11 August 2022

Why is there a 60% income tax rate?

Recent headlines have been bringing marginal tax rates back into the spotlight. The tapering of Personal Allowances combined with rapid inflation seems to create a higher tax rate of 60%. However, the 60% tax rate isn’t really new – it’s been around in some form since the 2010-2011 tax year. It’s not a glitch in personal allowance legislation, as suggested by The Times. At the time, the legislation was designed specifically to raise more revenue while maintaining the £150,000 threshold for the newer 45% additional tax rate.

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03 August 2022

What to do if employees can’t get to work due to transport strikes or flight cancellations

With strikes and cancellations affecting trains and planes across the UK and Europe this summer, employers need to be prepared in case an employee can’t travel to work or gets stuck overseas. While the disruption is frustrating enough for holidaymakers, the knock-on effect on employers is also causing strain – from rescheduling annual leave to having to operate with absent employees. If your business hasn’t experienced this type of scenario before, you might be unsure about your company policy regarding these situations. So, what are your options if staff can’t get to work? This blog explains what you should know from the perspective of employment law.

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27 July 2022

What’s the ‘period of ownership’ for private residence disposal?

When you dispose of a private residence and make a profit from its sale, you won’t have to pay Capital Gains Tax (CGT) on it if the property was your main residence throughout the time you owned it – known as the ‘period of ownership’. But what exactly qualifies? How do you know whether you’re liable to pay Capital Gains Tax or not, and how do you calculate such an exemption? Let’s look at some examples, and run through the basics of Private Residence Relief for CGT.

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27 July 2022

What are the tax implications of a no fault divorce?

‘No fault’ divorce went from a legal possibility to a reality in April 2022. Though there have been no connected changes to tax rules, this type of divorce still has financial implications for the divorcees. Now that ‘no fault’ divorces allow estranged couples in England and Wales to end their marriage without having to assign blame, each person has more time to focus on finances and tax efficiency. Here’s what you need to know about the tax implications of no fault divorces in England and Wales.

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15 July 2022

Are you on top of the latest Making Tax Digital developments?

We’ve been covering the ongoing developments with the Making Tax Digital roll-out for a while here on the GBAC blog, and now we’re back to discuss the latest issues with MTD. Currently, the biggest concerns for many are the pilot scheme for MTD for Income Tax and the expansion of MTD for VAT. Here’s the latest information on both of these parts of MTD.

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08 July 2022

HMRC decommissions PDF service for P11D submissions

Users of HMRC’s interactive PDF service for submitting up to 150 P11D forms may be surprised to find that it’s now being decommissioned. If you’re one of the small employers who relied on the convenience of this Online End of Year Expenses and Benefits service, you might wonder what your options are now. It’s important to note that P11D returns are not going away completely – it’s just the way you report benefits in kind that’s going to be different from now on. This blog explains how P11D submissions are changing in 2022 and the alternative methods for reporting taxable benefits and expenses.

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07 July 2022

The Chancellor’s economy statement on support for rising energy prices

In late May 2022, the Chancellor of the Exchequer announced a new set of measures to counter soaring living costs. With consumer prices hitting a 40-year high of 9.1% inflation and the already astronomical energy price increases expected to rocket to £3,000 a year this autumn, the previous package – based on estimates that were much lower than real-life price rises – was not enough. For individuals, families, and businesses alike, the financial squeeze is getting tighter. So, what kind of support is now available, and what does it mean for the people of Britain and our economy?

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17 June 2022

Making Tax Digital update

We’ve covered the Making Tax Digital scheme before on the GBAC blog, but are you staying on top of the latest MTD updates that could affect your business? Tax automation using digital accounting systems and cloud accounting software is revolutionising the way businesses are run in the UK, so you don’t want to be left behind. While VAT-registered businesses have been keeping records and filing tax returns digitally since 2019, this became a requirement for all VAT returns in April 2022. Now, a few months on, all liable businesses should be running MTD-compliant software and following the new rules – with the risk of financial penalties if they don’t. What about other types of tax, though? Do self-employed people and landlords need to worry about MTD yet when it comes to filing self-assessment income tax returns? Read on for the latest information about Making Tax Digital in 2022.

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15 June 2022

More transparency for business disclosure rules

Disclosures are crucial for corporations who want to gain the trust of more business partners and customers. When companies aren’t transparent about their operations and responsibilities, the public is likely to lose confidence in them and takes their support elsewhere – as do investors. In the world of corporate finance, disclosure means releasing all the relevant information about a business to the public, whether the data is positive or negative. This includes all the facts and figures, procedures, dates, and developments that can influence investor or consumer decisions. Even smaller businesses may be legally required to publish certain details. After dozens of major companies collapsing has dented the trust of the British people in recent years, the UK government is planning to reinforce the UK disclosure regulations in an attempt to restore faith in the market. This blog explores what this means for small companies, and how you can prepare for the changes.

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13 June 2022

Confusion over zero-rated foods for VAT

Between July 2021 and March 2022, the government reduced VAT rates for tourism and hospitality businesses to help these industries recover from the impact of the COVID-19 pandemic. However, as of 1st April 2022, the standard VAT rate is back to normal. This means that if you’re selling food and drinks that aren’t zero-rated, you’ll have to pay 20% VAT on those products. Unfortunately, when it comes to baked goods and confectionery, it can be difficult to distinguish between zero-rated food and standard-rated food. Everyone knows the common argument over whether Jaffa Cakes count as a biscuit or a cake – which are both taxed differently. Complying with arbitrary food VAT regulations can feel like navigating a minefield. So, how do you stay on HMRC’s good side while saving your business money and making your customers happy? Let’s investigate which foods can be zero-rated and when you have to pay standard-rated VAT.

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