Bennett Verby Accountants and Business Advisers

01/04/2022

CONSIDER A SALARY SACRIFICE SCHEME

Another way that you could avoid the personal allowance trap and also reduce income tax and national insurance would be to agree with your employer to sacrifice some of your salaries in exchange for a tax free, or low tax benefits in kind. Common examples would be additional pension contributions or providing an electric company car in exchange for a lower salary.

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Telephone: 0161 476 9000
Email: [email protected]

30/03/2022

Save the Dates...

DIARY OF MAIN TAX EVENTS - MARCH / APRIL 2022 🗓

Date What’s Due 👇 👇

01/03 Corporation tax payment for year to 31/5/21 (unless quarterly instalments apply)

19/03 PAYE & NIC deductions, and CIS return and tax, for month to 5/03/22 (due 22/03 if you pay electronically)

01/04 Corporation tax payment for year to 30/6/22 (unless quarterly instalments apply)

05/04 End of 2021/22 and start of the 2022/23 tax year

19/04 PAYE & NIC deductions and CIS return and tax, for month to 5/04/22 (due 22/04 if you pay electronically)

28/03/2022

2022/23 NATIONAL INSURANCE BANDS

Unless the Chancellor makes an announcement to the contrary on 23 March, which is very unlikely, the rates of National Insurance Contributions for workers and employers increase by 1.25% from 6 April 2022. This is to provide extra funding for health and social care and will become a separate Levy from 2023/24.

The starting thresholds for employee and employer national insurance contributions (NICs) have also been increased. Employees will be liable to 13.25% NICs between £190 and £967 a week (£50,270 a year). Employer contributions at 15.05% will start at £175 a week.

For 2022/23 the self-employed will pay 10.25% Class 4 NICs on profits between £9,880 and £50,270. Employees and the self-employed will pay 3.25% on earnings or profits in excess of £50,270 from 6 April 2022.

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Latest news and blog articles for employers and businesses from Bennett Verby. Subscribe to our newsletter for practice news, HMRC updates and tax tips.

27/03/2022

BUY NEW EQUIPMENT BEFORE 6 APRIL? 🖥

Your business year-endBUY NEW EQUIPMENT BEFORE 6 APRIL? 🖥

Your business year end, not 5 April, is relevant for capital allowances purposes.

If, however, you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA).

The AIA provides a 100% tax write off for new and second-hand equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars but there is a special 100% tax relief if you buy a new zero-emissions motor car.

If you are running a limited company, remember that new plant and equipment currently qualifies for a 130% tax deduction.

Keep up to date: https://loom.ly/gNArk4o

Latest news and blog articles for employers and businesses from Bennett Verby. Subscribe to our newsletter for practice news, HMRC updates and tax tips.

25/03/2022

ADVISORY FUEL RATE FOR COMPANY CARS 🚙

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 March 2022. Where there has been a change the previous rate is shown in brackets.

Engine Size Petrol Diesel LPG
1400cc or less. 13p 8p (9p)

🚗 1600cc or less 11p
🚗 1401cc to 2000cc 15p 10p
🚗 1601 to 2000cc 13p
🚗 Over 2000cc 22p 16p 15p

Find out more:

Telephone: 0161 476 9000
Email: [email protected]

23/03/2022

MISSING OUT ON HELP WITH CHILDCARE COSTS? 👧 🧒

With many parents returning to work following the pandemic, they should be encouraged to set up a tax-free childcare account to help with their childcare costs. For every £8 paid into an online account, the government will add an extra £2, up to £2,000 per child per year and that money must be used to pay eligible childcare costs.

Find out more:

Telephone: 0161 476 9000
Email: [email protected]

21/03/2022

CHANGES TO ACCOUNTING FOR VAT ON IMPORTS 👇👇

HMRC have recently updated their guidance for VAT registered importers. These traders must account for postponed import VAT on their VAT returns for the accounting period which covers the date they imported the goods. The normal rules apply for what VAT can be reclaimed as input tax and the trader’s monthly statement will contain the information to support their claim.

Find out more:

Telephone: 0161 476 9000
Email: [email protected]

20/03/2022

DON’T LOSE YOUR 2021/22 PERSONAL ALLOWANCE 💴

For every £2 that your adjusted net income exceeds £100,000, DON’T LOSE YOUR 2021/22 PERSONAL ALLOWANCE

For every £2 that your adjusted net income exceeds £100,000 the £12,570 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%. The restriction applies between £100,000 and £125,140 adjusted net income.

Find out more: -

Telephone: 0161 476 9000
Email: [email protected]

18/03/2022

VAT RATES FOR THE HOSPITALITY SECTOR ARE DUE TO INCREASE FROM 1 APRIL

Early in the COVID-19 pandemic, the Chancellor reduced the rates of VAT for the leisure and hospitality sector to just 5%. That reduced rate applied from 15 July 2020 until 30 September 2021 when the rate was increased to the current 12.5%. However, the rate is scheduled to revert to the normal 20% rate from 1 April 2022.

Find out more:-

Telephone: 0161 476 9000
Email: [email protected]

22/02/2022

4 Reasons to Switch to Cloud-Based Accounting Software Today

The cloud makes everything easier. From storing images online to accessing data anywhere, anytime, it’s highly likely that you use the cloud for some services, directly or indirectly, for your personal or business needs. At Bennett Verby, we believe that as a business owner or manager, there are plenty of reasons to switch to cloud-based accounting software. In this blog, we discuss four benefits of integrating cloud-based accounting software in your business today.

Find out more: https://loom.ly/i82CkXE

A boutique accountancy firm advising entrepreneurs and businesses on how to maximise profits and minimise tax.

16/02/2022

HMRC’s Guidance and Next Steps on Crypto 📖

If you’re currently investing in cryptocurrencies or considering it, take note that the HMRC continues to evolve its guidance on the tax treatment of these digital assets. This guidance will vary depending on your trading structure. Whether you’re an individual investor, sole trader, limited corporation or institutional investor, please reach out to us to obtain the most up-to-date facts and guidance on the tax treatment of cryptocurrencies. 💸💸💸

Here at Bennett Verby work closely with entrepreneurs and businesses on a daily basis, helping them to navigate the complex world of business, tax, strategy and accounting.

Get in touch:
Telephone: 0161 476 9000
Email: [email protected]

11/02/2022

The tax hike, the ins and outs. 📖

It is likely to have an impact on hiring, as SMEs 🗃️ will be expected to pay more to recruit a potential hire. This will add to the existing investment costs associated with recruitment and talent retention. As such, with the introduction of the higher NI tax, some businesses may find it difficult to make ends meet. 〽️

To plan ahead, be proactive and take the time to work out the increase in costs to your business. For example, if your business hires employees, estimate the tax increase. Use these estimates to plan and budget ahead. 📈

Find out more: https://loom.ly/g9_GlSM

Telephone: 0161 476 9000
Email: [email protected]