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HMRC Reforms to VAT Return Late Submissions and Payments

All VAT-registered businesses need to be aware of how HMRC has changed how it deals with late returns and payments – in a move widely perceived as positive.Although late VAT returns and overdue payments related to periods before 1st January 2023 will still be handled according to the previous system, all subsequent returns will be addressed differently.Of course, the priority should always be to remain on time and compliant with all tax matters, and errors or corrections to returns the tax off...

Your Spring Statement 2023 Round-Up

The much-anticipated Spring Budget was delivered today, and as expected, it was based on economic growth without any major surprises.However, there was welcome news for taxpayers, businesses and savers, with changes to pension allowances, childcare support and an extension to the Energy Support Scheme, alongside upbeat announcements about the future of the UK economy.SAS Accounting has summarised the main areas of reform and the most important changes that might affect your plans, tax obligation...

HMRC Set to Challenge the Self-Employed Status of Associate Dentists

Over the last few months, we've reported several sectors falling under HMRC scrutiny. The next target looks to be associate dentists, causing potential disruption for practices and professional clinics.Conventionally, HMRC considers associate dentists self-employed, although this has been a somewhat informal arrangement. However, this system is based on a standard associate dentist agreement approved by bodies such as the Dental Practitioners Association and the British Dental Association.From t...

Tax Changes to Be Aware of From April 2023

Over the last few months there have been multiple changes related to various taxes, with reversals and revisions that have made it difficult for many businesses to understand how their tax obligations will change, and what that means for the new tax period from April.In this article, we run through each of the major reforms to ensure you have up to date information to help with budgeting, tax planning and decision-making....

Preparing for the 2023 Financial Year Ahead

As we settle back into our routines following the festive break, there are several key factors that businesses need to be aware of and prepared for in 2023.While we detailed the headline announcements from the Autumn budget back in November, there have been further announcements and changes in the interim, which we’ll summarise here as a checklist to ensure you are up to speed....

Key Responsibilities of Limited Company Directors

Incorporating your business as a limited company or being appointed as a director for the first time is an exciting opportunity – but there are various fiduciary responsibilities and legal requirements you need to adhere to. Much of the legislation is included within The Companies Act 2006, which sets out your duties around things such as: Participating in board meetingsEnsuring the company meets statutory obligationsManaging company affairs on behalf of the shareholders For many small busines...

HMRC Investigating Landlords Through Data Analysis from Tenancy Deposit Schemes

In our latest round-up of HMRC tax audits and investigations, landlords have been under the spotlight, with the tax office examining data to try and identify potential instances of under-declared income or capital gains. HMRC has been leveraging access to data and records over the last few months, aiming to recoup taxation income to address governmental targets and crack down on possible sources of untaxed income or profits. We reported recently that taxi drivers, particularly self-employed ride...

Autumn Budget Update

The delayed autumn budget has been the topic of much speculation over the past few weeks – and although we expected many of the announcements, we now have clarity over the changes being made and when they will take effect. Chancellor Jeremy Hunt worked through a series of statements affecting everything from payroll costs to public services and dividend income. In this guide we summarise all the major announcements and provide a brief overview of how these may impact your finances or business....

Recap on 2022-23 Statutory Pay Rates for Employers

With the recent campaigns to improve statutory parental leave, we thought it would be timely to publish a reminder about the current pay rates and mandatory contributions employers must make when their staff are unable to work. Today we'll look at the following: Statutory Maternity Pay (SMP)Shared Parental Leave (SPL)Statutory Paternity Pay (SPP)Statutory Sick Pay (SSP) If in any doubt, please get in touch with SAS Accounting Services as early as possible – our experienced payroll management t...

Latest News on UK Tax Cuts, U-Turns and Support for Businesses

While we were expecting to wait patiently for 31st October to hear more detail about the government's plans for changes to tax regimes and allowances, the political world entered a further period of turmoil - culminating in several U-turns. Reading the headlines and trying to determine which changes affect you and your business is challenging, so we have collated this article to clarify which amendments remain valid, which have been scrapped, and what we are still to receive clarity on. Our advi...

Limited Company Checklist for Hiring Your First Employee

Hiring a staff member for the first time is an exciting chapter in company progress, but it comes with several responsibilities and requirements. In this checklist, SAS Accounting runs through the steps one at a time, helping you ensure you are prepared for everything from running payroll to complying with employment laws....

HMRC Targets Taxi Drivers in Latest Tax Investigation

It's no secret that HMRC has been clamping down on income tax declarations and late payments to recoup the huge amounts of government spending over the last few years. We reported way back in December 2010 that HMRC was back in action, refocusing on recovering unpaid taxes and scrutinising potentially incorrect declarations. The latest group to catch the tax office's eye is taxi drivers, particularly where more and more drivers are becoming self-employed workers and declaring earnings made throu...

What to Do If You're Struggling to Pay Your Bounce Back Loan

Around 1.56 million UK businesses applied to the Bounce Back Loan Scheme (BBLS), one of several government measures to support companies struggling to remain viable during the pandemic. Loans were available up to £50,000 without a personal guarantee and with no repayment required for the first year - the government paid the interest for the initial 12-month period. While the initiative proved successful and prevented numerous insolvencies, many businesses have found that trade hasn't recovered ...

What Does Inflation Mean for UK Businesses?

Inflation reports are difficult to avoid in the current economic climate, and millions of businesses are concerned about what it may mean. Today, SAS Accounting explains the basics behind inflation, the likely impacts on commerce, and how you can prepare for the months ahead!...

What Are the Tax Efficiencies of Swapping to an Electric Car?

Electric cars are becoming increasingly popular, with soaring fuel prices and the growing availability of charging stations - but they may also be advantageous from a cost perspective, particularly for businesses. Hybrids and fully electric vehicles tend to be slightly more expensive than conventional fuel-powered cars, but favourable tax treatments may offset that expense. Along with purchase incentives for private buyers (available on new electric cars), organisations that offer their staff co...

Cash Flow vs Profit: Why Both Are Essential for Business Money Management

While most business owners and self-employed professionals know that cash flow and profit are two (very) different things, there is often an assumption that if one is fine, so is the other. Unfortunately, this misconception can be a core driver in insolvency, where a company appears profitable but doesn't have the requisite working capital to meet its obligations. In this guide, SAS Accounting clarifies how cash flow and profit differ, why both are equally important, and how to manage cash flow ...

Advice for Businesses Coping With Debt

Every business in every sector may have periods where they experience cash flow challenges, loss-making quarters, or difficult trading seasons - but things can become extremely hard to balance when your organisation is coping with debt. SAS Accounting is not an insolvency practitioner, but we support numerous local companies and understand the complexity and associated stress of handling liabilities. This guide includes a list of guidelines and potential solutions to run through the range of pra...

Could Your Business Claim the 130% Capital Allowance Super-Deduction?

The SAS Accounting team regularly highlights tax schemes and allowances that seem to fly beneath the radar - and the super-deduction is one of the most favourable (yet under-utilised) tax incentives ever offered. As part of the drive to boost economic growth, from 1st April 2021, businesses can claim a capital allowance deduction of 130% against investments in plant and machinery. That means every £1 of investment receives a £0.25 government bonus, although the scheme is only valid for two yea...

Your April 2022 Tax Year-End Business Checklist

We've bumped and bounced our way to the end of another tax year - and getting ahead of your administration and accountancy tasks is a great way to start the new tax period as you mean to go on! The SAS Accounting team is always on hand to help and appreciate that it can be an overwhelming challenge if you're dealing with payroll returns, issuing P60s and filing self-assessment documents all at once. Our guide below lists all the steps you need to tick off your year-end tax list, whether that coi...

Calculating the Optimal 2022/23 Director's Salary

Although we've mentioned this briefly in our guide to Preparing for the 2022 Tax Year, we've created this more detailed post to explain how the ideal director's salary is calculated for the 2022/23 tax year. In the year ahead, the optimal payroll structure for company directors with the greatest tax efficiency is £11,908 per year, £992 per month or £229 a week. This figure was slightly different in the original SAS Accounting article but has been adjusted because of the changes anno...

Preparing for the 2022 Tax Year: Wage Increases, National Insurance & Balancing Director's Pay Structures

We're just a couple of short weeks away from the start of the 2022/23-tax year, and there are a fair few changes to be mindful of if you're planning your payroll or cash flow for the months ahead. SAS Accounting has collated a list of the enquiries we're receiving and wanted to address those key questions, centring on: National Minimum Wage and National Living Wage rates.Amendments to employer's statutory payments.Pinpointing the ideal director's salary rate for this tax year. With frozen income...

Making the Most of the UK Marriage Allowance

The news may be dominated by rising fuel, energy and cost of living prices, but there are several ways to streamline your tax liabilities and claim allowances to soften the blow. One under-utilised option is the Marriage Allowance, open to either married couples or civil partners, with a limit equal to 10% of your Personal Allowance - so £1,260 for the 2021/22 tax year. Today we'll run through how the allowance works and why it could save you up to £1,220 before we hit the end of the current t...

The Benefits of Cloud Accounting for Busy Businesses & Remote Working Teams

Although it seems (dare we say it!) that most UK business sectors are slowly returning to normal, we're also now accustomed to a far greater prevalence of remote working. Besides video conferencing and digital meetings, bookkeeping becomes somewhat trickier for fast-paced businesses when there isn't a dedicated accounts team member in the office every day. SAS Accounting has long advocated for cloud accounting for several reasons - not least that it makes admin tasks faster, more secure, and all...

The Countdown to MTD for VAT: Are You Ready?

While Making Tax Digital (MTD) has been postponed for income tax submissions, the 1st April 2022 deadline still applies for businesses registered for VAT. The change means that even businesses with turnover beneath the registration point (£85,000) need to file according to the digital tax legislation. This regulation has been compulsory for companies over the threshold since 2019. SAS Accounting has published a Making Tax Digital Checklist previously. Still, given the upcoming deadline, we thou...

HMRC Announces Greater Flexibility in 2020/21 Tax Returns

While self-assessment tax returns for the 2020/21 tax year remain due by 31st January 2022, HMRC has announced a series of measures to try and relieve some of the strain on businesses, which continue to be impacted by the pandemic. Although submission and payment due dates haven't changed, there is greater leniency for late payments, which may support thousands of self-employed businesses. However, the caveat is that while late payment penalties may not be payable, interest certainly is. If you ...