesses can claim specific tax allowances, but these differ considerably for ‘Plant and Machinery’ (P&M) and ‘structures and buildings’, the latter writing off the asset ...
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Jan 2021 – Is Your PSC Still Needed?

Is your PSC still needed? If all or most of a contractor’s work is going to be subject to payroll taxes under the off-payroll working rules, they may prefer to become a normal employee of that client. Although this may sometimes be an option, many ...
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Jan 2021 – Off-Payroll Working: Other Issues

Off-payroll working: other issues Where a client decides to deduct the worker’s payroll taxes when paying the invoices issued by the PSC, it has an impact in several other areas too, including: • Tax relief for expenses incurred by the PSC • The reported turnover ...
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Jan 2021 – Travel and Subsistence

Travel and subsistence The rules on tax relief for travel and subsistence are completely different depending on whether you are Selfemployed or are an employee (or director) of a company. It is easy to misunderstand them, as has been shown in two recent cases at ...
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Dec 2021 – How to Carry Back Corporate Losses

How to carry back corporate losses Did your company have a bad pandemic? Don’t panic, you may be able to turn a loss into a useful tax repayment by carrying it back to set against profits made in earlier years. If the loss is so ...
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Dec 2021 – How to Carry Back Income Tax Losses

How to carry back income tax losses Many unincorporated businesses made a loss in the tax year 2020/21, due to the pandemic. Now it’s important to make the most of such losses. By carrying back the trading losses to an earlier tax year in which ...
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Dec 2021 – NMW Common Traps

National Minimum Wage: Common traps The top three mistakes made by employers concerning the National Minimum Wage (NMW) rates are: Making deductions from wages (such as uniform or expenses) which take the pay below the NMW rate; Failing to pay workers for all the time ...
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Nov 2021 – GM Clean Air Zone – What Does This Mean For Your Business?

Greater Manchester is introducing a clean air zone from 30th May 2022. This is being brought into force in order to improve air quality across GM and is targeting vehicles which are the biggest polluters. At this stage private cars are not being included but ...
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Nov 2021 – The Importance of Valid VAT Invoices

Valid VAT invoices It is important to include enough information on your VAT invoices to allow your VAT-registered customers to reclaim the VAT charged. HMRC will block recovery of VAT charged on invoices that don’t clearly state what goods or services were supplied. HMRC officers ...
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Nov 2021 – Coronavirus Business Support – Winding Down

Coronavirus business support Winding down The support schemes put in place to help businesses through the coronavirus pandemic have been wound down or withdrawn from 30 September 2021. It is possible that some of these schemes will be reinstated if COVID-19 restrictions have to be ...
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October 2021 – Autumn Budget Summary

Chancellor Rishi Sunak announced the contents of his budget on Wednesday 27th October. Setting out the government’s tax and spending plans going forwards, here is a summary below: Economy: OBR figures show the UK’s economic recovery is expected to be quicker than expected, proposing to ...
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October 2021 – Allowances for Home Working

Allowances for homeworking If your employees are required to work from home, even on a part-time basis, you can pay them a tax-free allowance of £6 per week. This allowance is designed to compensate for additional electricity, gas or water consumed while working at home ...
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