Self-Assessments: filing deadline extended, but late payment fine remains

In response to the disruption caused by the Covid 19 pandemic, HMRC have extended the filing deadline for online self-assessment tax returns.

If you’re not able to file by 31st January, you have another month to get your return submitted.

Late filing penalties won’t be applied until after 28th February 2022. However, HMRC are still expecting payment, even without a filed return. You’ll be charged late payment interest if you don’t pay your tax bill in full by 31st January.

The difference between tax avoidance and tax evasion

As the famous saying goes, there are only 2 things that are certain in life, and one of those is taxes.

What is a Director’s loan account and what are the tax implications?

Directors can borrow money from their business as long as it is in line with the company’s articles of association, the 2006 Companies Act and - for large loans - approved by a shareholder’s vote.

However, the implications of taking out a Director’s loan can be complicated, especially if borrowed money isn’t repaid promptly.

The New Super Deduction Explained

What is the super deduction?

Businesses can claim 130% first year relief on qualifying plant and machinery bought between 1st April 2021 and 31st March 2023. Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p. The government announced this as part of the 2021 Budget in March, in the hope that the scheme will encourage business investment and stimulate economic growth. The super deduction scheme is only available to Limited Companies. Unfortunately sole traders cannot benefit. To give an example of the available savings, if you spend £100,000, the corporation tax deduction will be £130,000. You will save 19% on £130,000, which is £24,700.

Guide to Tax Relief for Festive Gifts and Christmas Parties

‘Tis the season of giving! We’ve put together this handy guide to explain what tax relief you can receive when you gift employees, clients and charities this festive season.

You may want to thank your employees for their hard work, throw a virtual staff party or give a gift to a client.

It’s important to understand what can and cannot be claimed through the expenses of your Limited company, so as not to overspend and potentially avoid all tax relief.

What taxes do I need to pay and when are they due?

Paying taxes is no one’s idea of fun, but they’re a part of life that can’t be avoided. There are even more taxes to consider when you’re a business owner. This article will explain what the most common taxes are, how they’re worked out and when they’re due. This will give you the knowledge to better manage your cash flow and save for tax payments.

National Insurance & dividend tax rise
Editor | 8 September 2021
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The Government hopes the tax rises will tackle the current backlog in the NHS, and contribute to wider social care, including disease prevention and the cost of care homes.
April 2022 will see an increase in National Insurance contributions for employers, employees and the self-employed.

What is a HMRC compliance check?

Fretting about an HMRC compliance check? This mini guide will tell you everything you need to know.

How small firms should respond to the Chancellor’s new budget

Last week, the Chancellor delivered one of the most significant budgets in recent memory. Before the budget was released, the Government were keen to stress that some tax rises would be needed to help pay for the coronavirus response.

Many small firms will avoid one of the biggest tax hikes, but how should self-employed people, limited company directors and other small business owners be looking to respond to the budget? We’ll look at the most important changes and how they could affect your business below.

5 small business accounting mistakes to avoid if you want to succeed

Mixing personal and business bank accounts: You pop to the shops for office stationery and end up buying a couple of bits for home whilst you are there.
Directors of small businesses are often guilty of mixing their personal finances and business accounts. If you have a limited company, it’s actually a legal requirement to have a separate account, but more than 25% of small businesses don’t have a separate business bank account and this can make it really difficult to track exactly how much money is coming in and out of the business and could result in taxable expenses being omitted or incorrectly categorized. It can also cause issues when applying for a business loan, as lenders will need a detailed and accurate view of the business accounts. If you are someone who blurs the boundaries between personal and business money, break the habit! Get a separate business bank account and you will save hours’ worth of headaches down the line.

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