June Newsletter
June News
The employer allowance has increased from £4000-£5000 for the 2022/2023 tax year. This is claimed as part of your monthly payroll and is deducted from the employer portion of the National Insurance contribution if the company qualifies.
If we do your monthly payroll, then we have activated this allowance if this allowance is applicable, but if you are unsure, please don’t hesitate to ask us. This allowance is on the first £5000, so later in the year when the allowance is used up, your monthly PAYE contributions will increase.
I would also like to remind our lovely clients that the following expenses are deductible in your self-assessment if you are working from home:
Heating
Electricity
Council tax
Mortgage interest or rent
Internet and telephone use
Only the portion that relates to the area that you are using to work from home. Please ask us for more information on this.
Help to Grow: Digital – UK
We have been made aware of the following scheme and would encourage business owners to investigate and find out more from the website – Help to Grow.
At present, Quickbooks, Sage and Crunch are included in the scheme. Xero accounting is not included in this scheme.
Businesses can receive 50% discounts on certain software, but as ever, there are strict requirements so please read the guide carefully.
Super Investment Deduction and Annual Investment Allowance
To spur business investment, the super-deduction allows companies to cut their tax bill by 25 pence for every £1 they invest in any qualifying machinery and equipment. This can include the purchase of computers, most commercial vehicles, and office furniture.
The temporary £1 million limit for the Annual Investment Allowance has also been extended to the end of March 2023. The Annual Investment Allowance allows businesses to spend up to £1 million on qualifying business equipment and deduct in-year its full cost before they calculate their taxable profits.
Both tax benefits are available until the end of March 2023 if your business incurs qualifying expenditure before then.
Government Gateway Account for Tax Affairs
Do you have a government gateway account for your own personal tax affairs and/or your business?
If not, I would encourage all our clients to get an account and request access to all their tax profiles. This will give you much better oversight of your tax affairs, and you can plan to ensure that your taxes are paid on time.
It can also save you from having to phone HMRC and spend a lot of time on the phone, when you could have resolved it quickly and easily through your online account.
Creating a Government Gateway account can take time as it involves good old-fashioned snail-mail, so start this process sooner rather than later.
Making Tax Digital (MTD) for Landlords
Written by Roulon du Toit
After the success of Making Tax Digital (MTD) for VAT, HMRC is expanding the project as part of its drive to become one the most digitally advanced tax administrations in the world.
Landlords must ensure that they are registered for MTD for Income Tax before 6 April 2023.
Who will be affected by MTD?
Landlords with a taxable income of more than £10,000 per year. This will include rent from both furnished holiday flats and rental properties. Landlords should also include taxable income generated from self-employment activities.
Landlords who are registered for self-assessment or even registered for MTD for VAT will not automatically be transferred across to MTD for Income Tax.