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Taxation

You need to tell HM Revenue & Customs if you have taxable income, which is not declared. However, you can use our in-house facilities for your bookkeeping, payroll, VAT and others, which might otherwise be time consuming, costly and more complicated. Therefore, we offer a variety of comprehensive and confidential taxation services as a tax advisor to aid in the tax related obligations and so that you may have spare time to concentrate on your core business activities.

We offer for your tax affairs………….

  • Preparing your Corporation Tax Computations and submitting the Tax returns to HM Revenue & Customs
  • Completion and submission of self-assessment tax returns
  • Tax planning for a director
  • Tax computation for the UK property income
  • Preparation of the VAT calculations and it’s submission
  • Records keeping of PAYE and wages and submission to HM Revenue & Customs
  • Work as an umbrella company for your payroll
  • Capital gains tax planning, calculations and summation
  • Inheritance tax planning, computation and the return submissions
  • Dealing with HM Revenue & Customs regarding individuals and company tax affairs
  • HMRC compliance and tax investigations
  • Providing guidance and helping for paying the tax liabilities on time
  • Other tax related services; statutory sick pay, statutory maternity and paternity pay, tax credits, child benefits and more

The Autumn Budget 2022 at a Glance

The Autumn Budget 2022 at a Glance

The Autumn Budget 2022 has a significant to you and your business as it has huge number of changes on tax matters once the Mini Budget 2022 became questionable. While people are suffering from living costs, the Government takes many steps in this budget. In this article, the writer will note the summary of key tax matters relevant to you and your business.

Income Tax Allowance and Rates for Individuals

  • The basic, higher, and additional income tax rates will remain at 20%, 40% and 45% respectively for 2023/24 tax year
  • The basic and higher rate thresholds remain at the current level of £12,570 and £50,270. However, the additional income rate thresholds will reduce from £150,000 to £125,140 from April 2023
  • The personal allowance will remain frozen at £12,570 until 6 April 2028

 National insurance (NI) Contributions

  • The employment allowance is set at the current level of £5,000
  • The Health and Social Care Levy is no longer going ahead and the temporary NIC increase of 1.25% has been removed from 6 November 2022
  • The national insurance thresholds for all classes will be maintained at the current level until April 2028

National Minimum Wage

  • From April 2023, the hourly national minimum will increase to £10.42 (aged 23 or over), £10.18 (aged between 21 and 22), £7.49 (aged from 18 to 29), £5.28 (16-17 years old) and £5.28 (apprentice rate)   

Dividend Allowance and Tax Rates

  • The annual dividend allowance for individual will reduce from £2,000 to £1,000 from April 2023 and a further reduction to £500 from April 2024
  • The dividend tax rate will remain at the current level of £8.75%, 33.75% and 39.35% respectively for the basic, higher, and additional taxpayers

Corporation Tax

  • From April 2023, the companies with profits over £250,000 will pay tax at 25% and small companies with profits up to £50,000 will pay tax at the current rate of 19%
  • Companies with profits between £50,000 and £250,000 will pay tax the main rate reduced by a marginal relief providing gradual increase in the effective corporate tax rate

Annual Investment Allowance

  • Annual Investment Allowance (AIA) has been confirmed at a permanent rate of £1 million from April 2023

Annual Exemption Reduction of Capital Gains Tax (CGT)

  • The annual exemption of capital gains tax for individuals will reduce from £12,300 to £6,000 from April 2023 and then further to £3,000 from April 2024

Inheritance Tax (IHT)

  • The thresholds will remain at the current level (until April 2028) for Inheritance tax nil-rate band (£325,000) and residence nil-rate band (75,000)
  • Without IHT liability, qualifying estates can continue to pass on up to £500,000 and qualifying estate of a surviving spouse or civil partner can continue up to £1m

Stamp Duty Land Tax (SDLT)

  • The cut of Stamp Duty Land Tax (SDLT) will remain in place until 31 March 2025. On 23 September 2022, the government increased the nil-rate threshold of SDLT from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold paid by first-time buyers from £300,000 to £425,000
  • The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000. This will now be a temporary SDLT reduction which will remain in place until 31 March 2025
 

Disclaimer: The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.

The Autumn Budget 2022 at a Glance Read More »

Tax Return 2022 – Key Benefits of Early Self-Assessment Tax Filing

Tax Return 2022 – Key Benefits of Early Self-Assessment Tax Filing

The self-assessment tax return for tax year ended 05 April 2022 is due to submit online by 31 January 2023 to avoid late filling penalties. However, submitting the return well in advance could get several benefits including saving your time and money. In this article, we will mention the key benefits of being self-assessment early bird.

Key Benefits of Being Self-Assessment Early Bird

 
  • Time to arrange finance: Doing early self-assessment means you know how much tax is due to pay and then you have more time to manage the finance to pay your tax bills on time. You know that late tax payment is subject to interest and penalty charges by HMRC.
  • Claiming tax refund sooner: If you have any repayment available from HMRC once you have submitted your tax return, you can claim early repayment and then able to manage your finance smoothly.
  • Right information ready for mortgage: If you have plan to buy a property and want to get mortgage or mortgaging your current property, the lender will look for your present circumstances with right information. Doing the early tax return submission means your information is ready for the lender to get sorted your mortgage.
  • No stress for first time: If you are doing the first tax filing means you may not quite familiar with self-assessment tax affairs. Therefore, plan for early tax return will give you more time to submit the tax return without any stress. There is a great chance of missing the deadline if you are waiting for the last minute.
  • Time to find your tax accountants: Self-assessment tax return is not always straightforward and easy to submit to HMRC, specifically if you have complex scenarios or new in self-assessment tax matters. Waiting for the last minute means you may not be able to find your suitable and trusted tax accountants that you are looking for.
  • Escaping any mistakes: Once you have more time in your hands, you can gather the required documents and information as you need for your tax return. Moreover, you can review your tax return and computation precisely before submitting to HMRC. As you know that submitting the incorrect tax return could lead to penalty charges by HMRC.
  • Avoiding late filing penalties: HMRC imposes late filing fines if you are failure to submit the return on time. The fine starts from £100 and then will be more if you are late for longer.
  • Avoiding January madness: Almost all accountants are usually busy during the January time and if you are waiting for last minute means you will not get your desire services. Moreover, Contacting HMRC in January involves a long wait. To avoid the January madness, you can consider submitting your tax return earlier.   

Disclaimer: The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.

Tax Return 2022 – Key Benefits of Early Self-Assessment Tax Filing Read More »

Mini-Budget 2022

Mini-Budget 2022

How Does It Impact on You and Your Business?

The mini-budget 2022 by Kwasi Kwarteng has enormous changes for individuals and businesses here in the UK. However, the budget becomes questionable, though the Prime Minster and Chancellor are confidence for the economic growth. In this article, we will note the key aspects of the budget.

Key Aspects of The Mini-Budget 2022: –

 
  • The corporation tax will remain at 19% and the planned increase to 25% from April 2023 bas been withdrawn. This is good news for small businesses as they are struggling since the COVID-19 pandemic.
  • The 1.25% increase in dividend tax will be abolished from April 2023 which came into effect from this year (April 2022).
  • From April 2023, the income tax will be cut from 20% to 19% for basic rate taxpayers. In addition, the additional rate (45%) of income tax will also be abolished and only the higher rate of income tax at 40%. It looks like huge incentive for enterprise and hard-working people.
  • The rise of 1.25% in National Insurance (NI contributions) from 06 July 2022 will be reversed from 6 November 2022. As a result, you have “better take home” from your employment income.
  • In the past few years, the off-payroll working has been incredibly debatable. Good news! the controversial IR35 has been eliminated and this is a great move for the entire contracting industry.       
  • With the aim of high growth and low tax, the government cuts Stamp Duty Land Tax by doubling the level (from £125,000 to £250,000) for purchasing a residential property. Moreover, the SDLT is nil (level increase from £300,000 to £425,000) for the first-time buyers when the property price is less than £625,000 (rather than the current £500,000). This is really a great news for the property industry when the interest rate is rising sharply.
  • The Annual Investment Allowance (AIA) will remain at £1m and the planned fall to £200,000 from April 2023 has been removed.
  • To encourage investment in the small businesses, the investors can invest annually up to £200,000, which is double of the current limit. In addition, the company can raise up to £250,000 rather than the current limit of £150,000.
  • No major changes announced in the mini-budget regarding VAT, only VAT free shopping for overseas visitors. This will be replaced the old paper-based system with the digital one. It could encourage more visitors here in the UK that leads to the economic growth.

The mini-budget has huge tax cuts with the aim of economic growth and the question is whether this is sustainable as the government has huge debt because of the COVID-19 support made and the current war in Ukraine.

Disclaimer: The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.

Mini-Budget 2022 Read More »

UK Property Rental Income Tax: Seven Things to Know When You Let Property

UK Property Rental Income Tax: Seven Things to Know When You Let Property

Are you a property owner here in the UK and having property rental income? You might have questions how to manage your property income and expenses for tax purposes and whether any new rules coming that will affect you. In this article, we will mention seven key things as a guidance regarding your UK property rental income tax and might help you.

Seven Things About Property Rental Income Tax: –

 
  1. Register for Self Assessment: You should register with HMRC for your self assessment tax so that you can declare your UK property rental income. You can do the registration online or via post. Doing online registration is quicker and time consuming. Please note that the registration deadline is 05 October (for example, you should register by 05 October 2022 for tax year ending 05 April 2022).
  2. Record Keeping: You need to keep your rental income records for 5 years and 10 months after the end of the tax year. We commend to use one dedicated bank account for your property rental income and expenses and keep all invoices accordingly so that we can manage your record smoothly.
  3. Use All Available Expenses: A range of expenses are available to deduct from your property rental income that are allowable for tax purposes. Please have a look in HMRC website and speak to your tax advisors how to minimise your tax liability legitimately. Please note that any expenses that are “wholly and exclusively” for rental income purpose can be deductible.
  4. Transferring Ownership Between Spouses: If you are newly married and having property in your name only, you may transfer the property between spouses without paying Capital Gains Tax (CGT). However, the transfer might be subject to Stamp Duty Land Tax (SDLT) and you should take careful decision when doing so.
  5. Mortgage Interest and Tax Relief: Since April 2020, you are no longer eligible to deduct interest as an expense on your property rental income. Instead, you will receive tax relief at 20%. Therefore, the basic taxpayers can utilise the interest fully. Unfortunately, the higher and additional taxpayers can do so.
  6. Ready for Making Tax Digital (MTD): The MTD for ITSA is compulsory for all from 06 April 2024 for those people having annual rental income of more than £10,000. You need to update your rental income and expenses every quarter along with your annual self assessment tax return that you do currently.
  7. Submission and Payment to HMRC: 31 January is the deadline for submitting the tax return by online and pay the tax to HMRC as well on the same date. For example, the tax return for year ending 05 April 2022 should be submitted by 31 January 2023. If you submit paper-based tax return, then the submission should be by 31 October. Moreover, some taxpayers may subject to pay their tax liability on account and the deadline is 31 January and 31 July.   

As a landlord, you should comply with the tax matters on your property rental income. You may also consider some other aspects along with the above mentioned. The Stan Lee is here to help confidently on your UK property rental income tax affairs.

The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.   

UK Property Rental Income Tax: Seven Things to Know When You Let Property Read More »

Tax-Free Company Payment and Benefits for Employees

Tax-Free Company Payment and Benefits for Employees

Tax-Free Company Payment and Benefits for Employees

Tax-Free Company Payment and Benefits for Employees

Are you working as an employee and having payment and benefits from your employer? Do you know that all payment and benefits are not always taxable? In this article, we will explain the most common tax-free payment and benefits for employees here in the UK.

The most common tax-free company payment and benefits

Here are the most common tax-free payment and benefits just a guidance as follows, but not a complete list:

  • The meals in employer’s business premises or staff canteen, hot drinks, and water at work.
  • Costs for the mobile phone provided by your employer.
  • Parking space or facilities for car, motorcycle, and bicycle at or near the workplace.
  • Up to 60 journeys in each tax year for “work to home travel” when you are working late. Normally, this is taxable benefits if employer provide the cost for travel between home and regular workplace.
  • Any number of events (the £150 limit per head in each tax year for all events) including Christmas party, summer event and annual party.
  • Trivial benefits like birthday gifts, marriage anniversary presents (not in the form of cash or cash voucher and work recognition) that costs less than £50 per benefit. There is no limit in the number of trivial benefits in a year that employee receive, except the annual cap of £300 for the director in a close company.
  • Qualifying business expenses that “wholly and exclusively” for the business.
  • Living accommodation (job-related) that requires for the business to perform the duties.
  • Employer pension contributions to their employees withing certain limit of annual allowance and lifetime allowance.
  • Medical treatment abroad is to cover the costs of necessary medical or the cost of providing medical insurance for such treatment.
  • One health screening and one medical check-ups in a year to identify employees who might be at particular risk of ill-health.
  • Incidental overnight expenses when you are away during business journeys (£5 per night anywhere in the UK and £10 per night outside the UK).
  • Work related training costs including training fees, examination and certification costs, travel and subsistence costs for training.
  • Long service awards to directors or employees where the service is not less than 20 years, and no similar award has been made to the same employee within the previous 10 years. The award should be things or articles, rather than cash and should not exceed £50 for each year of service
  • The most counselling costs are tax-free benefits in connection with the termination of employment.
  • Up to a maximum of £8,000 per move is to cover the costs of removal or relocation for your new job or transfer to new workplace.
  • Business mileage allowance within certain limits and your employer pays you.
  • Home working allowance of up to £6 per week or £26 per month when you are working from home and your employer gives this allowance to cover your additional household expenses.

Please note that this article for just information purpose. You should ask your advisor to have specific requirements or check HMRC website for more details.

Looking for Tax Accountants?

At The Stan Lee, we pride to offer the efficient tax service and find the legitimate way to save your tax where possible. Please contact us and let’s find out how we can support on your tax matters.

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Tax-Free Company Benefits

Summer Event – Is This Tax-Free Employee Benefit?

Summer Event – Is This Tax-Free Employee Benefit?

Tax-Free Company Benefit

After the long stressful time during COVID-19 pandemic, you may offer the summer party for your employees and wonder whether the benefit is subject to the tax. In this article, we have a brief about tax-free events for your employees in the UK.

Conditions for tax-free events:

A statutory exemption exists where certain social events for employees are not triggering to tax or NICs liability once some conditions are satisfied as follows:

  • The total costs (including VAT) not exceed £150 per head (annually)
  • The event mainly for entertaining employees
  • Generally, the event open to all employees

The limit of £150 can be used in many events including Christmas Party, Summary Event and more. However, if there are two parties and the combined costs exceed the £150 limit, then £150 can be offset against the most expensive one and leaving the other one a fully taxable benefit.

You can also consider the tax-free trivial benefits (costs not more than £50) for your employees so that they may enjoy more the summer party. However, the benefits should not be in cash or cash voucher and not work recognised.

Tax treatment if £150 limit exceeds

If the costs per head (annually) exceeds the limit of £150, the full amount is subject to tax and NICs on the benefit-in-kind (BIK). However, the employees may not be taxed under PAYE or P11D if the employer agreed to pay HMRC under the PAYE Settlement Agreement (PSA). Under the PSA, the employer’s tax liability must be paid to HM Revenue and Customs by 19 October following the tax year ending.  

The costs of events (regardless of £150 limit) are tax allowable expenses for the employers and can be treated as “staff welfare” costs. The input VAT can be claimed back if the business is VAT registered.

If you have any questions and need further information about tax-free benefits, please feel free to get in touch with us. Also don’t forget to contact us for your accountancy, taxation and business support needs.

Summer Event – Is This Tax-Free Employee Benefit? Read More »

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The Stan Lee has the experience and expertise available to assist you as and when required. So what makes us different when compare to our competitors? The key difference is our team of highly qualified professionals go the extra mile for their clients.

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The Stan Lee is our trading name of two separate entities as follows:
  • Stan Lee Accountancy Ltd; an ACCA Accountancy firm (Reg No: 4607747 that offers accountancy, taxation, estate administration, ATOL and other business support services that are authorised by the ACCA.
  • Stan Lee Probate Limited; a CILEX-ACCA Probate firm, “Authorised and Regulated as a CILEX – ACCA Probate Entity, Authorisation number 3001291” that offers non-contentious Probate service only.

We are required by our professional bodies to have separate entity and therefore, there are two firms involved. Both firms are required to have Professional Indemnity Insurance (details of the PII available in our office upon request).

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