There have been a lot of worried business owners following the announcement around company tax rates increasing from 19% to 25% in 2023.

While this is a significant jump in company tax rates, this increase does not apply to all businesses. There are lots of complicated articles explaining how this will affect businesses but if you are looking for a quick, simple explanation, we have one for you!

Russell Silverman, the Director at Silver Consultants Ltd has been inundated with queries regarding whether the tax hike will affect their businesses.

He explains how the future company tax rate increases will impact different businesses:

From April 2023 a company pays tax at 19% if it makes £50,000 or less.

If the profit is £250,000 or more it pays 25%.

For each £1 profit between £50,000 and £250,000 you pay an extra 26.5 %.

If you have any more questions about the company tax rates in 2023 and how the changes will impact your business, Russell would be happy to discuss this in more detail.

You can call him on 07834 049316 or email: russell@silverconsultants.co.uk or fill in your details in our contact form.

Want to know how to pay less tax when you buy a commercial property?

You know what it’s like when you buy a house…

You get excited
You do it up in your own taste
You invite people round
Have a housewarming party

It’s the same when you buy a commercial property with one big difference – you can save tax!

You can reduce your tax bill by claiming for assets you can move around like computers, tables, chairs, machinery and more.

Most companies do this to help improve their finances.

From April 1 this year, for two years, you even can claim a higher ‘ super – deduction ‘ which reduces tax more than before.

You can also claim ‘ Embedded Capital Allowances ‘

It’s claiming what would be left if you turned the building upside down.

Like the infamous R and D tax credits, most people don’t know about this and are missing out on the tax reduction that is available.

Who can claim Embedded Capital Allowances?

A company can claim and, unlike R and D  so can individuals.

There’s no time limit either so you can claim for historical allowances.

Do you own a commercial property?

Have you imagined it upside down and saving you tax?

Do you know about Embedded Capital Allowances? Find out more about what Embedded Capital Allowances are and how we can help you to save tax on your commercial property.

Have you ever wondered what an accountant does? Or do you think that you are pretty sure you know everything about the activities that an accountant gets involved in?

A couple of weeks ago I attended a ‘ one-off ‘networking event.

The guy in charge told me I didn’t need to talk about my accountancy work as ‘everyone knows what they do’.

So instead he encouraged me to talk about my other main business activities –

• R and D Tax Credits
• Huge tax savings for limited companies where most qualify but don’t know about it
• Embedded Capital Allowances
• Huge tax savings for commercial property owners where most qualify but don’t know about it
• Personal Guarantees
• Helping those having to pay out personally on guarantees where a company can’t settle a debt.

In the majority of cases, we can achieve a reduction of the amount payable.

So I asked my #moveonline group yesterday what an accountant does, and they did pretty well. Then again they are a very clever, worldly-wise, bunch!

But do you know what an accountant does? (apart from balancing drinks on his head!?).

Please tell me what you think.

There may be something I don’t know ?

Thanks in advance …..

SELF EMPLOYED?

HERE’S A HORRIFYING GLIMPSE INTO THE FUTURE:

It’s April 2023

George is in the pub with John.

John gets the round in and starts the conversation.

‘How’s it going lad?’ he asks.
‘Sound thanks’ says George.
‘How are you coping with the new tax system?‘ says John.
‘How do you mean?‘ replies George.
‘You know, all self-employed people having to submit their figures to HMRC digitally’ says John.

‘I didn’t know that!’ replies George.
‘Honest, it’s true ‘ says John ‘and you have to send them in quarterly and then one more time after the end of the tax year to balance up’.
An ashen-faced George desperately rushes off to find an accountant leaving his drink for John to finish.

This isn’t fiction.
It’s not a horror film set in the future.
It’s actually happening.
If you’re self-employed you will have to be far more organised than you possibly are now.
You will need to send figures to HMRC five times a year instead of one.
You will need to submit your accounts digitally.

2023 will be here before you know it
Remember who warned you first about the upcoming digital tax submissions….

If you intend on being self-employed in 2023, now is the time to start getting prepared so that you know exactly what is required of you from April 2023.

Fortunately, I have a lot of knowledge regarding the upcoming changes and I would be happy to give you some advice and help you to get organised in time for the digital tax submissions.

If you need some guidance, please contact me.

Are you making good money?

Do you have a number of income streams and be fortunate enough to be in a higher tax bracket?

Are you employed as well as self-employed?

If so, you need to plan carefully.

There are three levels of tax in the UK 20%, 40%, and 45 %

There are all sorts of National Insurance levels depending on income, and if you are employed or self-employed.

However, without good tax planning, those who have a ‘ proper ‘ job ( where you get a wage ) and are also self-employed, could be effectively losing either 49% or even ( gasp ) 54% on their self-employed income.

No jokes today – just a health warning.

Are you in danger of paying more than the basic rate of tax?

Do you like HMRC so much that you want to give them all this money?

Contact us to discuss your tax planning for several income streams.

How opening a business can save you tax

A story about how Angela followed her dreams and also managed to save tax in the process

Angela had planned to open a business for a long time.

She had set up her limited company and saved lots of money, so she didn’t need to take any money out of the business for a couple of years.

But then she met Russell who told her that even if she didn’t want any money immediately, she could save tax now and be owed money to pay herself in the future.

After a chat with him –

She processed a salary for herself of £737 per month. (£8,844 a year)

This meant there was no tax for her and a £1,680 tax saving for the company.

It also counts as if she had paid her National Insurance, so she gets the benefits even without paying anything.

She then voted herself an annual tax-free dividend of £2,000.

And … another dividend of £3,726 to cover the difference between her salary and the £12,570 she can have tax-free each year.

Angela was delighted, she was £14,570 better off and the company saved £1,680.

Win win win for Angela.

Lose lose lose for HMRC.

Would you like to be like Angela and have that free money?

Would you like to be like Russell and tell the world about the free money ?

What would you spend the money on?

Here’s her accountants with her pay cheque, giving it to her dog to take home…

Yeah right, you say cynically. Why would they do that?

They are here to take money off you. You aren’t going to get it back.

But there are R and D tax credits. It might be a Government reward but it’s HMRC who pay out the refunds.

Ok you may say, perhaps R and D. But that’s a ‘ one-off ‘

Well no actually, all you doubters. Stop being negative and miserable.

Open your minds to another type of tax saving ……

Make way for …….

Capital Allowances ???

It is estimated that an average 26.5% of the cost of a commercial property qualifies for a tax claim.

Like R and D, this is another, often misunderstood, tax saving, where refunds are there just waiting for businesses, burning a hole in HMRC’s pocket.

Most qualifying businesses don’t know about it.

Thousands and thousands of £’s are not being claimed from HMRC

Do you own a commercial property?

Do you like tax refunds?

How about asking the guy on the right of this picture about the connection between the two?

He’s at a ‘ Capital Allowance party ‘ celebrating a huge tax refund – the next one could be yours …..

MY GUILTY SECRET

I have a guilty secret.

No one knows about it, not even my closest family and friends

But it’s time to get it off my chest. I can’t live with it any longer.

It relates to Confirmation Statements.

They aren’t anything to do with religion, nor saying you will definitely be somewhere.

They are an annual document filed at Companies House for Limited Companies.

They confirm matters such as Registered Office, Directors and Shareholders

Companies House charge £13 to file the confirmation statement.

And my secret?

I love filing them for clients.

It makes me happy.

I don’t even charge my time for filing them as it’s such a thrill.

Is there something wrong with me?

Do I need to attend Confirmation rehab?

Do you like filing Confirmation Statements?

What are the benefits of marriage ?

Some are ….

• Love
• Companionship
• A chance to change a surname you don’t like
• Presents from the other half’s family at Christmas
• Someone to blame when you don’t want to go out

But here’s another good reason-

You can get a tax refund !!

Everyone gets a tax-free annual personal allowance. This year, for most people, it is £12,570.

If you don’t use all of yours, you can transfer some of it to your spouse.

And they can receive a tax refund of up to £252 per year.

If you qualify, you can backdate it 4 years (as long as you were married then of course).

How amazing is that?

This transfer between husband and wife (or vice versa ) is imaginatively called ‘Marriage Allowance ‘

Would this make you get married?

Would you prefer to be skint and single?

HAVE YOU EVER OPTED TO TAX?

Non-essential shops are now open now, so you can buy furniture, TVs, clothes and lots more stuff that’s actually really essential – except in a pandemic.

But have you thought about buying your other half a non-essential building for their next birthday or Christmas?

Relationship counsellors say that this is the secret of a successful long-term union!

Instead of a dream holiday, or a car, why not buy them a factory or another commercial property?

Imagine their delight when you take them to an industrial estate and show them the surprise! There are few romantic gestures of a bigger scale!

But don’t forget to ‘opt to tax‘ if necessary.

If a building is sold with VAT on it then you need to ‘opt to tax’ to save paying the VAT on the acquisition, and any other future costs.

If you don’t opt to tax, it will cost you 20% more, and that might ruin the occasion.

It’s regularly forgotten – until the last minute.

Have you ever opted to tax?

Are you going to buy a factory as a present?

Will you remember that a factory is for life, not just for Xmas?

Want to find out more about how Opt to Tax works? Contact us for more details.

Here are some men, with big brains and big files, working out 20% VAT.

SPOT THE ACCOUNTANT

What do these titans of LinkedIn have in common?

Tom Phillips
~ Rhian Anstey ~
Andrew Jancey “AJ”
Edward Williamson
Janine Mitchell
Victoria Jones, ❤️ Employee Health Geek (she/her)

Answer – none of them are accountants!

However, unlike eg doctors or social workers, anyone can set up as an accountant.

How to spot an qualified accountant:

• Qualified accountants pass lots of hard exams over many years
• They also receive continuous accountancy training
• Proper accountants are properly insured
• Accountants are highly regulated

There is also a Qualified by Experience certification –

5 year’s public practice experience plus other requirements.

As for the others –

It’s the Wild West, they can do what they want, and be really cheap as they don’t have to pay for all this.
If they do anything wrong there’s no one to tell them off, so if they give you the wrong advice or make mistakes on your accounts, there is nobody to hold them accountable when they are not regulated.

So, like asymptomatic people with Covid, you can’t always tell if they have it or not (the qualification as well as the virus).

As with everything else in life, it’s advisable to do your research so you know what’s on offer and whether your accountant has the accountancy qualifications and regular training required.

Do you know if your accountant is good enough for you?

Are they hiding a secret?

Would you let an unqualified mechanic repair your car or an unqualified doctor perform surgery on you? If the answer is yes, you probably are not too concerned about using an unqualified accountant!

A VAT THRILLER

It’s March 2020 – your business is closed. Your future is uncertain. You have a VAT bill to pay.

Then there’s an announcement.

Don’t worry you can pay the VAT bill next year. Phew ?

It’s March 2021 – it’s been a tough 12 months. You are told you have to pay that VAT bill from 12 months ago at the end of this month. You haven’t got the money to spare.

It’s April 2021, you still haven’t paid that 2020 VAT bill due last month.

Don’t worry, you can apply online to pay it by instalments, even though it’s late.

Phew ? again!

And Phew ? in May, and in June (up to the 21st) you can apply then as well.

Have you not paid last year’s VAT bill?

Did you know about instalments?

Are you saying Phew ? ?

Let’s celebrate paying your VAT bill by instalments!

SAVE TAX IN A PANDEMIC

Great news that businesses reopened recently, let’s hope that’s the last time they have to close.

It’s maybe too exciting yet to talk about taking advantage of the situation to save tax, but here’s a couple of ways in which those nasty tax bills can be reduced because of the lockdown –

1 . If you have a Limited Company – consider changing your financial year end.

If you have been closed then it’s extremely likely you have lost money whilst shut. You will be able to use that loss to reduce your tax bill and by changing the year end may be able to increase that loss!

2 . Reducing tax bills from previous years and getting a refund

This for the self-employed as well.

Before the last budget, you could use a loss to reduce last year’s tax bill.

Now you can go back 3 years (temporarily) so if you use up last year’s profit, you can claim against the year before that, or even the year before that one.

Would reducing tax, or a refund, help your business?

Do you know someone who can work out the sums to see if this will work?

Are you just too thrilled at being open to be bothered?

Here’s a man working out tax refunds on his phone in a beer garden whilst his PA shelters him from the sun.

If you want me to help you to save tax in a pandemic, call me on 07834 049316 0r send me a message and I can call you back when you are ready to talk about reducing your business tax bill.

THE INLAND REVENUE SALE CONTINUES

Is it a bird?
Is it a plane?
No, it’s …… Super-Deduction ?

Until March 31 2021, if a limited company bought equipment, it reduced the tax bill by 19%.

From April 1 2021 it’s now called ‘Super – Deduction’ and enhanced by 30% to 24.7 % for anything bought up until March 31 2023 ?

More generosity from our Charitable Chancellor ?

Capital Equipment includes –

• Plant
• Machinery
• Tooling
• Computer Equipment
• Furniture
• Software
• Commercial Vehicles (vans/lorries etc.)

Spend £100,000 and save £24,700 in tax instead of £19,000!

But here’s a health warning ⚠️

When you sell that equipment there’s a tax bill.

After 1 April 2023 that tax bill increases substantially.

So plan this carefully with a proper accountant/tax professional, so there’s no nasty surprises in a couple of years.

Are you going to experience a super deduction?

Will it make you more attractive to men/women/both when you talk about your new enhanced equipment?

Do you like saving tax?

You can find out more about the super-deduction on the Government website, or give us a call if you would like to get sone advice on how this impacts your business and your future tax bills.

6 April 2021 marks the new 2021 tax year and hopefully you will by now have recovered from your Tax New Year’s Eve celebrations!

There has not been huge cause to celebrate this year, although there are some changes to tax allowances you should be aware of.

From 6 April 2021 …

You can earn another £70 without paying tax. That gives you an extra £14 a year. Wow!

You can earn an extra £200 without paying higher rate tax. That’s worth another £40 a year. Outstanding!

Many Directors pay themselves £732 per month, which is the maximum possible amount at which the Tax and National Insurance bill is zero.

This increases to £737 per month from today, another £60 a year. Fabulous!

(by the way at this salary, you qualify for the benefits of National Insurance, even though you don’t physically pay anything, another free gift from HMRC).

So we are all a lot richer now.

Do you feel wealthier?

How will you spend all this extra money?

Here’s how an accountant celebrates this windfall with champagne:

A man of many talents

Are you a company Director?

Has your business borrowed money?

Were you asked to sign several pieces of paper when you obtained the finance?

Do you know if one of them was a Personal Guarantee?

Do you know how much money you are guaranteeing?

Do you know what happens with a PG when a company can’t pay a debt?

Do you know you could have to sell your house?

Is your company unable to pay the debt?

Do you need to ask someone to help you?

Just over a year ago I did a short presentation which included these questions.

As I was leaving I was collared by a man, who had a work colleague who had answered ‘ yes ‘ to all the questions.

But he had no one to help him.

Later that day, I called his colleague.

We helped him, the call started a chain of events that saved him £20,000.

Have you got a PG?

Are you concerned about it?

Are you being asked to pay a company debt personally?

Would you like us to help you? Just get in touch for a chat and hopefully we can do the same for you.

Let’s get it for you !!

One of my missions in life is for as many businesses as possible to receive a tax refund for R & D tax credits

It’s a Govt incentive paid as a tax reduction for limited companies. Qualifying activities are usually considered normal by business owners.

There are hundreds of thousands of £’s of unpaid tax credits in HMRC bank accounts.

Are you a business owner who knows about this opportunity and is missing out?

Are you worried you don’t fill the criteria to claim or don’t have the knowledge to do so?

It’s not a trick, there’s no catch

Announcing our solution to your problems ( drumroll please ) ?

Multi award winning business consultant Tracy-Jane(TJ) Duncan-Moir of Business Glu

She successfully carries out, in a relaxed friendly manner, the work for companies whilst enabling them to get on with their day job

She extracts and compiles the info to deliver to the specialist to get you the tax refund, while you carry on making money in your business the way you know-how.

If you haven’t got the time, then let TJ do the work for you

Can you afford to ignore a tax refund ?

Would you like us to make it easy for you?

Here’s TJ smiling her way to success…

HIDDEN TREASURES

We all like to find something valuable that others don’t know about.

Some of us travel the beach with metal detectors or dive into deep water to find the cargo of sunken ships.

In business, there are some hidden away as well.

The R and D tax credit is a strangely unknown potential tax saving for Limited Companies. It can provide a substantial financial boost to a business for, what seems to be, a straightforward activity.

But here’s another one –

The SSAS – small self-administered pension scheme.

Instead of your pension being locked away, similar to R and D, it can help develop your business. It has the same tax benefits as a ‘regular’ pension but you are in control.

Some features –

It can –

Purchase commercial property
Lend money to the business
Enable the business to pay rent into the scheme
It can create a valuable fund for your future and a legacy for future generations.

My good friend Neil Ryder is a specialist in this area , why not contact him today ?

Do you want to provide for your retirement?

Do you want control of your pension?

Here’s the handsome, friendly, face you will see when you speak to Neil Ryder on Zoom.

WHO WANTS £100,000?

Jamie owned a call centre. He wasn’t looking forward to today.

The new accountant was coming. He thought it would be boring.

Some guy in a pinstriped suit, what would he want?

The accountant arrived. He was a lot better than Jamie had expected.

He asked about the IT. Was it ‘ off the shelf? ‘

Jamie explained, in lots of detail, that they had acquired ‘ normal ‘ software but then had spent time, and money, adapting it to make the business more efficient.

The accountant then explained about R and D tax credits, a big tax saving for Limited Companies, and how Jamie’s business would qualify because of his systems, even though to Jamie it was just a normal sensible way of developing the business.

A few weeks later Jamie’s business received £100,000 from HMRC.

He looked forward to seeing the accountant after that.

Has your business been developed like Jamie’s?

Would you like £100,000?

Do you like your accountant?

Here’s Jamie’s accountant celebrating another big tax refund.

THAT VAT BILL FROM LAST YEAR

Just to clarify ….

It’s not called ‘The Third VAT’ (suggesting there’s a first and second VAT)

Or ‘The furred VAT’ (like an animal)

It’s ‘Deferred VAT’, the VAT payment that was put off this time last year by the kind permission of Rishi Sunak.

A year later it’s decision time about paying. If you are paying in full it needs to be by March 31.

If you can’t pay it in full, Rishi’s generosity is even more extravagant.

He will let you pay it off over as much as 11 months, depending on when you apply for instalments.

To pay monthly you have to ask by June 21.

Any other requests for time to pay, you need to agree with HMRC by June 30.

As for all other VAT, it’s the usual rules.

You can be late once for free, then have to be on time for a year or there’s a ‘surcharge’ (unless your annual turnover is less than £150K, then you get two free goes).

And that’s all the exciting VAT news….

Are you going to pay your VAT in instalments?

Did you realise that VAT is this thrilling?

Can you spell VAT?

Here’s the ‘ Third VAT ‘ party …. where you drink gin out of a watering can in a shed

PAYING TAX MADE MORE FUN – EPISODE 3 – THE GRAND FINALE

So you have a tax bill due at the end of the month.

You don’t want to pay it because you need the money, or just want to keep it back for something more useful than (urgh) tax. ?

You don’t want to pay HMRC by installments because –

• You don’t want to owe them money
• You don’t like HMRC
• You don’t like the fact that one missed payment means the whole amount is payable
• Interest on the installments isn’t tax-deductible .

Well ….. I have another option for you ?

There are finance companies who will lend money to enable tax payments to be made, and you pay them back over 12 months.

It’s a bit like financing a car, but not as nice.

This loan interest is tax-deductible.
You’re borrowing from humans, who will talk to you like an adult if there’s a problem.
If you miss a payment HMRC won’t label you as a ‘bad payer’.
It’s an opportunity to form a business relationship for the future with the finance company.
You don’t owe money to HMRC.

Would you like to meet a broker who can arrange this?

Have you enjoyed this series?

Do you think tax payments are more fun now? ??