Share This Post

With only one more month before the close of the tax year, March is the month to ensure that you have all your ducks in a row and consider what you need to do to ahead of another tax year ending.

This month Rishi will announce his spring budget on the 23 March.

WE’RE MOVING

t’s time for us to depart our beautiful offices on Duffield Road, as we move around the corner from 2 March.

Our new address will be: Suites 6 & 7 The Mill, Lodge Lane, Derby DE1 3HB.

We look forward to welcoming you around for a cuppa, or something stronger!

t’s time for us to depart our beautiful offices on Duffield Road, as we move around the corner from 2 March.

Our new address will be: Suites 6 & 7 The Mill, Lodge Lane, Derby DE1 3HB.

We look forward to welcoming you around for a cuppa, or something stronger!

CLIENT HAPPINESS SURVEY

Our drive to support you means that your happiness is paramount to us; please could you let us know how happy you are and if we’ve contributed to your happiness.

We’d love to know what we’re doing well.

Similarly if we haven’t made you happy or worse done something that’s made you unhappy please let us know as we’re striving to continually improve.

Our survey shouldn’t take you too long to complete and we’d be ever so grateful! Complete it here.

WHEN IT COMES TO R&D – TIMING IS KEY

In this email we want to share the optimum time to make your R&D Tax Relief claim, and the deadline exceptions that could save your claim…although with us, you shouldn’t need them!

Hopefully, you are aware that the hard and fast deadline for making a claim is:

“Two years AFTER the end of the accounting year in which you incurred the costs.”

Pass this date and it’s game over….the money has gone.

We know that business circumstances change, and the last thing we would ever want is for you to miss out on money that belongs back in your business. But when it comes to R&D, timings are key!

WHEN IS THE OPTIMUM TIME TO MAKE AN R&D CLAIM?

Making sure you claim at the optimum time depends on the bottom line, ultimately whether or not you made a profit:

· If your company made a loss and you want to get some cash back into the business asap, the answer is simple; make your claim as soon as possible, which is when your accounts and tax return are prepared and ready for filing.

· If your company has made a profit, the benefit will come by reducing your tax bill which is due nine months and one day after your year end. So get the claim finalised before the tax due date, and you’ll pay less tax, instead of paying it and reclaiming it back later.

THREE R&D DEADLINE EXCEPTIONS

Although the deadline for making an R&D claim is definitive, there are three R&D claim deadline exceptions to bear in mind; these are:

· If your company has an extended year end

· If your tax return was filed late

· If HMRC has an enquiry open with you


For a more detailed explanation and examples of the deadline exceptions, and the optimum time to claim your R&D claim, check out this blog.

IT’S NOT WHAT YOU EARN…. IT’s WHAT YOU KEEP!

It’s that time of year again! We are approaching the end of another financial year and it is an appropriate time to remind you that there are still opportunities to minimise your tax burden for this year.

Interested in understanding how you can extract money more efficiently, then do get in touch and we would love to run our 32 Ways to extract value diagnostic with you.

DON’T LOSE YOUR 2021/22 PERSONAL ALLOWANCE

For every £2 that your adjusted net income exceeds £100,000 the £12,570 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%. The restriction applies between £100,000 and £125,140 adjusted net income.

CONSIDER A SALARY SACRIFICE SCHEME

Another way that you could avoid the personal allowance trap and also reduce income tax and national insurance would be to agree to sacrifice some of your salary in exchange for a tax free, or low tax benefits in kind. Common examples would be additional pension contributions or providing an electronic company car in exchange for a lower salary.

REDUCE CARBON EMISSIONS & SAVE MONEY

Derby City Council has a DE-Carbonise programme, which could help your business reduce your energy use (and therefore bills) and save carbon.

Grants are available for companies in business premises within Derby City Council boundaries as long as they meet the definition of small to medium enterprises.

You can read more about the project, including eligibility information and case studies here.

BUY NEW EQUIPMENT BEFORE 6 APRIL

Your business year end, not 5 April, is relevant for capital allowances purposes.

If, however you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA).

The AIA provides a 100% tax write off for new and second hand equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars but there is a special 100% tax relief if you buy a new zero-emissions motor car.

If you are running a limited company, remember that new plant and equipment currently qualifies for a 130% tax deduction.

VAT RATES FOR HOSPITALITY SECTOR DUE TO INCREASE FROM 1 APRIL

Early in the COVID-19 pandemic, the Chancellor reduced the rates of VAT for the leisure and hospitality sector to just 5%. That reduced rate applied from 15 July 2020 until 30 September 2021 when the rate was increased to the current 12.5%. However, the rate is scheduled to revert to the normal 20% rate from 1 April 2022.

The businesses affected by the temporary rate reduction are those

· supplying catering services including restaurants and takeaways

· operating hotels and providing holiday accommodation and

· operating leisure attractions such as zoos and theme parks

Businesses should listen to the Chancellor’s Spring Statement on 23 March in case he announces an extension of the 12.5% rate. We’ll summarise following the release too.

If there is a change announced on 23 March, there will only be a limited amount of time to implement changes to prices and VAT accounting.

For businesses using the VAT Flat Rate Scheme, the flat rate percentages will revert to the pre 15 July 2020 amounts if the VAT rate reverts to 20% from 1 April 2022.

Share This Post

More from Vibrant