“Self Assessment tax returns must be filed and payments made by 31 January 2024 with HMRC charging interest (now at 7.75%) and penalties on any late payments.
If you are having difficulties making your tax payments and owe less than £30,000, you can set up a Time to Pay arrangement with HMRC online to avoid penalties – though interest will still be charged.”
“If you are building your own property, have you ensured that you have recovered as much of the VAT suffered on your construction costs as possible?
Discuss the position with your accountant to determine your full eligibility to recover VAT, and watch out for the time limits.”
“If you are thinking of selling your business, we would recommend seeking appropriate tax advice as early as possible to ensure there are no unexpected tax risks and liabilities.”
“Any individuals, including those who are self-employed, who are new to Self Assessment for the 2022 to 2023 tax year must register with HMRC by 5 October 2023 to avoid any fines.
You can register on GOV.UK and will then receive a Unique Taxpayer Reference, which you will need when completing your return.”
“Many personal tax payers have significant income, but have very little scope for reducing their personal tax burden.
With a careful use of pensions, Enterprise Investment Scheme (EIS) or other similar tax efficient investments, you could significantly reduce your tax bill whilst making savings.”
“Borrowing from your company can be an expensive business if you consider s455 tax on top of the Benefit in Kind that an overdrawn directors’ loan might create.
Have you considered ways of reducing that loan and therefore the tax impact?”
“Tax enquiries are apparently on the rise from HMRC, we are seeing more VAT compliance visits and R&D tax credit claims are now more likely to be reviewed.
In our experience, it’s important to stand your ground if you are sure that your tax position is correct.”
“Following the increase in corporation tax rate to 25 % with effect from 1 April 2023 (though profits less than £50,000 are taxed at 19%), ensuring unnecessary associated companies are removed is an exercise worth considering to try to ensure the effective rate of tax is minimised.”
“Whilst we do not comment on the quality of the underlying investment, Enterprise Investment Scheme and Venture Capital Trusts can provide excellent tax savings and access to future capital tax reliefs.”
“Have you reclaimed all legitimate business expenses from your company, such as mileage, travel and parking costs, or use of home as an office?
Check your personal bank and credit card statements for business-related expenses and you might be pleasantly surprised.”
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Chartered Accountants
