Rustrick Accountants Limited

Rustrick Accountants Limited An expanding firm of chartered accountants looking to help more business owners achieve their dreams

From June 2025, HMRC will begin issuing simple assessments. If you haven’t paid enough tax on your income and you do not...
27/06/2025

From June 2025, HMRC will begin issuing simple assessments. If you haven’t paid enough tax on your income and you do not need to complete a self-assessment tax return or do not have income that can be taxed through PAYE, they will be in contact with you.

They usually send you a calculation but beware they usually use estimations! So always check what they have included in your simple assessment! If you think it is wrong, you have 60 days to appeal, so give us a call as soon as possible on 01622 738165 and we can check it for you.

From April 2025, the identity verification service started on a voluntary basis with all new appointments being subjecte...
26/06/2025

From April 2025, the identity verification service started on a voluntary basis with all new appointments being subjected to ID checks from Autumn 2025.

All existing directors must also have their identities verified within twelve months. It’s best to start doing that now as there will be a backlog of work come Autumn 2025!

All directors (and equivalent) can voluntarily start the identity checks now, including limited liability partners and PSCs. When it becomes compulsory, anyone filing on the behalf of a company, including secretaries will also have to have their identities verified.

You can verify your identity online via the GOV.UK One Login service, in person at the Post Office or by using an Authorised Corporate Service Provider (but they will charge!). You will need a Passport or Driving Licence and in return Companies House will give you a unique personal code which will be required every time you make a filing.

Keep an eye out for any scammers that may be in contact with you over the next few weeks pretending to be Companies House! If you are concerned, or want more information, give the team a call on 01622738165 and they will be able to help you out.

Recently, HMRC have stopped giving you your unique taxpayer reference (UTR) over the phone. Instead, you can find it on ...
25/06/2025

Recently, HMRC have stopped giving you your unique taxpayer reference (UTR) over the phone.

Instead, you can find it on the HMRC app or in your personal tax account. If you have not got one yet, give Rustrick Accountants a call and we can walk you through the steps.

If you still can’t find it, HMRC will provide it to you via post once you have called them up and answered some questions. Give us a call on 01622 738165 and we can get it sorted for you today.

Have you bought goods or services for your business that you also use for private purposes? Did you know that businesses...
19/06/2025

Have you bought goods or services for your business that you also use for private purposes? Did you know that businesses can reclaim VAT on purchases, even if there is a non-business aspect? How much can be claimed depends on the type of goods or services and the proportion of business use!

If you buy goods such as stationery supplies and other consumables, you should limit the amount of VAT you reclaim by the amount of private use. This means that if you buy a stack of printer paper and use 20% of it for personal use, you should limit the amount of VAT you reclaim to 80%.

If you have purchased an item you know you will use for private purposes over time or you didn’t realise you will use for private purposes, you should reclaim all the VAT and then account for the private proportion in your VAT return. A common example of this is a mobile phone bill!

If the purchase is a capital asset that will be used many times (think car, van, computer, laptop!) your business can still reclaim the business use proportion. To do this you can either; reclaim all the VAT and treat the private use as a supply of services on which output VAT is accounted for in every subsequent VAT return, or you can just claim the expected business use proportion in your VAT return for the period in which you made the purchase.

Either method will be accepted by HMRC, but get in contact with us today on 01622 738165 and we can help you decide which method is best for you!

With the right tax planning, you can grow your tech start-up and avoid any expensive mistakes right here in the UK! Thin...
18/06/2025

With the right tax planning, you can grow your tech start-up and avoid any expensive mistakes right here in the UK!

Think about how you want to structure your business. Many of the tax relief strategies discussed will only be available with a limited company structure (you will also benefit from a lower tax rate in the future if you choose the limited company structure!).

Tip 1: Use SEIS and EIS to attract investment.

SEIS (Seed Enterprise Investment Scheme) offers any investors 50% Income Tax Relief on investments up to £200,000 per tax year, plus they will pay no Capital Gains Tax on SEIS shares (held for at least 3 years). EIS (Enterprise Investment Scheme) allows up to £5 million to be raised per year and offers 30% Income Tax Relief and CGT exemptions to any investors.

Tip 2: Claim Deduction on Equipment and Infrastructure.

If you invest in equipment or other business assets, you can deduct the cost from your taxable profits by claiming capital allowances. Remember even digital-services companies can still benefit! With AIA (Annual Investment Allowance) you can claim up to £1 million in qualifying expenditure on equipment (computers, servers, office chairs etc) each financial year.

Tip 3: Claim Research and Development Tax Relief

If your projects seek a technological or scientific advancement, enhance existing technologies or address or overcome technical challenges you will be eligible. You can claim relief on costs such as staff and subcontractors, software licences and utilities. The relief is either an enhancement to your company’s trading losses which is offset against future profits or as a repayable cash credit from HMRC.

Tip 4: Plan for VAT early

If you don’t plan for VAT early you may come across cash flow surprises, compliance issues or even penalties. You must register for VAT once your taxable turnover exceeds £90,000 within 30 days or in any rolling 12-month period. Choose either Standard VAT Accounting (20% VAT on most goods/services) or Cash Accounting Scheme (pay VAT when you receive payments).

Tip 5: Track Business Expenses

Track all your expenses to stay compliant with HMRC and reduces your Corporation Tax Liability. Every legitimate cost you claim lowers your taxable profit- leaving your business more cash. Remember you can claim software, subscriptions, office costs, hardware, professional services, travel and training (just to name a few!).

Give the team a call today on 01622 738165 and find out just how much we can save you and your start-up company today!

You can reduce your capital gains tax liability by using proceeds from the sale of one asset to reinvest in the purchase...
11/06/2025

You can reduce your capital gains tax liability by using proceeds from the sale of one asset to reinvest in the purchase of a new asset- this is called Rollover Relief.

To qualify for Rollover Relief, you have to get rid of an old asset (which was used only for trade purposes) and then get a new asset (that will only be used for trade purposes).

If you are a sole trader, you can use the new asset for a different trade but there must not be a gap longer than three years between these trades. Qualifying assets include buildings, land, plant and machinery used for your trade, but will not include shares and securities.

Rollover Relief can be claimed if the proceeds of the old asset are used to enhance the value of other trade assets immediately, or if you use the proceeds to acquire a further interest in another asset (that is already used for trading purposes).

You will get the full Rollover Relief if you reinvest all of the proceeds of your asset sales, if you only partially reinvest, then the relief will be proportionate.

If you reinvest in a depreciating asset (an asset with a predictable life of 60 years or less e.g. machinery) there will be special rules.

Any rolled-over gain from the depreciating asset is not deducted from the cost of the replacement asset, instead it is frozen until the replacement asset is no longer being used for trade purposes, or ten years from the acquisition of the depreciating asset.

The new asset must be acquired 12 months before the disposal of the old asset or three years after the disposal. A claim has to be made within four years after the end of the tax year when the disposal happened or the new asset was acquired.

Give us a call on 01622 738165 and we can help you decide if Rollover Relief is right for you!

A trivial benefit is something that costs the employer little, which they give to their employees as a perk of their job...
10/06/2025

A trivial benefit is something that costs the employer little, which they give to their employees as a perk of their job.

A perk counts as trivial and is exempt from income tax and NI as long as it costs the employer no more than £50 and meets other conditions. This £50 includes both the price of the item/service and all the related costs.

If a gift is shared by employees and you can’t work out the exact cost, you can use the average to determine if the exemption applies.

It would not be counted as trivial (even if it is less than £50) if it is part of a salary sacrifice, paid in cash or a voucher that can be converted to cash, part of the employee’s contractual earnings or if it is in recognition for services performed as part of employment duties.

The trivial benefits exemption exists to allow employers to reward employees tax and NI free and to reduce paperwork and admin for both employers and HMRC. So give us a call on 01622 738165 and let us help you today!

Interest rates have risen and the personal savings allowance (PSA), the amount on which 0% tax applies to savings income...
06/06/2025

Interest rates have risen and the personal savings allowance (PSA), the amount on which 0% tax applies to savings income, has frozen at £1,000 and £500 per tax year for basic rate and higher rates.

If in 2023/24 you received interest exceeding the PSA, you don’t normally submit a self-assessment tax return, you haven’t received a P800, you should contact HMRC now to notify them you may owe tax.

This also applies for 2024/25, but you have until 5th October 2025 to tell HMRC.

Should you be deducting tax and NI from your employees’ travel expenses? You must decide if job-related expenses are exe...
05/06/2025

Should you be deducting tax and NI from your employees’ travel expenses?

You must decide if job-related expenses are exempt from tax and NI contributions. If they are, the expense can be paid or reimbursed to an employee without reporting it to HMRC.

If it isn’t exempt, you must treat the payment as either earnings or a benefit in kind.

For a travel expense to be exempt, it must happen whilst the employee is doing their job or is visiting a location that isn’t their normal place of work for the purpose of performing their job.

If the employee’s journey is between their home and their permanent workplace, it is called ordinary commuting and if you pay the costs, they are taxable and liable to NI.

This can get a bit confusing, get in contact with us on 01622 738165 and we can help you decide what the best course of action is for you.

HMRC is now demanding that small companies and their owners will have to report all income; not just a single total figu...
03/06/2025

HMRC is now demanding that small companies and their owners will have to report all income; not just a single total figure for all dividend income.

If you receive dividends from a close company in your tax return for 2025/26, you must indicate whether you were a director of it at any point in the tax year and you must now provide the company’s full name and registration number.

You must also disclose details of the director’s highest percentage of share capital held in the year. Directors are not limited to just those registered at Companies House, it also includes shadow directors and if you control more than 20% of the company’s ordinary share capital.

From 6th April 2025, directors of close companies must make sure they are making detailed records of dividends, changes to the company’s shareholdings and the rights attaching to every class of issued shares. If these details aren’t accurate you may face a penalty of £60 for each error.

If you have alphabet shares or if your class rights/shareholdings have changed, give us a call on 01622 738165 as this could complicate things.

How is the Spring Statement going to affect you? If you are late paying your self-assessment tax, HMRC will charge penal...
02/06/2025

How is the Spring Statement going to affect you?

If you are late paying your self-assessment tax, HMRC will charge penalties that have doubled from 5% to 10% of the overdue tax.

They will also charge another 10% penalty for any tax still unpaid after 6 months from when it was due.

There will also be an increase in VAT penalties and anyone registered for Making Tax Digital for Income Tax Self-Assessment. The rates have risen from 2% to 3% for 15 days overdue and 4% to 10% after 31 days.

The government will carry out a review of ISAs. For now, there is an annual cap of £20,000 for adult cash,stocks and shares and lifetime ISAs remain for 2025/26. But there have been hints that while the £20,000 will continue, only £4,000 will be allowed for cash savings.

In terms of MTD ITSA for very small businesses (including landlords), there was an announcement that if your annual turnover exceeds £20,000 in 2026/27, you will have to register for MTD ITSA and start using it from 6th April 2028.

Any questions about what has been announced or how it could affect you and your business? Give us a call on 01622 738165 and we can answer any queries you may have.

The government wants to build over 1m new homes by 2029. They need land to do this and have decided to start to clean up...
30/05/2025

The government wants to build over 1m new homes by 2029. They need land to do this and have decided to start to clean up brownfield sites. But where does Land Remediation Relief (LRR) come into this?

At the moment, the government is deciding whether LRR should be continued, so if you do qualify- time could be of the essence!

LRR is a corporation tax (CT) deduction of 150% when a company cleans up contaminated land and buildings in which they have a major interest (freehold/leasehold interest of at least seven years).

The CT relief depends on whether the company holds the land as stock or a capital asset and which band of CT is applicable. Loss-making companies can only access a maximum tax credit of 24% of the LRR spend.

But watch out for the exclusions! Contamination due to living organisms, air or water does not qualify (apart from Japanese knotweed, radon and arsenic).

This means that any costs relating to drainage, mine shaft grouting and protection of land from soil, gases or flood waters is excluded. Any contributor to the contamination (including a connected party!) is also ineligible, this also includes any failure to act (even if the pollution was accidental!).

As long as the work either prevents or mitigates the effects of harm (this could be removal, containment or treatment of contamination) there is no “prescribed” method of how to do it.

However, only the additional costs incurred to carry out the remediation work will qualify for CT relief. Any costs must be borne by the company and not subsidised (i.e land was discounted due to the contamination).

LRR offers a maximum tax relief of 37.5% of the qualifying spend (including capital costs) but it must be submitted within two years of the accounting period end.

This is a tricky topic so give us a call on 01622 738165 to make sure it is done properly!

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3 Greystones Road
Maidstone
ME158PD

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