Bray Accountants No Comments

Budget Reports and Statements

Main items of interest to the majority of small businesses will be:

  • Personal allowances and national insurance rates, please view the tax data information page above.
  • Don’t forget the £1,000 a year in tax-free allowances for property or trading income available since April 2017.
  • The Corporation Tax rate is remaining at 19% until April 2023 with the proposal to increase to 25% for Profits over £250,000, Profits below £50,000 will remain taxed at 19%. A tapered rate will return for Profits between £50,000 and £250,000 to merge the two rates.
  • VAT registration limit to remain at £85,000 until April 2024 and the deregistration limit £83,000.
  • The rules for Class 2 NIC have changed, for the 2022/23 tax year you pay Class 2 NIC if your profits are above the Lower Profits Limit,(which is £11,908 in 2022/23). If your profits are below the Small Profits Threshold (£6,725 in 2022/23) then you can choose to pay Voluntary Class 2 NIC. If your profits from self-employment are between the Small Profits Threshold and the Lower Profits Limit then there is no Class 2 NIC to pay but you will be treated as making Class 2 NIC. This will mean you will be able to access entitlement to contributory benefits in the same way as if you had paid Class 2 NIC.
Bray Accountants No Comments

VAT Domestic Reverse Charge for Building and Construction Services

From 1st March 2021 supplies of Building and Construction services must operate under new Reverse Charge Regulations. The rules can be quite complicated so please contact us if you have any concerns or queries on how they will apply to you.

Bray Accountants No Comments

CIS Scheme

The CIS scheme contains many penalties and risks to Contractors. For more information on how the scheme works, click on the link below for HM Revenue Customs guidance but preferably please contact us for a more detailed explanation. Beware of H M Revenue interpretation on self employed status, it is not law and incorrect, there have been many tax cases on this issue in the last couple of years which detail the current law. Also, care must be taken to ensure gross payment status is not lost through late payments of tax.

Bray Accountants No Comments

Making Tax Digital

Those VAT registered businesses below the VAT threshold will now be required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns with Digital Links, thus joining the VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) who have been following the rules since 2019.