Shelby Wotherspoon ACCA

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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How we turned a final accounts meeting at Smith Hannah into a strategy meeting benefiting the client. 1) Expansion - Successful business looking to acquire another business. As the client has an existing holding company we spoke about the tax benefits of acquiring newco through holdco. We also looked at how we can assist the client with due diligence and analysis work. 2) Pension planning - We discussed the advantages of a pension. Also in relation to point 1 where the potential business being acquired had a commercial property we discussed acquiring via pension fund. We will also have pre year end meetings to determine if the client can make regular pension payments. 3) Property disposal - Client wanted to sell a low returning property which needed some refurb work. The potential tax on sale would have been circa 50k. Refurb costs would amount to circa 20k and would improve rental potential. The client decided on refurb costs instead. These are the conversations that add value and what clients appreciate.

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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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EOTs offer a compelling, tax-efficient exit route for business owners. Under current UK tax laws, selling a controlling stake in a company to an EOT can be free from CGT, providing substantial tax savings. Beyond the tax benefits, EOTs can ensure the business’s continuity, preserve its culture, and reward employees. We assist in structuring and implementing EOTs, ensuring compliance with legal requirements and alignment with the owner’s objectives. This process includes setting up the trust, transferring ownership, communicating the benefits to employees and tax clearance and correspondence with HMRC. To conclude this particular section: For many business owners, an EOT creates two significant tax breaks. First, the ‘headline act’. Shareholders selling their shares may do so free of capital gains tax. Second, once a company is owned by an EOT, it can pay annual bonuses to its employees free of income tax. To qualify for these tax breaks, two main conditions must be met. The trust must hold more than 50% of the shares in the company. Additionally, if employees receive any benefit from the trust, all employees must be included and on the same terms. ASWATAX #employeeownershiptrust

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🗣 Who do you know that might need to read the below? ------------------------------------- I’m Samuel Falana, and I primarily post about how a proactive approach to accounting & finance can give you a better understanding of your business. 🎯 My team and I work with business owners with at least 3 employees, mainly in the construction, hospitality and retail sectors To see more of my posts, visit my profile now and press the 🔔 #bar #restaurant #hotel #tax #cashflow 

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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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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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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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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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🚀 Outsourcing for UK Subsidiaries 🚀 For UK subsidiaries of overseas businesses, outsourcing can be a transformative strategy. At Cooper Parry, we’ve seen firsthand how outsourced accounting can revolutionise operations for companies of all sizes and sectors. 🌍 Bridging the Gap: Navigating the complexities of business, communication, and compliance between the UK and your head office can be daunting. Outsourcing ensures timely, meaningful management information, enhancing transparency and accountability. 📈 Freeing Up Leadership: Outsourcing lets your leadership team focus on market impact and growth. ✅ Meeting UK Requirements: A UK partner that can ensure compliance and tax efficiency with local regulations. ⚖️ Flexibility and Scalability: Outsourcing adapts to your business’s evolving needs, ensuring you only pay for what you use, avoiding unnecessary expenses. Curious about how outsourcing can benefit your UK sub? Check out Tanveer Mahtab-Ahmed’s full article. 📖 https://shorturl.at/Zp5ZB #Outsourcing #UKBusiness #uksub #Compliance #BusinessGrowth

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Tax Tip of the Week: Reduce Corporation Tax with Plant and Machinery Investments 💼🚗🔧 🌟 For UK businesses, investing in plant and machinery can reduce Corporation Tax liabilities through valuable tax allowances. Here’s how you can take advantage: 💼 Annual Investment Allowance (AIA) The AIA allows you to deduct the full cost of qualifying plant and machinery investments from your taxable profits, up to £1 million per year. Example: If your company purchases £50,000 worth of new machinery, you can deduct the entire £50,000 from your profits, reducing your taxable profits and thus lowering your Corporation Tax bill. If you’re in the 25% Corporation Tax bracket, this purchase could save you £12,500 in tax (25% of £50,000). 🌍 First-Year Allowance (FYA) The First-Year Allowance provides 100% tax relief on certain energy-efficient or low-emission items in the first year of purchase. This is beneficial if you’re investing in equipment with a lower environmental impact. Example: If you buy an eco-friendly delivery vehicle for £30,000, you can claim the full amount in the first year, reducing taxable profits. This could save you £7,500 in tax at a 25% rate. 📝 Key Takeaway Strategic investments in plant and machinery can offer substantial tax savings. By making the most of allowances like the AIA and FYA, you can reduce your Corporation Tax while enhancing your business operations. #TaxTips #CorporationTax #PlantAndMachinery #AnnualInvestmentAllowance #TaxRelief 💼🌟

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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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Read this article to discover whether you need to consider IR35 if you provide your services through your own limited company to an end client Read More: https://buff.ly/40fip1B #offpayrollworking #IR35 #Contractors #TaxLaws #Compliance #BusinessRegulations #Freelancers #IR35Reform #TaxAdvice #ContractorLife #SmallBusiness #TaxPlanning

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