Autumn Statement 2023

The Chancellor, Jeremy Hunt, presented his Autumn Statement on 22 November 2023, focussing on five areas: reducing debt, cutting tax and rewarding hard work, backing British business, building domestic and sustainable energy and delivering a world-class education. From a tax and National Insurance perspective, highlights included the abolition of Class 2 National Insurance and a reduction in the rate of both Class 4 and primary Class 1 National Insurance contributions. The Chancellor also extended the Veterans upper secondary National Insurance threshold. Other changes included freezing of the small business multiplier, maintaining the pension triple lock and making full expensing for companies permanent.

Key dates

From 6 January 2024, the main rate of primary Class 1 contributions payable by employees is to fall from 12% to 10%. From 6 April 2024, Class 2 National Insurance contributions, payable by the self-employed, are to be abolished and the main rate of Class 4 National Insurance is to be cut from 9% to 8%. This note outlines some of the key Autumn Statement announcements.

National Insurance contributions

The key giveaways were in the form of National Insurance rather than tax.

The National Insurance regime for the self-employed is to be simplified. From April 2024, Class 2 National Insurance contributions are to be abolished. These are flat rate contributions payable by the self-employed which provide entitlement to the state pension. They are payable at a rate of £3.45 per week for 2023/24 where profits exceed the lower profits threshold of £12,570, Self-employed earners whose profits are between the small profits threshold (£6,725 for 2023/24) and the lower profits threshold are treated as having paid Class 2 contributions at a zero rate. Self-employed earners with profits below the small profit’s threshold can pay Class 2 contributions voluntarily.

The self-employed also pay Class 4 contributions on their profits. From 6 April 2024, the main Class 4 rate (payable between the lower profit limit of £12,570 and the upper profit limit of £50,270) is to be cut from 9% to 8%.

Following the abolition of Class 2 contributions, self-employed earners with profits of at least £12,570 will continue to receive access to contributory benefits and build up entitlement to the state pension. Where earnings from self-employment are between £6,725 and £12,570, the self-employed earner will not pay National Insurance contributions but will continue to access contributory benefits and build up entitlement to the state pension through a National Insurance credit. Self-employed earners with profits of less than £6,725 per year will continue to be able to make voluntary contributions at the 2023/24 Class 2 rate of £3.45 per week.

Employees also benefit from a reduction in the primary Class 1 rate, payable on earnings between the primary threshold of £12,570 and the upper earnings limit of £50,270. This will fall from 12% to 10% with effect from 6 January 2023. There is no change to the secondary Class 1 rate payable by employers, which remains at 13.8%.

The upper secondary threshold for veterans, which applies to the first year of an armed forces veteran’s employment since leaving the armed services is extended for a further year so it will continue to apply for the 2024/25 tax year. Employers only pay Secondary Class 1 contributions to the extent that the veteran’s earnings exceed the threshold, set at £967 per week, £4,189 per month and £50,270 per year.

Making Tax Digital

The Government are to amend the design of Making Tax Digital (MTD) to:

  • simplify the requirements for taxpayers providing quarterly updates;
  • remove the end of period statement;
  • exempt some taxpayers, including those without a National Insurance number, from MTD; and
  • enable taxpayers within MTD to be represented by more than one agent.

They will keep the decision as to whether landlords and businesses with income below £30,000 should be brought within MTD under review.

National Living Wage

The National Living Wage is to be increased to £11.44 per hour from 1 April 2024 – an increase of 9.8% from its current level of £10.42 per hour. It is currently payable to workers aged 23 and above, but from 1 April 2024 will be payable to workers aged 21 and above.

State pension

The single tier state pension (available to those who reached state pension age on or after 6 April 2016) is to be increased by 8.5% in line with the full triple lock to £221.25 per week from April 2024.

Full expensing

Full expensing provides companies with a 100% first-year allowance for qualifying expenditure on new plant and machinery that would otherwise qualifying for writing down allowances at the main rate of 18%. Unlike the annual investment allowance, there is no limit on the amount of qualifying expenditure that can benefit from full expensing.

Full expensing was originally introduced for qualifying expenditure incurred in the three years to 31 March 2026. It is now to be made permanent. The Government are also to consult on possible changes to simplify the capital allowances legislation.

Pension reforms

The Government have announced a package of pension reforms which will allow individuals to move towards having one pension pot for life.

Research and Development

The research and development tax reliefs are to be reformed from April 2024. For accounting periods starting on or after that date, there will only be two schemes available – the merged research and development expenditure credit scheme and the SME intensive scheme. The threshold for R&D to be considered ‘intensive’ is to be reduced to 30% from 40%.

Business rates

The small business multiplier is to remain at its current level for 2024/25, but the standard multiplier will rise in line with inflation.

Businesses in the retail, hospitality and leisure industries will continue to benefit from the 75% business rates discount for a further year.

Visual effects industries

The Government are to provide additional tax relief for expenditure on visual effects and have launched a call for evidence to inform policy design.

Alcohol duties

Alcohol duties are to be frozen until 1 August 2024.

 

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/electric-vehicles-tax-breaks-2023-24/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.

Please call An Accounting Gem on 01473 744700 if you need help with any of the issues raised in this alert.

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Electric vehicles tax breaks – 2023-24

If you provide your employees with company cars or company vans, or if your employees use their own vehicles for work, you may wish to consider switching to electric vehicles to take advantage of some of the tax breaks that are on offer.

Although the tax charges for electric and low-emission cars are to rise from April 2025, employers and employees who make green choices will continue to pay less tax and Class 1A National Insurance than those who do not..

Company cars

If you provide an employee with a company car that is available for the employee’s private use, the employee is taxed on the resulting benefit.

The amount charged to tax depends, predominantly, on the list price of the car and the level of its CO2 emissions.

To encourage drivers to adopt low-emission cars, drivers of electric and low-emission cars pay less tax than those choosing higher-emission models.

Drivers of diesel cars not meeting the RDE2 emissions standard pay an additional supplement.

For 2022/23 to 2024/25 inclusive, the amount that is charged to tax in respect of an electric company car is 2% of the list price of the car and optional accessories (as reduced by capital contributions of up to £5,000). The taxable amount is adjusted to reflect certain periods of unavailability and any contributions for private use.

The low charge means that an electric company car is a very tax-efficient benefit.

For example, the taxable amount for electric cars with a list price of £30,000 is set at only £600 for 2023/24. Consequently, a basic rate taxpayer would only pay £120 in tax for the benefit of having an electric company car available for their private use throughout 2023/24. For a higher-rate taxpayer, the tax hit is only £240.

Employers and employees who are not yet ready to embrace fully electric cars can consider a low-emission model. For cars in the 1 to 50g/km emissions bracket, the tax charge also depends on the electric range of the car, with cars with an electric range of at least 130 miles benefitting from the same appropriate percentage as electric cars – 2% for 2022/23 to 2024/25 inclusive.

From April 2025, the tax payable on an electric company car is to be increased. The appropriate percentage will rise by one percentage point a year for three years from 2025/26. As a result, the charge will be 3% in 2025/26, 4% in 2026/27 and 5% in 2027/28. The charge for low-emission cars is similarly increased, with the charge for those with an electric range of 130 miles or more remaining aligned with that for electric cars.

As an employer, you must pay Class 1A National Insurance contributions on the total, taxable benefits paid to employees.

For 2023/24, this is payable at the rate of 13.8%%. Consequently, the lower the benefit tax charge for employees, the lower your associated Class 1A National Insurance bill.

As an added incentive, you can claim a 100% first-year capital allowance for any new and unused electric cars that you purchase.

Please see the following HMRC link https://www.gov.uk/government/news/new-laws-to-make-charging-an-electric-vehicle-easier-and-quicker

Car fuel benefit charges

HMRC does not regard electricity as a ‘fuel’ for the purposes of the fuel benefit charge.

Consequently, if you provide or meet the cost of electricity for an employee’s private mileage in an electric company car, the employee will not be taxed on that provision, and there is no Class 1A for you to pay.

If an employee with a company car meets the cost of electricity for business journeys, you can make a mileage payment tax-free as long as the amount paid is not more than the advisory fuel rate at that time. From 1 December 2022, the tax-free rate is 8 pence per mile.

By comparison, company car drivers of hybrid or petrol/diesel fuelled vehicles could be paying a significant, additional tax charge if their employer meets private fuel costs. Where fuel is provided for private journeys in a non-electric company car, the taxable amount for 2025/24 is the appropriate percentage used to calculate the car tax benefit multiplied by £27,800.

Workplace charging

A tax exemption applies if you provide electric charging facilities that can be used by employees to charge their cars.

The exemption applies when the charging facilities are used by an employee to charge their car or a car in which they are a passenger (for example, a car used to give an employee a lift to work).

The exemption is not relevant to company cars –there is no fuel benefit charge if the employee meets the cost of electricity for private mileage in a company car.

The exemption only applies to charging facilities that are provided at or near the workplace and which are available to your employees generally. It does not apply if you reimburse an employee for the cost of charging their vehicle away from the workplace.

If you invest in electric charge points you will be able to claim a 100% first-year allowance, obtaining immediate relief for the expenditure. The expenditure must be incurred on or before 31 March 2025 for corporation tax purposes and on or before 5 April 2025 for income tax purposes.

Company vans

A tax charge arises under the benefit-in-kind rules if a company van is available to an employee for unrestricted private use. No charge arises if private use is restricted to home-to-work travel.

There is no tax charge if an employee has unrestricted private use of an electric company van. By contrast, the amount charged to tax for 2023/24 where an employee has unrestricted private use of a van other than an electric van is £3,960. Choosing an electric company van will save an employee paying tax at the basic rate of £792 in tax and an employee paying tax at the higher rate of £1,584 in tax.

Employers will also save Class 1A National Insurance of £546.48.

As with company cars, electricity is not regarded as a ‘fuel’ for the purposes of the fuel scale charge. Consequently, if you meet the cost of electricity for unrestricted private mileage in a company van, there is no associated fuel benefit charge. By contrast, if fuel is provided for private journeys in a non-electric company van which is available for unrestricted private use, a taxable benefit of £757 arises.

 We can help

As the infrastructure for recharging electric vehicles expands, and with our aims to meet climate change obligations, the tax incentives set out above are the icing on the cake.

If you are considering your options and need advice on the tax benefits, please call An Accounting Gem today 01473 744700, we can help you formulate a tax-efficient company vehicle policy and explain the tax implications of your vehicle choices.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/student-loan-repayments/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.

 

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World Savings Day 31st October

Considering the future and crafting financial plans is a prudent practice. World Savings Day, which encourages setting aside a portion of your income on a regular basis, epitomises this financial wisdom.

The history of World Savings Day was established in 1934 in Milan, Italy, during the First International Savings Bank Congress, where representatives from 29 nations convened, World Savings Day was originally conceived to promote thriftiness worldwide. Interestingly, it was initially known as World Thrift Day!

Emerging in the wake of the Great Depression’s impact on global economies, the concept behind World Savings Day aimed to rekindle people’s confidence in saving money, ultimately striving for an improved quality of life. By raising public awareness and nurturing hope for a brighter financial future, this day serves as a valuable reminder and educational platform for those seeking financial security.

 

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/student-loan-repayments/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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Student Loan Repayments

Making repayments through Self-Assessment

If you are within Self-Assessment and have a student and/or postgraduate loan in respect of which repayments were due to start before the end of the tax year to which the return relates, you will need to complete the student or postgraduate loan section of the return.

Key dates

Self-Assessment tax returns must be filed by midnight on 31st January following the end of the tax year to which the return relates. You must file your 2022/23 tax return online by midnight on 31st  January 2024.

This note explains how and when student loan repayments may be collected through the Self-Assessment system.

Repaying a student or postgraduate loan

If you have a student and/or postgraduate loan, you will need to make repayments in respect of that loan once your income exceeds the threshold for the type of loan(s) that you have.

https://www.gov.uk/repaying-your-student-loan

If you are an employee, your employer will deduct repayments in respect of your student and/or postgraduate loan from your pay and pay them over to the Student Loan Company (SLC).

However, if you are self-employed or have other income, such as taxable dividend income, you may need to complete the student loan or postgraduate loan repayment section of your Self Assessment tax return and makes repayments through the Self Assessment system.

Directors of personal and family companies

If you are a director shareholder of your own personal or family company, you may take a small salary and receive the majority of your income in the form of dividends. If you have a student or postgraduate loan and your salary is below the repayment threshold (as will be the case if your salary is equal to the personal allowance), your company will not need to deduct student or postgraduate loan repayments from your salary.

However, you will still need to make student loan repayments if your gross annual income exceeds the repayment threshold for the type of loan that you have. Your gross annual income will include dividend income and any other income that you may have, such as rental income.

You will normally need to start making repayments from the start of the tax year after you finish your course.

Repayment thresholds for 2022/23

The repayment thresholds for 2022/23 are shown in the table below. You will need to make repayments if your income exceeds the threshold for the loan that you have.

Loan type 2022/23 repayment threshold
Plan 1 student loan £20,195
Plan 2 student loan £27,295
Plan 4 student loan £25,375
Postgraduate loan £21,000

 

Student loan repayments are made at the rate of 9% of income in excess of the relevant threshold. For postgraduate loans, repayments are made at the rate of 6% of income in excess of the threshold.

Repayments are paid at the same time as tax due under Self Assessment. For 2022/23, the deadline is 31st January 2024.

Telling HMRC about student loan repayments

You will need to complete the student or post graduate loan repayment section of your Self-Assessment tax return for 2022/23 if the SLC has told you that your repayments were due to start on or before 6th April 2022.

If you have both a student loan and a postgraduate loan, you will need to complete both sections. You will need to indicate on your return whether you are repaying a student loan and, if so, the type of loan, whether you are repaying a postgraduate loan, or both. These boxes may already be completed from information that HMRC have received from the SLC.

If you have made any repayments through employment, you will need to provide this information when completing your return. You will be able to find details of any student loan deductions on your P60.

Please call if you need help with any of the issues raised in this alert on 01473 744700.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/dormant-companies-tell-hmrc/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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Dormant companies – Tell HMRC

If you have a dormant company, you may receive a letter from HMRC asking you to confirm that no tax is due. You may need to do this even if you have already told HMRC that your company is dormant.

Key dates

Company accounts must be filed with Companies House within nine months of the end of the accounting period. Any corporation tax due for the period must be paid nine months and one day after the year-end. However, companies have 12 months from the end of the accounting period in which to file their company tax return with HMRC.

This note explains when your company will be treated as dormant and what action you need to take.

When is a company ‘dormant’?

Your company may be ‘dormant’ if you are not doing any business and your company does not have any other income, for example, from investments. The meaning of ‘dormant’ for tax purposes is different from that for accounting purposes.

Dormant for corporation tax

HMRC considers a company to be dormant if it is not ‘active’. A company will be active if it is carrying on a business activity, it is trading or receiving income.

Your company will be dormant for corporation tax purposes if:

  • it has stopped trading and has no other income.
  • it is a new limited company which has yet to start trading.
  • it is an unincorporated association or club which owes less than £100 in corporation tax; or
  • it is a flat management company.

A company that is dormant is not liable for corporation tax.

If you think your company is dormant, you can tell HMRC online (see www.gov.uk/tell-hmrc-your-company-is-dormant-for-corporation-tax). If you cannot use the online form, you can also tell HMRC by post or by phone.

If you have received a notice to deliver a company tax return, you will need to do this. This will show HMRC that your company is dormant. Once you have told HMRC that your company is dormant, you will not need to file further company tax returns unless you receive a notice to file.

You may also receive a letter from HMRC telling you that they have decided to treat your company as dormant and that you do not have to file company tax returns.

Dormant for Companies House

Even if your company is not active, you still need to file your confirmation statement with Companies House and file accounts with them. You can file dormant company accounts if your company is dormant and qualifies as ‘small’.

Your company will be considered ‘dormant’ by Companies House if there are no significant transactions in the year. ‘Significant transactions’ do not include filing fees paid to Companies House, any penalties charged for the late filing of accounts, and money paid for shares when the company was incorporated.

Telling HMRC that no corporation tax is due.

Despite having told HMRC that your company is dormant, you may receive a letter from them reminding you when the corporation tax for the period is due. The letter will also inform you that if you do not owe any corporation tax, you should tell HMRC as soon as possible. The letter warns that if you do not tell HMRC that no corporation tax is due, you will continue to receive payment reminders.

To tell HMRC that no corporation tax is due, and put a stop to payment reminder letters, you need to visit the Gov. UK website at www.gov.uk/pay-corporation-tax and select ‘tell HMRC no amount is due’. It is simply a case of clicking on the ‘nil to pay form’ and entering your 17-digit corporation tax reference, which can be found in the letter. This will be your company’s 10-digit unique taxpayer plus additional digits and letters that indicate the period in question, for example, 1234005678A00101A. It is important that the reference is entered correctly.

 

Please call if you need help with any of the issues raised in this alert on 01473 744700.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/hmrc-deadlines-october-2023/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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HMRC Deadlines – October 2023

Taxpayers must undertake various tasks, such as filing returns and paying tax, by certain dates. If these deadlines are missed, HMRC may charge late filing and late payment penalties. Interest is also charged on tax paid late.

Key dates

The key dates in October 2023 are 1st October for corporation tax payments, 5th October for registering for Self-Assessment, 7th October for filing VAT returns paying VAT, 19th October for payment of PAYE and NIC and amounts due under a 2022/23 PSA by cheque and 22nd October for payment of PAYE and NIC and amounts due under a 2022/23 PSA electronically

This note explains some important tax deadlines which must be met in October 2023.

1st October 2023

Corporation tax for accounting periods ending on 31st December 2022 must be paid by 1st October 2023. However, a company has until 12 months from the end of the accounting period to file their company tax return, so while the corporation tax for the year to 31st December 2022 must be paid by 1st October 2023, the company has until 31st December 2023 to file its Company Tax Return.

5th October 2023

PAYE tax month 5 comes to an end on 5th October 2023.

If you are not already registered for Self Assessment and you will need to submit a Self Assessment tax return for the first time for 2022/23, you will need to register by 5th October 2023. This may be the case if you started a new business as a sole trader or become a partner in a partnership in 2022/23 or if you became a landlord and your income from either source is more than £1,000. You may also need to register if you have other income to declare, such as taxable dividend or savings income. You can register online using the tool on the Gov.uk website.

7th October 2023

VAT-registered businesses must file their VAT return for the quarter to 31st August 2023 online by 7th October 2023 and pay any associated VAT by the same date.

19th October 2023

Employers who pay their PAYE and NIC by cheque must ensure that their payment for month 6 (to 5 October 2023) reaches the Accounts Office by 19th October 2023

While HMRC do operate a three day period of grace for payments received within three days or the due date, it is prudent to post the cheque in sufficient time for it to reach HMRC by 19th October 2023.

If you had a PAYE Settlement Agreement (PSA) in place for 2022/23 and you make your payments by cheque, you will need to ensure that your payment for the tax and Class 1B National Insurance due under your PSA reaches HMRC by 19th October 2023.

22nd October 2023

Employers who pay their PAYE and NIC electronically enjoy a later deadline than those who pay by cheque. The deadline for electronic payments is the 22nd of the month. If you pay your PAYE and NIC electronically, you will need to ensure that your payment of PAYE and NIC for month 5 clears HMRC’s account by 22nd October 2023.

If you have a PSA in place for 2022/23 and you make your payments electronically, you will need to ensure that your payment for the tax and Class 1B due under your PSA clears HMRC’s account by 22nd October 2023.

As 22nd October 2023 falls on a Sunday, in reality, you will need to time your payments so that they reach HMRC’s account by Friday 20th October 2023 to ensure that the deadline is met.

31 October 2023

Companies with a 31st October 2022 year end must ensure that they have filed their company tax return by 31st October 2023.

If your company prepared its accounts to 31st January 2023, you will need to ensure that your accounts are filed at Companies House by 31st October 2023.

 

Please call if you need help with any of the issues raised in this alert on 01473 744700.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/child-trust-funds-unclaimed-accounts/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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Child Trust Funds – unclaimed accounts

Child Trust Funds are tax-free savings accounts for children. A report published in July this year revealed that almost one million young adults have unclaimed Child Trust Funds worth in total £1.7bn. The child is able to access the funds in the account when they turn 18.

Key dates

The scheme applied to eligible children born between 1st September 2002 and 2nd January 2011.

This note explains the nature of Child Trust Funds and how to track down a lost account.

Nature of Child Trust Funds

Child Trust Funds are Government-assisted savings accounts for children. At birth, the parents of all eligible children born between 1 September 2002 and 2 January 2011 inclusive received a voucher from the Government for £250 with which to open a Child Trust Fund Account. A further £250 was paid directly into the accounts of children from low income families.

For a short period from September 2009 to August 2010, the Government added an additional payment of £250 to the account when the child turned seven, with children from low income families receiving a further £250.

Consequently, depending on when the child was born and whether the child was from a low income family, the Government contribution will be between £250 and £1,000.

Children were eligible for an account if they were living in the UK and their parent or guardian claimed child benefit for them. Once set up, anyone could add to the account up to a maximum of £9,000 a year. The year runs from the date of the child’s birthday.

The child can take over the management of the account from the age of 16. They can access the funds in the account when they turn 18.

The scheme closed on 2nd January 2011 and children born after this date were not eligible for a Child Trust Fund. The scheme was replaced by Junior ISAs.

Finding a lost account

If you were born between 1st September 2002 and 2nd January 2011 or had a child who was born between these dates, a Child Trust Fund may exist which amounts to at least £250.

If you think you or your child may have an account but you have lost the details, you can ask either the Child Fund Provider, if you know who this is, or HMRC, to help you find the account.

If you know the Child Trust Fund provider, you should contact them in the first instance.

Asking HMRC for help

If you do not know the Child Trust Fund provider, you can ask HMRC to help you track down a lost Child Trust Fund if you are aged 16 or over and trying to find an account in your name or you are the parent or guardian of a child under the age of 18.

There are two ways to do this – either using the online form which can be found on the Gov.uk website or by post. To use the online form you will need to sign into your Government Gateway account. If you do not already have an account, you will need to set one up. You will also need your National Insurance number.

https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

Requesting details by post

You can also write to HMRC to request details of your own Child Trust Fund if you are aged 16 or over, or the details of your child’s Child Trust Fund if they are under 18.

If you are requesting details of your own Child Trust Fund, you will need to provide the following details:

  • your full name;
  • your address;
  • your date of birth;
  • if you are adopted, your adoption details; and
  • your National Insurance number.

If you are a parent or guardian requesting details of a minor child’s account, you will need to provide:

  • your full name, address and date of birth;
  • your child’s full name, address and date of birth;
  • any previous names used by you or your child; and
  • your National Insurance number.

You can also provide your child’s National Insurance number if they have one and you know this.

The information request should be sent to:

Charities, Savings and International 1

HMRC

BX9 1AU

Responding to a request

HMRC aim to provide a response with three weeks. If a Child Trust Fund exists, they will provide you with details of the Child Trust Fund provider. You can then contact them direct.

If the child is adopted or you have been given parental responsibility for the child by a court, HMRC will write to you asking for more information.

If you do not hear anything within three weeks, you should contact HMRC at the above address. If you have a reference number, you should include this in your letter.

 

Please call if you need help with any of the issues raised in this alert on 01473 744700.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/driving-success-together/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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The Advantages of Staff Members Using Personal Vehicles

In today’s dynamic business landscape, finding innovative ways to enhance productivity and employee satisfaction is paramount. At An Accounting Gem, we believe that embracing the use of personal vehicles by staff members can unlock a range of benefits for both our team and our valued clients. Let’s explore how this approach is driving success and fostering a stronger connection with our community.

Flexibility and Efficiency:

Our staff’s ability to utilise their personal vehicles empowers them with a new level of flexibility. This means they can attend client meetings, perform site visits, and handle urgent tasks without being limited by traditional commuting options. This flexibility translates into improved time management, increased responsiveness, and ultimately, better service for our clients.

Enhanced Productivity:

By using their personal vehicles, our team members can optimise their daily routines. Commute times are reduced, translating into more time spent on meaningful tasks that contribute directly to our client’s financial well-being. This improved productivity allows us to provide more comprehensive and timely support, no matter the circumstance.

Personalised Client Engagement:

At An Accounting Gem, we prioritise personal connections with our clients. When our team members utilise their personal vehicles for client meetings, it fosters a stronger sense of dedication and commitment. Face-to-face interactions become richer, enabling us to truly understand our client’s needs and provide tailored solutions that drive their success.

Cost-Effective Solutions:

We understand that cost-effectiveness is a shared priority. By encouraging our staff to use their personal vehicles for work-related tasks, we not only save on commuting expenses but also pass on the benefits to our clients. This approach aligns with our commitment to deliver high-value services while ensuring a positive impact on our clients’ budgets.

Call us today!

As An Accounting Gem continues to leverage the benefits of staff members utilising their personal vehicles, we invite you to be a part of this journey. If you’re a current client seeking more personalised interactions or a potential client interested in experiencing exceptional financial guidance, we’re here for you.

Contact us today to:

– Learn how our dedicated team can tailor financial solutions to meet your specific needs.

– Experience firsthand the benefits of our team members using their personal vehicles to provide unmatched client engagement.

– Schedule a consultation to explore how we can drive your financial success together.

At An Accounting Gem in Ipswich, we believe that innovation and client-centred approaches are the keys to success. Join us in shaping a brighter financial future for you and your business. Call us today at 01473 744700  to begin a conversation that will empower your financial journey.

 

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/file-your-2022-23-tax-return-now/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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File your 2022/23 tax return now

Although the deadline for filing your 2022/23 Self-Assessment tax return online is not until 31st January 2024, there are benefits to filing early. Once you know how much you need to pay, you can put money aside to meet your tax bill.

Key dates

The 2022/23 Self-Assessment tax return must be filed online by 31st January 2024. Any remaining tax and Class 4 National Insurance for 2022/23 must be paid by the same date, as must your 2022/23 Class 2 National Insurance liability. The first payment on account for 2023/24 is also due by 31st January 2024.

This note explains the benefits of early filing.

Benefit 1: More accurate financial planning.

Once we have filed your 2022/23 tax return, we will be able to tell you what you owe by when. This will allow for more accurate financial planning and help you set aside sufficient funds to pay your tax and National Insurance bill.

You will need to pay any tax and National Insurance (Class 2 and Class 4) which remains due for 2022/23 by 31st January 2024. If your tax and Class 4 National Insurance liability for 2022/23 is more than £1,000 and you do not pay at least 80% through PAYE or otherwise under deduction at source, you will need to make payments on account of your 2023/24 tax bill. Each payment is 50% of your 2022/23 tax and Class 4 National Insurance liability. The first payment on account for 2022/23 is also due by 31st January 2024.

Benefit 2: Spread the cost with a Budget Payment Plan

You can spread the cost of your tax bill by setting up a Budget Plan and making regular weekly or monthly contributions to your next tax bill. A Budget Payment Plan can be set up online via your HMRC Personal Tax Account. You can choose how much you want to pay. The money in the Budget Payment Plan will be used to pay your tax bill. If the amount you have saved is insufficient to cover your tax bill, you will need to pay the balance by the due date. If you have saved too much, you can request a refund.

Benefit 3: Set up a Time to Pay arrangement if you are struggling to pay

If you know in advance that you will struggle to pay your Self-Assessment tax bill in full and on time, you can act in advance to avoid incurring unnecessary interest and penalties. Depending on how much you owe and whether you are up to date with your tax liabilities, you may be able to set up a Time to Pay arrangement online. This may be an option if you owe £30,000 or less and do not have any other tax debts or Time to Pay arrangements. To do this, visit www.tax.service.gov.uk/pay-what-you-owe-in-instalments.

If you cannot set up a Time to Pay online, you will need to contact HMRC to discuss a possible agreement.

Benefit 4: Access a tax refund sooner.

If you paid too much tax for 2022/23, the sooner we file your 2022/23 tax return, the sooner you will be able to benefit from the refund. We will let you know if you are due a refund. You can also check in the HMRC app.

Benefit 5: Peace of mind.

Filing your 2022/23 ahead of the deadline will give you peace of mind from knowing that the job is done and that you do not need to worry about it. It will also help you avoid a last-minute rush to get everything together ahead of the filing deadline.

Help us to help you.

We will need information from you to enable us to file your 2022/23 tax return early. We will need details of your income and expenditure in 2022/23, as well as details of any bank interest and dividends that you have received. If you are employed, we will need your P60 and P11D. We will also need to know whether you have made pension or charitable contributions. If you sold assets in the 2022/23 tax year, we would need details of these too.

Please call us today at 01473 744700 if you need help with any of the issues raised in this alert.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/national-dog-day-on-august-26th/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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National Dog Day on August 26th

Celebrating Our Furry Friends: National Dog Day on August 26th

Get ready to mark your calendars and shower your furry companions with love and treats because National Dog Day is just around the corner! On August 26th, dog lovers all around the world will come together to celebrate the incredible bond between humans and their canine companions.

A Day to Honour Our Four-Legged Friends

National Dog Day, observed annually on August 26th, is a day dedicated to honouring dogs of all shapes, sizes, and breeds. Whether you have a loyal Labrador, a playful Poodle, or an adventurous Border Collie, this day is a perfect opportunity to express gratitude for the unconditional love, joy, and companionship that dogs bring into our lives.

History of National Dog Day

Founded in 2004 by animal advocate and pet lifestyle expert Colleen Paige, National Dog Day was established to raise awareness about the number of dogs in need of adoption and to recognise the essential role that dogs play in our lives. The date of August 26th holds special significance as it commemorates the day Colleen’s family adopted her first dog when she was just 10 years old.

Ways to Celebrate National Dog Day

  1. Adopt or Foster: If you’ve been considering bringing a new furry friend into your family, National Dog Day is an excellent time to visit your local animal rescue centre. Adopting a dog not only changes their life but also enriches yours.
  2. Spoil with Treats: Treat your pup to their favourite treats, perhaps even whip up some homemade dog treats. Just be sure to check for any dietary restrictions or allergies your dog might have.
  3. Playtime Extravaganza: Dogs love to play, so dedicate some extra time to engage in their favourite games. Whether it’s fetch, tug-of-war, or a good old-fashioned game of hide-and-seek, your pup will appreciate the fun bonding time.
  4. Outdoor Adventures: Dogs thrive on exploration, so take them on an exciting adventure. Whether it’s a walk in the woods, a trip to the beach, or a stroll in the local park, the outdoors offers endless opportunities for your dog to sniff, explore, and enjoy the world around them.
  5. Grooming Spa Day: Pamper your pup with a relaxing grooming session. Give them a bath, brush their coat, and maybe even treat them to a professional grooming appointment to ensure they look and feel their best.
  6. Capture Memories: Dedicate some time to capturing beautiful memories with your dog. Whether it’s a professional photoshoot or candid snapshots, these moments will be cherished for years to come.
  7. Support Animal Welfare Organisations: Donate to local animal shelters or rescue organisations. These groups work tirelessly to care for and find homes for dogs in need.
  8. Training and Enrichment: Spend time teaching your dog a new trick or engaging their minds with puzzle toys and enrichment activities. Mental stimulation is just as important as physical exercise.
  9. Cuddle and Bond: Sometimes, the simplest way to celebrate is by cuddling up with your dog and enjoying some quality bonding time.

Final Thoughts

National Dog Day serves as a poignant reminder of the special place that dogs hold in our lives. Whether they’re working alongside us, providing emotional support, or simply being our best friends, dogs enrich our world in countless ways. So, on August 26th, let’s come together to celebrate these incredible creatures, showing them the love and appreciation they deserve on this special day and every day.

If you have any accounting issues, please call An Accounting Gem The Tax specialist in Ipswich, Suffolk on 744700.

To see another An Accounting Gem blog check out this link: https://www.aag-accountants.co.uk/overlap-relief-claim-it-or-lose-it/

Disclaimer: This blog is not intended to provide legal or financial advice. This blog is for informational purposes only. The information provided on this blog is not intended to be a substitute for professional advice. Before taking any action, you should seek advice from a qualified professional. The author of this blog is not liable for any losses, damages, or expenses incurred as a result of using the information provided on this blog.
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