“Xero are retiring the old versions of their reports on 30 July 2023. While you have almost 60 days to switch to new reports, Xero recommend switching now in order to avoid disruption.
It is important to remember that these changes mean you’ll need to do your month-end reporting for July 2023 in the new version of reports.”
“With the main rate of corporation tax having risen to 25% with effect from 1 April 2023, it is important to consider your trading structure and any group or associated companies, potentially removing, or making dormant, any companies which have no separate purpose as they could affect the rate of tax paid.”
“Employers should remember that although payrolling benefits removes the requirement to submit P11D’s for your employees. Form P11D(b) should still be prepared to report the company Class 1A NIC charge.
Forms should be submitted to HMRC by 6 July following the end of the tax year.”
“Investing in a qualifying EIS/SEIS/VCT company can reduce your income tax bill by 30% (EIS/VCT) or 50% (SEIS) of the amount invested. As well as the income tax reliefs available on such investments, CGT reliefs also apply.
Whilst the tax reliefs are attractive, companies offering these benefits to investors are typically high risk and we recommend that you seek relevant investment advice to ensure you are fully aware of the pros and cons prior to investing.”
“The maximum gross contribution qualifying for tax relief that a taxpayer can make into a pension scheme each year is the higher of 100% of their relevant earnings for the tax year or £3,600.
‘Relevant earnings’ includes employment income, trading income and income from furnished holiday lettings. Do make sure you aren’t caught out by the annual allowance of £60,000.”
“Remember all VAT-registered businesses from now should be using Making Tax Digital (MTD) compatible software to keep their VAT records and file their VAT returns.”
“Bank interest is taxable income and is often covered by an individual’s personal savings allowance. The allowance you get depends on what rate of income tax you pay.
Basic rate taxpayers get an allowance of £1,000, higher rate taxpayers £500, and the allowance is removed for additional rate taxpayers.”
“You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.
The allowance is £2,000 for 2022/23, however this is reducing to £1,000 in 2023/24 and £500 in 2024/25 – this might change your reporting requirements to HMRC.”
“There are possible tax reliefs available for those letting out furnished holiday accommodation.
Profits are treated as qualifying earnings increasing the amount you may be able to pay into your pension fund, capital allowances can be claimed on plant and machinery and some Capital Gains Tax reliefs may be available when the property is sold.”
“From 6 April 2023, the dividend allowance is reducing from £2,000 to £1,000, dividend tax rates will remain at 8.75%, 33.75% and 39.35%.
This should be considered when planning for the next tax year.”
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Chartered Accountants
