Protaxes - Accountants & Tax Consultants

2022 Autumn Statement Summary

What is a Corporation Tax Return?

If your business is a limited company, you must file company tax return, officially known as Corporation Tax Return (CT600) to HMRC. This is irrespective of whether the business is profitable or not.

If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

Company profits that are subject to corporation tax include:

· Trading profits
· Income from investments
· Chargeable gains (selling assets for more than they cost)

To find out more, please click on this link: https://protaxes.co.uk/blog/corporation-tax-return-and-late-filing-penalties

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IR35 Tax Implications

The ‘IR35 rules’ may apply where a worker (who owns more than 5% of the ordinary share capital or distribution or assets in a company) who receives payment from the intermediary which can reasonably be assumed to represent remuneration for the services provided to the client, provides services under a contract between their own company and a customer where the income would have been treated as employment income if the worker had contracted directly with that customer.

Tax implication:

This rule prevents people from paying less National Insurance Contributions and income tax by operating through an intermediary company or personal service company than they would have to pay if they were employed directly by the same customer.

A number of criteria HMRC would look at when determining whether you would normally be treated as employee of the client.
For additional information please visit https://protaxes.co.uk/blog/tax-implication-of-ir35

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Q. What is the deadline to submit CJRS claims for July?

A. CJRS claims for July must be submitted by Monday 16 August.

Employers can claim 70% of furloughed employees' usual wages for the hours not worked, up to a cap of £2,187.50 per month. They’ll need to pay the difference, so that they continue to pay furloughed employees at least 80% of their usual wages in total for the hours they do not work, up to a cap of £2,500 a month.

Employers can still choose to top up employees’ wages above the 80% level or cap for each month if they wish, at their own expense.

Q. Why have I paid too much tax even though my income is less than £12570.

A. We have received a number of calls from people on PAYE. Most of them have been issued with OT tax code which is an emergency measure as HMRC does not have sufficient information about their employment. This means they are missing out on your tax-free allowance.

If you thunk this applies to you, please contact HMRC Income Tax Helpline 0300 200 3300. They will be able to put you on the correct tax code.

**Special offer* Self Assessment Tax Return £99 each**

If you plan to file CIS return, landlord tax returns, sole traders - get in touch today as this offer is valid only until 31st July 2021.

Here at Protaxes we understand the stresses involved in running a small business in ordinary times. Today, even more so businesses need all the help they can get to survive this difficult period. Hence, we are offering businesses massive discounts on our accounting services to help them get back on top of their finances.

Protaxes Accountants - based in South London (Sutton) with over 10 years’ experience providing quality services at a very competitive price. We charge a fixed fee therefore there are no hidden surprises.

Our highly experienced, dedicated and expert team will provide a hassle-free accounting services so you can focus solely on growing your business.

We help start-ups, sole traders, small businesses, freelancers and Limited companies with their monthly accounts.

Our services include:
• Statutory end of year accounts
• Monthly management accounts
• Bookkeeping
• VAT returns
• Monthly payroll
• Corporation or partnership tax return
• Self-assessment tax return
• CIS returns

Call Ash today - Chartered Certified Accountant
ACCA, MSc, BSc (Hons), MAAT at 07879845669 & 07462803703 for free consultation. Visit us at Protaxes.co.uk or drop us a line at [email protected]

Special offer - **Free company formation ** If you plan to start your business venture, I would advise you to be quick as this offer is valid for a limited period only.

Protaxes Accountants - based in South London (Sutton) with over 10 years’ experience providing quality services at a very competitive price. We charge a fixed fee therefore there are no hidden surprises.
Services include:
• Company annual accounts and filing with Companies House and HMRC
• Confirmation statement
• Company year-end Accounts and Corporation tax returns
• VAT returns per quarter & registration
• Bookkeeping weekly, monthly & quarterly
• Payroll
• HMRC queries handling
• Business address Changes
• Company Formation and Closure
• Registrations for Self-Assessment, VAT and PAYE
• CIS Tax returns

Please call 07879845669 & 07462803703 for free consultation. Visit us today at Protaxes.co.uk or drop us a line at [email protected]

Q: What is a UTR Number?

A: This is a ten digit ‘Unique Tax Reference’ which is required in all cases in order to file a tax return online.

HMRC uses your UTR number to keep tabs on your tax obligations. It provides them with an easy way to match records to payments and monitor for suspicious activity. You'll need your UTR number to complete self-assessment tax returns and pre-pay taxes in instalments. This is also required at other stages, including tax calculation and payment summary.

If you don’t have a UTR number, we can advise you on how to apply.

Please note that obtaining this number can take up to six weeks, so it should be applied for as soon as receiving our advice on the method applicable to your circumstances.

Thousands of couples are owed money in Marriage Allowance relief. You could be one of them!

Q. What is the marriage allowance?

A. Marriage allowance is a tax relief available to couples who are married or in a civil partnership, where one low earner can transfer £1,260 of their personal allowance to their partner.

This reduces their tax by up to £250 for the 2020 to 2021 tax year.

To be eligible:

A. Marriage allowance is a tax relief available to couples who are married or in a civil partnership, where one low earner can transfer £1,260 of their personal allowance to their partner.

- Be born after 5 April 1935. If one or both couples are born before this date, you should claim
the ‘married couple’s allowance’ instead.
- The low earning partner’s pay before tax must be less than the personal allowance - which in
2021-22 is £12,570.
-Higher-earning partner’s salary must fall between £12,571 and £50,270 (the threshold for higher-rate payers).

In Scotland, the thresholds for basic-rate payers are different, so the higher-earning partner’s salary would have to be less than £43,462. Those claiming marriage allowance in Scotland can continue to do so at the current rate of 20%.

q. For how long can I backdate the claim?
A. Yes, one good news is you can backdate your claim for up to four years!

You can backdate your claim to include any tax year since 5 April 2017 that you were eligible for Marriage Allowance.

Hurry up! If you delay, you will lose earlier tax year relief as it would be more than 4 years.

Please get in touch if you would like our assistance. We are here to help you maximize your tax savings.

Q. What are the CJRS eligibility criteria for claim periods from May?

A. Those employees who were previously ineligible for the CJRS, as they were not on their payroll on 30 October 2020, they may be eligible for periods from 1 May 2021 onwards.

For claim periods from May, employers can now claim for eligible employees who were on their PAYE payroll on 2 March 2021. This means they must have made a PAYE Real Time Information (RTI) submission between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.

Clients and their employees do not need to have benefitted from the scheme before to make a claim, as long as they meet the eligibility criteria.

Budget 2021 Headlines - Grant and Taxes

Universal Credit: £20 weekly uplift in Universal Credit worth £1,000 a year to be extended for another six months.

Working Tax Credit claimant will get one off £500 payment.

Newly Self employed: Those started trading in 2019/20 tax Year and submitted tax return before 2nd March 2021 will be eligible for 4th grant in late April and 5th Grant at the end of July.

Self Employed Support Scheme: Extended until September 2021. Fourth grant will open from late April. 5th grant will remain at 80% if the turnover reduction is 30% or more. But if the reduction is less than 30% then 30% of the 3 months average trading profits capped at £2,850.

Furlough Scheme: extended until the end of September. Eligible employees will receive 80% of their usual salary up to a maximum of £2,500/month end of June. Thereafter, employer will contribute 10% in July and 20% in August and September 2021.

Tax-free personal allowance: is frozen at £12,570 from April 2021 levels to 2026

Corporation Tax Rate: 19% rate would exist until March 2023 for all companies. Thereafter, companies with profits of less than £50,000 will continue to pay 19% corporation tax. However, companies with profits over £50,000 to £250,000 will pay at Marginal rate. Companies with Profits of over £250,000 will pay full rate of corporation tax at 25%.

Business Restart Scheme: Non-essential retail businesses will receive grants of up to £6,000. Both hospitality and leisure businesses will get grants of up to £18,000.

Business Rates Holiday: Will continue until June. Then 75% discount on rates for all businesses.

VAT: Lower VAT rate for hospitality firms to be continued at 5% until September. Then interim12.5% rate will apply for the following 6 months.

Super Deduction: Claim capital allowance at 130% on qualifying plant and machinery investments.

Minimum wage: increase to £8.91 an hour from April

Contactless payment: limit will rise to £100 later this year

Stamp duty holiday: on house purchases in England and Northern Ireland extended to 30 June 2021. Exemption from stamp duty for residential properties sales of less than £500,000

Apprenticeship Hire: £3,000 one-off grant for each apprentice until September 2021.

Q: If I use my car for business, as well as private use, what expenses can I claim?

A: If you are self-employed one of the most common expenses is running your vehicle, simply add up the miles travelled exclusively for business and compare this with the total miles travelled in the tax year. This will enable you to work out the business use percentage. For example, if the total cost of running your car is £10,000 a year and 50% of the use of the car is for business, you may claim £5,000 as an expense.

Q: Can you prepare and submit a late or previous year tax return?

A: Yes, within the scope of our service we can go back and file online up to three tax years preceding the current due tax return. Earlier tax returns cannot be filed online and have to be produced for manual signing and posting to HMRC. The contact us button will take you to the Protaxes website where you can find more information about it. If you have multiple tax returns to submit, we can still help you with that. Don't delay, get in touch today.

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