Karen Wharf Accounting

16/01/2023

Self assessment deadline looming 😯

23/12/2022

10/11/2022

Intuit QuickBooks.

29/09/2022

HIGHLIGHTS FROM MINI BUDGET - SEPT 2022

National Insurance U-Turn

In April 2022 Class 1 National Insurance (NI) contributions increased by 1.25p in the pound, this has now been reversed by the Government from 6 November 2022. Increases to Class 1A, Class1 B and Class 4 National Insurance Contributions have also been reversed by 1.25p in the pound.
This increase in National Insurance was the first step towards introducing the Health and Social Care Levy, an initiative that has now been scrapped.

Income Tax reduction
The Government will cut the basic rate of income tax to 19% from April 2023 (One year earlier than previously communicated). Meanwhile, the 45% additional rate of income tax will be abolished for England, Wales and Northern Ireland taxpayers (Different rates and thresholds for Scotland apply). Instead, there will be one single higher rate of income tax of 40% from April next year.

Corporation tax increase scrapped
During the Spring Statement, the former Chancellor announced an increase in the main rate of Corporation tax, rising from 19% to 25% in April 2023. This tax increase has now been cancelled and will not take place as scheduled.

Any other news in the business sector?
Whilst the news around Income Tax, National Insurance and Corporation Tax is the headline business news, there are further updates.
• The IR35 reforms of 2017 and 2021 will be repealed on 6 April 2023 - This means Agency workers (Contractors) providing their services via an intermediary will once again be responsible for determining their employment status, and paying the appropriate amount of tax and National Insurance contributions.
• The Annual investment allowance amount will remain at £1m indefinitely
• Start-up companies will now be able to raise up to £250,000 under the Seed Enterprise (SEIS) scheme that gives tax relief to investors. From April 2023 the criteria for entry has been widened, meaning more companies are eligible
• The amount of shares that can be optioned to employees under the Company Share Option Plan (CSOP) has been doubled from £30,000 to £60,000. This increase will be introduced from April 2023

24/03/2022

The Chancellor made his annual Spring Statement speech yesterday where he set out the Government’s tax plan to support the UK economy, businesses and families in both the short and the medium term.
Key measures the Chancellor announced as part of the plan include:
• an increase to the National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6 July 2022, aligning it with the equivalent income tax personal allowance which is set at £12,570 per annum
• from April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) and the Lower Profit Limit will not pay Class 2 NICs, while allowing individuals to be able to continue to build National Insurance credits
• the Employment Allowance will be increased by £1,000 from 6 April 2022 to £5,000, which will benefit around 495,000 businesses
• an immediate reduction in duty on diesel and petrol from 6pm on 23 March 2022, by 5 pence per litre, for 12 months.

The full detail on all the measures, some of which are subject to parliamentary approval, can be found on GOV.UK.

31/01/2022

Well that's my final 2021 tax return all filed with HMRC 😀. However for those who have tax returns still outstanding, the Revenue have given some extensions due to Covid. If you need any help please do not hesitate to contact me.