April 2023 – Tax News

So it’s now confirmed that the UK narrowly escaped an official recession at the end of last year, and whilst we don’t ever seem too far from an economic challenge there are paradoxes aplenty in the economy. With the jobs market still buoyant and many of our clients expecting to see growth in revenue and profits this year there is still plenty to offer cheer against a back drop of rising inflation and interest rates that continues to fuel the media. We mentioned in our latest budget report that the impact of the budget remains to be determined but with plenty of change to consider, we encourage you to have a good read of it, if you haven’t already, to fully understand your position.

Tax treatment of associated companies

One of the changes that came into effect on 1st April is the treatment of corporation tax for associated companies. This means that the marginal rate of 19% on the first £50k of profits will be spread among associated companies, resulting in a higher combined tax bill for associated companies posting total profits over £50. Read more

Residential property CGT – 60 day reporting

This isn’t new, but it is still catching people out. But if you’re disposing of a residential property with a capital gain, it needs to be reported within 60 days of disposal. Read more

BIK rates still very favourable on fully electric company vehicles

If you haven’t already looked into it, the BIK (Benefit in kind) rates of just 2% on electric company cars are still incredibly inviting. With a 100% yr 1 write-down on brand new vehicles thrown in to boot, the savings versus buying a car from taxed income can amount to tens of 000s over the next couple of years. Read more

Tax investigations have increased – are you prepared for the costs?

We’ve mentioned before that HMRC recently added a further 100 investigators in an attempt to recover more tax. Even if you have done nothing wrong, getting to a satisfactory conclusion with HMRC can be a costly process for time as well as money. That’s why we recommend taking out tax investigation insurance to ensure the costs associated with professional fees required for answering an investigation can be covered. Read more

Keep on the right side of HMRC when claiming R&D tax relief
As mentioned above, HMRC will come down pretty hard on fraudulent or exaggerated claims, and they’re taking no prisoners, with some companies paying fines as much as the claim itself. Of course, that’s on top of paying back any credit received. Read more

If you’d like to talk to us about any of the content of this email or would just like a friendly chat with someone who understands your business, then please don’t hesitate to get in touch.