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: [email protected] 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.