“With good planning, you can set up your business to allow it to be sold tax efficiently, whether that is the sale of all or part of your business.
Failure to plan in advance, can make for inefficient sales and more costs/tax.”
“With Making Tax Digital for VAT becoming mandatory for all VAT registered businesses from 1 April 2022, it’s important you have the correct MTD-compliant software for your business.
There are many benefits to cloud accounting including allowing your business advisers to give better quality advice based on the most accurate, up-to-date information.”
“As we approach the next tax year end, thoughts turn towards tax efficient investments such as ISA, EIS, VCT and pensions.
If you have income tax you are seeking to legitimately shelter, then these forms of investment can provide valuable tax reliefs, though you should ensure the underlying investment remains robust.”
“We were one of the first firms in Scotland to implement an Employee Ownership Trust for a client and in recent years, we have seen a huge rise in this type of arrangement.
This can often act as a way for an owner to retire, fully or in part, at full market value, whilst preserving the ownership of the business in the hands of the employee group.”
“Interest on loans, used to fund residential property purchases, can only be relieved at the basic rate of income tax, which can represent a significant restriction of tax relief for higher rate tax payers.
You should consider the structure of your total debt to see if any savings overall could be made.”
“With the VAT rate returning to the standard 20% from 1 April 2022, leisure and hospitality businesses should be taking advantage of the current reduced rate to boost cashflow or secure more bookings now.”
“If you are due to make payments on account towards your 2020/21 tax liability or deferred your second payment on account for 2019/20, and have not paid this subsequently, this forms part of your 31 January 2022 tax payment.
However, if you are unable to pay your tax liabilities before the 31 January deadline, contact HMRC to request a payment arrangement.”
“Talk with your accountant about your 31 January 2022 liability as your tax payments could be overstated in some circumstances.
Whilst tax repayments are great to receive, it is often an indicator that you have overpaid tax in the first instance.”
“Remember that the deadline for filing your 2020-21 Self Assessment tax return online is 31 January 2022. Any balancing tax due for 2020/21 together with first payments on account for 2021/22 are due on the same date.
If you do not meet these deadlines, HMRC will automatically charge late filing penalties and interest. If you are unable to pay your tax liabilities on time it may be possible to agree a Time to Pay arrangement with HMRC.”
“This Christmas, remember that employers can give their employees a tax-free gift that costs £50 or less, as long as it meets the criteria set out by HMRC.
Known as a ‘trivial benefit’, it is a great way to show your employees how much you value and appreciate them, especially at Christmas.”
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Chartered Accountants
