Karen Brown

The VAT registration threshold rose from £85,000 to £90,000 from 1 April 2024. The deregistration threshold increased from £83,000 to £88,000 from the same date. The changes in the thresholds change the trigger points for compulsory registration and optional deregistration. 👉 When must you register? You must register for VAT if your taxable turnover in the last 12 months exceeds the VAT registration threshold of £90,000 or if you expect your turnover to go over £90,000 in the next 30 days. 👉 Taxable turnover The key metric here is ‘taxable turnover’, which may differ from your actual turnover. Taxable turnover includes only those supplies within the scope of VAT, i.e. supplies that would be liable to VAT at the standard, reduced or zero rate if the business were registered for VAT. 👉 Registration deadline If your turnover exceeded £90,000 in the last 12 months, you must register within 30 days of the end of the month in which your turnover for the preceding 12 months reached £90,000. Feel free to contact us for further information about this subject: 01905921333 or drop us an email-: at [email protected] #vat #vatregistation #vatdeadline

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NEW IHT100 FORMS FOR INHERITANCE TAX Previously, for reportable transfers, an IHT100 form had to be submitted along with a separate 'event form' specific to the transfer in question. However, these forms and the associated IHT100WS worksheet have now been discontinued and replaced by standalone event forms tailored to the particular chargeable event being reported. Going forward, only the relevant IHT100 event form and any necessary supplementary schedules (e.g forms D31 to D40) will need to be submitted. Additionally, a new IHT100h form has been introduced to report assets leaving an 18-25 trust. The current list of IHT100 forms is as follows: IHT100a: Gift or other transfers of value in a trust. IHT100b: End of a QIIP. IHT100b: End of a QIIP due to death. IHT100c: Exit charge on assets in a trust. IHT100d: IHT on the 10-year anniversary of a trust. IHT100e: Charges on special trusts. IHT100f: Ending of a conditional exemption. IHT100h: Assets previously held in an '18 to 25' trust. These forms are definitely not DIY so reach out if you'd like my support. ASWATAX #inheritancetax #hmrc

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Join the link below to understand how the Budget may affect you!

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Question for the R&D tax relief community. Last week at Accountex, I was explaining how our tax calculator can help with the various R&D tax relief rates and the merger scheme when someone said, "I think the government's long-term goal is to get rid of the R&D scheme." I paused... Naturally, I asked what made them feel that way, pointing out that it couldn't just disappear overnight? They replied, "they will gradually reduce it until it goes to zero." What do you think? Surely the UK government won't remove the incentive that so many other countries offer, especially in the EU? #researchanddevelopmenttaxrelief #randd #innovation #randdtaxrelief

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After months of anticipation, the Government has finally issued a detailed VAT technical note and draft legislation, regarding the proposed changes to the VAT status of private schools. This significant update initiates a seven-week consultation period, allowing stakeholders to provide their comments and insights. Read more here... https://sowo.kr/x0hCHFIM #VAT #PrivateSchools #UKGovernment #Updates

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Today’s spotlight term from our TaxAssist Accountants Glossary is ‘Directors’ Loan Account’ 📚 https://lnkd.in/emr4iPnX

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What does a Labour government mean for business owners looking to sell their business? ➡️Will there be potential capital gains tax changes? 🔸️Labour have not ruled out changing capital gains tax (CGT). This could include: 🔸️An increase in CGT rates to reduce the difference between current income tax and CGT rates. 🔸️Changes to business asset disposal relief (BADR) (reduced 10% tax rate) on £1m of lifetime eligible disposals of shares and business assets. ➡️When will the changes take place? 🔸️The first Labour Budget is not expected until late September / October. 🔸️Any tax changes could take place from Budget day or April 2025. ➡️Clearly any tax changes proposed would need to be balanced against ensuring the UK economy continues to grow, of which incentiving business owners / investment and encouraging innovation plays a significant role. ➡️Whilst there is no certainty as to what may happen, for those already looking to sell, expediting plans could potentially lead to a disposal under 'current' rules before any CGT changes take place. See how Crowe UK can advise you and guide you through the process of selling or purchasing a business.

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***Not another budget post??!**** We're having a lot of conversations with clients post budget - as expected, there was mainly neutral to bad news for business owners (mainly on the NI/IHT changes) but a tax hit of sorts was expected in reality. The Advisory Group UK Limited team has now provided clarity to business owners who are affected by the NI/NMW changes by calculating any impact and are now focussing on helping business owners plan to address the changes. Some examples of how business owners are reacting to the budget: - Price increases to customers to meet NI/NMW hit - Investing in new kit to become more efficient - Making their teams more efficient - technology, KPI monitoring, development, etc (and rewarding them) - Adopting simple business planning tools such as the 1-3-5 approach from Pete Wilkinson - Getting Management buyouts, disposals, acquisitions back on track now everyone is clear on CGT changes and timing - Creation of holding companies and Freezer/Growth shares to address IHT changes I'm never going to suggest getting up at 5am for an ice bath but I do feel inspired by the reaction of businesses owners in not dwelling on changes they can't control and instead looking at ways to plan for them. #notanotherbudgetpost #icebaths #tax

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𝐓𝐚𝐱 𝐛𝐫𝐞𝐚𝐤𝐬 𝐟𝐨𝐫 𝐰𝐨𝐫𝐤-𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐭𝐫𝐚𝐢𝐧𝐢𝐧𝐠 Training your employees well is generally good for your business but there are tax and NI breaks that can sweeten the pot. What are they and how can you qualify for them? ✅Exemption for learning or training Tucked away in the dusty pages of the tax legislation is an exemption which says that “No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.” HMRC gives the term scholarship a wide meaning. It has long accepted the exemption covers payments by an employer for an employee’s training-related costs where they meet the conditions of the exemption. The payments are only exempt if they are for the costs of the employee’s training/education. Payments that are really a reward for employment with your business are taxable as earnings, i.e. they are treated as salary for tax and NI purposes. Because a scholarship payment is not earnings there’s no liability to NI contributions for employers or employees. ✅Purpose of payment The scholarship payments can be used to cover accommodation, living costs, etc. that are incurred by the employee because of their attendance at college etc., as well as tuition fees. A fairly ancient, but still relevant, HMRC statement sets a limit on the amount which can be paid before it scrutinises the arrangement. This prevents employers paying disproportionate amounts to an employee to compensate for low earnings while working for the employer, say in between terms. ✅Tax free HMRC’s statement says that as an employer you can pay an employee up to £15,480 tax free for periods where they are undergoing training at an “educational establishment”, e.g. college, university or other public educational institution. The £15,480 can be reimbursed tax and NI free to your employee or you can pay the expenses on their behalf. If you pay more than the limit it might still be exempt but HMRC may make enquiries into how the level of payment was arrived at. If it decides it’s excessive the whole amount may be taxable. ✅Conditions of the exemption The exemption applies only where the: training/education course is for a period of at least one year employee attends the course for at least 20 weeks during each academic year that the training lasts, i.e. from 1 September to the following 31 August. There’s nothing in the rules of the exemption which prevents it from applying to payments made to a member of your family. ✅Tax deductible? The scholarship payment is a tax-deductible expense from your profits as long as it’s wholly and exclusively for the purpose of the business. To back this up, using HMRC’s own words, “the disallowance of expenditure by an employer on staff training and development will be extremely unusual indeed”. #TRAINGING #TAXDEDUCTIBLE

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The Government recently announced a 50% increase in the UK small and medium-sized enterprises company thresholds for turnover and gross assets, which consequently affects audit requirements. Read more here... https://sowo.kr/WSMq9083 #Audit #AuditThreshold #SMEs #BusinessSupport #UKGOV

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Bean Counter to Boss - the Limited series provided by the ACCA features James Goulsbra ACCA and myself, where we talk the good, the bad and damn right fabulous decision we made to start our own practices, with the support of ACCA. Find the series now on Apple, Spotify and Podomatic 📣 #beancountertoboss #startingyourpractice #startingapractice

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Check out the latest blog on Edwards Chartered Accountants website about the benefits of working with one of our specialist tax advisers #taxadvice #tax #taxplanning

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As HMRC continues with Making Tax Digital, this 2025 change (it it comes to pass) would appear to be another stepping stone towards real time reporting by individuals of information about income derived from trading sources....

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Did you know that one of the key charitable objectives for The Association of Taxation Technicians is to advance public education in relation to tax? The amazing technical team have produced some brilliant videos. Following the end of the tax year employees will start to receive Form P60 from their employers. See ATT's video on How to Read a Form P60: https://lnkd.in/gRTH6NK8 #tax #taxationtechnician #P60 #employmenttax

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