Comment On – Corporation Tax Rate for Investment Companies

The Finance Act 2021 (FA 2021) outlined the largest single increase in corporation tax rates since the 1970s, increasing the main corporation tax rate from 1 April 2023 by around a third from 19% to 25%. FA 2021 also reintroduced a ‘small profits rate’ for companies with profits below £50,000, and a marginal rate for profits between £50,000 and £250,000. However, the small and marginal rates provide no shelter for investment companies that, from 1 April 2023, will pay corporation tax at the top 25% rate irrespective of their profits.

Should your company’s accounting period straddle the effective date of 1 April 2023, the corporation tax rate will be a blended rate for that year. For example, 23.5% for a company with a 31 December 2023 year end. This blended rate is the rate at which all profits of the accounting period will be taxed, including investment disposals, regardless of when, during the year they are sold.

There are some exceptions – find out more information about these and other details to keep in mind here. If you have a query about Corporation Tax rates, please contact us at mail@chiene.co.uk.

 

Early Stage Growth Challenge Fund Independent Report

One requirement of receiving funding under the Early Stage Growth Challenge Fund is that – throughout the duration of the loan or whilst Scottish Enterprise (‘SE’) holds shares in your company – you must provide an annual report which sets out how the funding has been spent.

The report must be prepared by an independent firm of accountants and submitted within 30 days following each anniversary of the date of payment of the funding. your Funding Award. We will prepare the report in the required format and send to SE.

Chiene + Tait can produce these annual reports, which demonstrate that your funds have been spent in line with your application. Working together with you, we will undertake an independent inspection of the relevant accounts records in accordance with the terms of your Funding Award. We will prepare the report in the required format and send to SE.

For more details on how we can help your business contact us today at mail@chiene.co.uk.

How to settle your Self Assessment tax bill

There are many ways to pay a tax bill from HM Revenue and Customs (HMRC).

Bank transfers

You can make a transfer directly from your bank or building society account to HMRC. The payment details for UK transfers are:

  • Account number: 12001039
  • Sort code: 08-32-10
  • Account name: HMRC Cumbernauld
  • Reference: use the payment reference in the correspondence from your Chiene + Tait contact

You may previously have made payment to HMRC Shipley (account number 12001020). The Cumbernauld and Shipley accounts work the same for all taxpayers and either can be used.

There are different payment details for international bank transfers. These are:

  • Bank identifier code (BIC): BARCGB22
  • Account number (IBAN): GB62BARC20114770297690

Using your debit card online

Go to www.gov.uk/pay-tax-debit-credit-card to complete a short form. The answers to each question should be as follows:

  • Tax you wish to pay: Self Assessment
  • Do you wish to sign into your tax account?: No, continue to payment options
  • Select the way you wish to pay
  • Add your Unique Taxpayer Reference – this is the payment reference you will find in the correspondence from your Chiene + Tait contact without the final ‘K’
  • Enter the amount to pay and follow the remaining payment options

By cheque through the post

Send your payslip and a cheque payable to ‘HM Revenue and Customs only + [the payment reference noted on your correspondence]’ to:

HM Revenue and Customs
Direct
BX5 5BD

If you have not received a payslip from HMRC, please let us know and we shall be happy to provide one.

Late payments

Penalties arise on late payments. These are set at 5%, which is added to balances 30 days after the due date, again at six months after the due date, and then again at 12 months after the due date. HMRC also charges interest on late payments.

Time To Pay arrangements

Please note that if you are having difficulties in meeting your tax liabilities HMRC may agree to put in place Time To Pay arrangements to spread the payment over a period of time. Please let us know if you’d like to discuss this further.

Further guidance and information

HMRC’s full information on Self Assessment tax bills is available at www.gov.uk/pay-self-assessment-tax-bill.

 

If you have any questions on the payment instructions above, please ask your usual Chiene + Tait contact or email us at mail@chiene.co.uk for help.

For a pdf version of this guidance which can be downloaded or printed, click the Download button below.

VAT Matters – Spring 2021

The Spring 2021 edition of our VAT Matters newsletter is now available to download, some featured sectors include:

Construction and Property:

  • Our article on VAT domestic reverse charge for building and construction services is on page 6

Selling to EU Customers:

  • More VAT changes in the aftermath of Brexit on page 4

Registered for Making Tax Digital?:

  • An update on digital links and new guidelines in the wake of the COVID-19 pandemic on page 9

Other articles include:

  • An introduction by our VAT Director, Iain Masterton
  • Brexit – where are we now?
  • Important updates in our final section on pages 13 & 14

 

We hope you enjoy it!

If you have any comments or feedback about VAT Matters, please speak to Iain Masterton, VAT Director on vat@chiene.co.uk or call 0131 558 5800.

If you would like to be added to our mailing list to receive a copy direct to your email inbox please contact marketing@chiene.co.uk.

How we advise entrepreneurs

What gets our clients out of bed in the morning is what gets us out of bed in the morning: the chance to do great stuff, the chance to change something; the chance to be the bold and successful one.

In our case, that means supporting start-ups and investors creating the next generation of businesses. We supply specialist advice on business planning, specific tax reliefs, corporate finance and accounting systems and processes to Scotland’s exciting entrepreneurial and business angel scene.

Our Entrepreneurial Team are specialists in SEIS/EIS, R&D tax relief, structuring, share schemes, equity-raising, business growth, winning awards (EIS Association Awards, Scottish Accountancy Awards), financial modelling, exit planning and execution, building relationships with start-ups, scale-ups and spin-outs, working with angel groups and the business and accounting advice needed for growth. And success.

Bounce Back Loan – Pay As You Grow facility explained

Information about the Bounce Back Loan, Pay As You Grow facility is now available. This impacts UK smaller businesses that have taken out a Covid-19 Bounce Back Loan to help manage their cashflow as a result of the pandemic. Businesses first began to receive Bounce Back Loans in May 2020 and the first repayments will be due from May 2021 onwards.

Since May 2020, the scheme has supported nearly £45bn of loans to 1.5m businesses. Businesses can apply for a loan from £2,000 up to 25% of their business’ turnover, with a fixed interest rate of 2.5% for the duration of the loan, meaning all borrowers benefit from the same, affordable rate of interest. The maximum loan amount is £50,000, and the Government will make a Business Interruption Payment (BIP) to cover the first 12 months of interest payments. The borrower does not have to make any repayments for the first 12 months.

Chiene + Tait Alumni Newsletter – Spring 2021

We are delighted to publish the next edition of the Chiene + Tait alumni newsletter.

This Spring 2021 edition features articles on:

  • C+T alumni Jeremy Harper,
  • Welcome to our newest Partner, David Shadwell,
  • Going Concern issues during the pandemic,
  • Our new Future Of… series launched, and
  • Keeping a positive mindset – Dr Lena Wilson, C+T Chair gives some insight into developing a positive mindset during times of economic turmoil.

To download the newsletter, please click the link below.

If you have any queries about the newsletter, or event, or to be added to the mailing list to receive the newsletter automatically, please send your contact details to alumni@chiene.co.uk.

Chiene + Tait Tax Card 2021 – 2022

Our Tax Card 2021 – 2022 contains detailed rates of:

  • Income Tax (including Scotland Rate of Income Tax)
  • Annual Investment
  • National Insurance Contributions
  • Vehicle benefits and Tax-Free Mileage Allowance
  • Capital Gains Tax
  • Corporation Tax
  • Property Taxes
  • VAT
  • Inheritance Tax and much more!

Chiene + Tait Budget 2021 Analysis

Following the Chancellor’s statement, the key points from the Budget 2021 are summarised in our analysis here. With further information released on ‘Tax Day’ on 23 March, which is expected to see the publication of tax consultations which would traditionally have been published alongside the Budget, we watch this space for more details.

If you have a query about the announcements contained in the Budget, please feel free to contact our team today if you have any queries at mail@chiene.co.uk.

2021/2022 Payroll Calendar

Chiene + Tait has released our 2021/2022 payroll calendar detailing all the key dates you need to know. The calendar includes:

  • Bank and Public Holidays
  • PAYE and NI deadlines
  • P60, P9D and P11D dates
  • Self assessment tax return deadlines

Year-End Tax Review 2020 – 2021

Year-End Tax Review 2020 – 2021

As Coronavirus restrictions continue across the UK and with the potential of tax increases looming in the Budget set for 3 March, now is a good time to consider any changes that might benefit your tax and general business affairs. To help you decide the right path ahead, please find attached our Year-End Tax Review 2020 – 2021.

If you would like more specific advice on any aspects, please get in touch with your usual Chiene + Tait contact, or speak directly to a member of our tax team at mail@chiene.co.uk.

Direct Debit Mandate

Download and complete to instruct to your bank or building society to pay by direct debit.

Families – areas to consider before the 2021 Budget

With potential changes to Capital Gains Tax and Inheritance Tax in the pipeline, what steps should you take
now to be in a better financial position before the Spring 2021 Budget?

Our infographic outlines four tax areas for you to consider for your family. Contact our team today
for more information.

Business owners – areas to consider before 2021 Budget

With potential changes to Capital Gains Tax and Inheritance Tax in the pipeline, what steps should you take
now to be in a better financial position before the Spring 2021 Budget?

Our infographic outlines three tax areas for you to consider for your business. Contact our team today
for more information.

Covid-19 Self-employment Income Support Scheme Grant Extension – Update

The UK Government has agreed to extend the support offered to self-employed workers via the Self-Employed Income Support Scheme Grant with an extension in the form of two grants for the three month periods November 2020 – January 2021 and February 2021 to April 2021. Further details about the extension, updated on 06/11/20 can be found in this briefing.

VAT Matters – Autumn 2020

The Autumn 2020 edition of our VAT Matters newsletter is now available to download, featuring articles on:

  • Accounting for VAT on gift vouchers
  • VAT & Customs Brexit changes
  • Digital Services – VAT MOSS Updates
  • EORI Numbers post Brexit
  • Construction Services Domestic Reverse Charge – Changes for 2021
  • Zero rating for Social Media advertising for Charities
  • Change in HMRC policy in relation to compensation payments

We hope you enjoy it!

If you have any comments or feedback about VAT Matters, please speak to Iain Masterton, VAT Director on vat@chiene.co.uk or call 0131 558 5800.

If you would like to be added to our mailing list to receive a copy direct to your email inbox please contact marketing@chiene.co.uk.

Covid-19 Self-employment Income Support Scheme Grant Extension

The UK Government has agreed to extend the support offered to self-employed workers via the Self-Employed Income Support Scheme Grant with an extension in the form of two grants for the three month periods November 2020 – January 2021 and February 2021 to April 2021. Details can be found in this briefing.

Land and building tax by UK region

From the end of July the level of tax paid for land and buildings changed. Now, all UK regions have imposed different tax levels for land and buildings (Stamp Duty Land Tax in England and Northern Ireland, Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales). Our summary outlines the changes across the regions and for single or multiple dwellings. Please take advice on tax due to be paid before proceeding with any transaction.

VAT Rate Cut Factsheet

The Chancellor Rishi Sunak has announced a temporary 5% VAT rate which will come into effect from 15 July to 12 January 2021. Find out the details in our free factsheet here.

Coronavirus Job Retention Scheme Changes Infographic

Following the launch of the Coronavirus Job Retention Scheme (CJRS) earlier this year, the Scheme will change from 1 July onwards. From 1 July, employers can bring furloughed employees back to work for any amount of time and any work pattern.

Employers will still be able to claim the furlough grant for the hours the flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period.

Please find below further details on the changes to the Flexible Furlough Scheme (FFS). If you would like to know more about when the changes will happen over the forthcoming months, please download this CJRS infographic, or our CJRS Briefing here.

 

Coronavirus Job Retention Scheme Briefing – Updated 28/06

Following the launch of the Coronavirus Job Retention Scheme (CJRS) earlier this year, the Scheme will change from 1 July onwards. From 1 July, employers can bring furloughed employees back to work for any amount of time and any work pattern.

Employers will still be able to claim the furlough grant for the hours the flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period.

Please find below further details on the changes to the Flexible Furlough Scheme (FFS). If you would like to know more, please download our CJRS infographic here, which details the scheme and impact on employers.

Self Employment Income Support Scheme (SEISS) Briefing – Updated 23/06

The Self Employment Income Support Scheme is the Government scheme to support individuals who are self employed, or members of trading partnerships whose businesses have been adversely affected by COVID-19.

The scheme currently allows eligible individuals to claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. You must make your claim for the first grant by 13 July 2020.

The Chancellor has recently announced that the scheme is being extended. If your business is adversely affected by COVID-19 on or after 14 July 2020, and you meet the other eligibility criteria, you’ll be able to make a claim for a second and final grant worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. Find out more in our briefing here.

VAT Matters – Spring 2020

The Spring 2020 edition of our VAT Matters newsletter is now available to download, featuring:

  • Making Tax Digital (MTD) Digital Links requirement extension
  • COVID-19: VAT Deferral
  • VAT Initiatives to combat COVID 19 impact
  • Brexit: Are you ready?
  • Construction Services Domestic Reverse Charge – postponed

If you have any comments or feedback about VAT Matters, please speak to Iain Masterton, VAT Director on vat@chiene.co.uk or call 0131 558 5800. If you would like to be added to our mailing list to receive a copy direct to your door or email inbox please contact marketing@chiene.co.uk.

C+T COVID assistance

In times like these it’s important that we all pull together to help the business community.

We are offering free diagnostic reviews to help organisations test their preparedness for this crisis, and to assist with obtaining the various funding that is being made available.

Download our flyer for more information. Also check our guidance page for additional available support.

2020/2021 Payroll Calendar

Chiene + Tait has released our 2020/2021 payroll calendar detailing all the key dates you need to know. The calendar includes:

  • Bank and Public Holidays
  • PAYE and NI deadlines
  • P60, P9D and P11D dates
  • Self assessment tax return deadlines

A statement from our Managing Partner, Carol Flockhart on our business continuity plans for COVID-19.

The Budget 2020

Read our summary of the Budget 2020, delivered by Chancellor of the Exchequer Rishi Sunak on 11 March 2020.

IR35 and off-payroll to on-payroll: changes from 6 April 2021

From 6 April 2021 (previously postponed from 6 April 2020) the new Off-Payroll Working Rules will come into effect. Where workers are engaged through intermediaries (most commonly, personal service companies) will result in organisations undertaking greater administrative burden and potential financial risk to establish the employment status and payroll requirements. This is reform to the existing IR35 rules for the private sector which were introduced in the public sector in April 2017.

In summary, clients engaging via such intermediaries must decide whether the worker is akin to an employee (or office holder) if the intermediary was ignored. Where the worker is considered an employee, income tax and both employer’s and employee’s National Insurance (as well as apprenticeship levy) must be accounted for on the payments made to the intermediary. The introduction of these new rules pass the burden of ensuring the worker’s employment status is correct and accounting for any income tax and National Insurance due, to the organisation engaging where the obligation was previously that of the worker and the intermediary.

The legislation is still to be enacted but these changes are on course to apply to payments made from 6 April 2021.

To assist you and your business with these changes, our detailed guidance note is available by clicking the download button:

Year End Tax Review 2019 – 2020

Our Year End Tax Review 2019 – 2020 covers a number of points to consider prior to 5th April 2020. Download a free copy today and feel free to contact us if you have any queries regarding the information contained.

Connect Winter 2019

The winter 2019 edition of our newsletter Connect is available to download, featuring:

  • Promoting the next generation
  • VAT reclaim for self-builders case study
  • Using an app stack
  • Using data analytics
  • A perspective from inside Chiene + Tait on our work with HMRC
  • Using pensions
  • Our charity ImpaCT Day

We hope you enjoy it! If you have any comments or feedback about Connect, or would like to be added to our mailing list to receive a copy direct to your door or email inbox please complete this registration form.

VAT Matters – Autumn 2019

The Autumn 2019 edition of our VAT Matters newsletter is now available to download, featuring:

  • Cafe & Restaurant – Separate Businesses?
  • Church wins FTT case against HMRC
  • What is Crowdfunding?
  • Zero rating for charity advertising online

If you have any comments or feedback about VAT Matters, please speak to Iain Masterton, VAT Director on vat@chiene.co.uk or call 0131 558 5800. If you would like to be added to our mailing list to receive a copy direct to your door or email inbox please contact marketing@chiene.co.uk.

VAT Matters – Summer 2019

The Summer 2019 edition of our VAT Matters newsletter is now available to download, featuring:

  • Reduced VAT rating for energy saving materials
  • Sale & leasebacks – a tale of two courts
  • How should I claim VAT on fuel?
  • VAT recovery of employee legal fees

If you have any comments or feedback about VAT Matters, please speak to Iain Masterton, VAT Director on vat@chiene.co.uk or call 0131 558 5800. If you would like to be added to our mailing list to receive a copy direct to your door or email inbox please contact marketing@chiene.co.uk.

How do I import goods from outside the EU – now and after Brexit?

The way in which UK businesses buy goods from the EU will change once the UK leaves the EU. Our Brexit date has yet to be decided and it is likely that there will be a transitional period before we finally leave the EU, however UK businesses will have to consider the implications of how goods are imported from the EU now to access the impact this will have on their cashflow and from an administrative perspective.