Category Archives: Business Update

BUSINESS UPDATE JAN/FEB 2020


BUSINESS UPDATE JAN/FEB 2020

We have now published our first newsletter for 2020.

The new tax year starting 6th April 2020 already promises some changes for businesses and individuals.

Businesses will need to be aware of the new rules for Off-payroll workers.  Our latest newsletter leads with this and you can find more information on our website.

Individuals who dispose of UK residential property after 5th April 2020 need to be aware of the new reporting and tax payment deadlines, for capital gains.  Further information can be found in the downloads from the “Recent News” section of our website.

Recent News

With the end of the current tax year approaching, this is a good time to review your personal and business affairs to ensure that you use all the annual reliefs and allowances that are available to you.

There has been a promise to not increase income tax, national insurance contributions (NIC), and VAT.  In fact, The Treasury have just announced a cut to NIC from 6 April 2020, with some 31 million taxpayers set to benefit.

National Insurance Changes

Less welcome is the news that reported losses to business from fraud and scams are on the rise with nearly 60,000 cases reported in 2018/19. Examples include employee misuse of corporate cards and claiming false business expenses, as well as organised payroll scams. Employers may reduce their vulnerability to fraud by fostering a loyal environment for whistle-blowers to come forward without fear of reprisals.

Meanwhile, taxpayers should beware of making honest mistakes on returns as a First-Tier Tribunal has upheld a penalty charged by HMRC for reporting income and tax-deducted figures from an incorrect P60.

Green governance for business is likely to remain a big theme with climate change rising to new levels of prominence by the end of 2019. There will be increasing pressure from government, clients and employees for businesses to become more environmentally responsible through green travel schemes, ethically invested funds, and the use of plastic and green products from supplier chains.

Our other stories include new restrictions on the relief given to corporations for capital gains and losses, and the new parental bereavement leave coming in from April.

You can check out our latest newsletter here: –

Business Update Jan/Feb 2020

Contact Paul Southward.

Paul Southward's News Roundup


Business Update November 2019


Business Update November 2019

BUSINESS UPDATE

The latest edition of our Business Update is now available

In the face of Political Turmoil, the people do what they do best – they get on with it

It is a shame that our politicians seem incapable of doing just that.  We hope that the forthcoming General Election will bring back some certainty and stability to assist businesses and individuals to get back on track.  There is no better time to focus on change, real and potential, legislative and personal.

Latest Business Update

Self-employment in today’s environment

In our feature for this edition, we highlight some of the issues around changing your working life and becoming self-employed. The numbers of people characterised as self-employed rose from around 12% of the workforce in 2001 to just over 15% in 2017 according to the Office for National Statistics. While it’s difficult to measure accurately, particularly with the increase in gig-economy roles, there is still an attraction to the idea of being your own boss and calling your own shots. But there are pitfalls and organisational issues which can make the difference between success and failure.

IR35 and Off-Payroll

For those already on that path as freelancers or contractors, another potentially major change is on the offing with the planned roll out of the off-payroll (IR35) rules to the private sector from April 2020. This will mean that end users hiring those working through personal service companies will become responsible for determining their employment status and potentially paying the relevant taxes. With some major companies already reviewing their use of such workers, some may find their employment status questioned or revised in the new tax year.

Company Cars

Change is also in the air for company car users as a substantial overhaul of the company car tax regime comes into play next April. The new WLTP emissions standards mean revised benefits in kind tables. Figures from 2016/17 showed a huge 79% of company cars were diesel, despite the diesel supplement, so the new tax rates are set to encourage greater take up of electric vehicles.

VAT

Amid the upheaval, you have to keep your eye on business as usual, so we also look at the knotty issue of getting it right on VAT to avoid penalties, or worse, tribunal cases. And if you’re a small employer, you will soon need to comply with pension re-enrolment rules.

As usual in life, there’s a balance to strike between continuity and change. We appear to be tipped further into the change side of the equation for now. Our next newsletter is due out in January and by then, the landscape may have changed again.

If you have any queries regarding an article covered in our latest Business Update contact Paul

The latest Business Update can be found here: –

Business Update November 2019

Southward or your usual KSK contact.

 


Business Update August 2019


Business Update August 2019

BUSINESS UPDATE

The latest edition of our Business Update series is now available

Whilst our politicians revel in their own inabilities to govern, just like father time tax changes march on.

EMPLOYER/EMPLOYEE TAX MATTERS

Our latest July/August newsletter address several work-related issues. In our feature story, we highlight recent changes in employment law including the right of all workers to detailed payslips recording their hours worked, helping to enforce compliance on weekly and nightly working limits. The status of EU nationals, consultation on the role of non-disclosure agreements in the workplace and pay and gender gap reporting are also under the spotlight.

IR35 AND OFF-PAYROLL WORKERS

The IR35 rules have also come under scrutiny as some major tribunal cases have found against HMRC and in favour of contractors. Although the examples we’ve seen are for TV presenters, the principles in each case set a precedent for workers in other industries. With IR35 still pegged to roll out to the private sector next year, there are still serious questions about the accuracy of HMRC’s tools and processes.

OFF-PAYROLL WORKERS NEW RULES FROM 6th APRIL 2019

There are important changes for individuals who supply their services through a personal service company and the contractors who engage them.  Read our article outlining the changes and making recommendations in preparation for them.  Download here: –

Off-Payroll Workers

MAKING TAX DIGITAL FOR VAT

Meanwhile Making Tax Digital for VAT has taken off, but not without a few complications. Some software packages may not deliver all you require for your digital reporting so make sure your IT system has the functionality you need.

OTHER STORIES

  • Could you be using simplified expenses? – Sole traders and partnerships can opt to use the simplified expenses rules. Find out if it could work for your business.
  • A question of property – Cuts to the tax relief rules for principal private residence and letting relief are coming in from next April in the latest round of changes to hit landlords.

Download a copy of our latest Business Update here:-

Business Update – Autumn 2019

If you have any queries arising ion connection with any of the issues covered, contact Paul Southward or your usual KSK contact.

Paul Southward


Business Update – Summer 2019


Business Update – Summer 2019

BUSINESS UPDATE

THE LATEST BUSINESS UPDATE FROM KSK

What with the Brexit fiasco continuing to drag on it is quite understandable that some people may be thinking that we are all caught up in some interminable Groundhog Day.

In our latest edition of Business Update we remind you that unlike Bill Murray’s character stuck in a Punxsutawney time-loop, there are plenty of tax issues and changes happening to keep individuals and businesses on their toes.

So just as Bill Murray’s character, Phil Connors eventually learned to turn his predicament to his advantage, we provide information and tips to help you keep moving forward.

2019/20 TAX YEAR CHANGES

Our lead article highlights some of the tax gains and losses that arise from the tax changes introduced from April 2019.

For summaries of the main changes made from April 2019, you may wish to consult our earlier articles published here:-

Personal tax changes

Personal tax changes 2019/20

Business tax changes

Business Tax Changes 2019-20

HIGH INCOME CHILD BENEFIT – PROTECT YOUR STATE PENSION RIGHTS

This article reminds parents with higher income of the potential tax charges, and also highlights how you may be able to protect your rights to State Pension.

AUTO-ENROLMENT PENSIONS

A reminder about the changes to employer and employee pension contributions under auto-enrolment.

WOULD YOUR BUSINESS BENEFIT FROM FLEXIBLE BENEFITS?

The feature story in our newsletter looks at ways in which employers may be able to help improve employees work-life balance.

“Flexing your business” considers how the concept of flexible working is now extending to other benefits for employees – from flexible payment structures, the opportunity to trade holidays for increased salary (or vice versa) or control over their working hours which could be over a monthly or even annual cycle.

The ‘one size fits all’ solution is no longer the only approach.

If you think your business would benefit from a flexible benefits policy, you should contact Paul Southward or your usual KSK contact.

CAPITAL GAINS TAX FOR NON-UK RESIDENTS

In this article we remind you of the changes to capital gains tax for non-UK resident landowners.  You can also read more on this in our tax alert issued on Friday 5th April 2019 – here

Tax Alert Friday 5th April 2019

MAKING TAX DIGITAL FOR VAT

A reminder that businesses (and landlords) with an annual turnover greater than £85k need to consider registering for MTD for VAT.

PROTECT YOU AND YOUR BUSINESS AGAINST FRAUD

Cases of fraud remain high, so we suggest ways to make sure your business isn’t leaving windows open to allow staff or associates to steal.

DOWNLOAD KSK BUSINESS UPDATE – SUMMER 2019

Here: KSK Business Update – Summer 2019

As usual, contact Paul Southward for more information.

Paul Southward