HMRC has delayed planned changes to real-time information (RTI) reporting requirements for employee hours worked. Draft legislation was published in May aimed at improving the range of data collected by HMRC. The proposed changes will require businesses to provide more detailed information to HMRC via self assessment (SA) and PAYE
HMRC has published draft legislation explaining how the abolition of the special tax rules for furnished holiday lettings (FHLs) will work. From 6 April 2025 for sole traders and partnerships, or 1 April 2025 for companies, properties currently classed as FHLs will no longer benefit from tax reliefs not available
From April 2026, sole traders and landlords with qualifying income over £50,000 will have to comply with the Making Tax Digital (MTD) for Income Tax requirements. Quarterly updates Mandated taxpayers will need to use third party MTD-compliant software to keep digital records and file quarterly summaries of their income and
Certain types of company are not eligible to apply the small profits rate for corporation tax, regardless of their profit levels. On 1 April 2023, the main Corporation Tax (CT) rate was increased from 19% to 25%. A small profits rate of 19% was introduced for companies with profits below £50,000
HMRC is no longer automatically issuing cheques to refund PAYE overpayments. It is common for employed taxpayers to get to the end of the tax year and find that they have under- or over-paid income tax via PAYE. These discrepancies are calculated by HMRC at the end of the tax
Providing a nursery can be a powerful way to attract and retain staff, with childcare costs in the UK among the highest in the world. Tax relief is available to employers providing workplace nurseries as long as certain criteria are met. These requirements are strict; many childcare provision schemes fall
HMRC has completed a long-overdue overhaul of the forms and associated guidance used to report chargeable events on which inheritance tax (IHT) is due on a trust. Previously, if you needed to report IHT due on gifts or trusts you had to complete the ‘one-size-fits-all’ form IHT100 and submit this
The Chancellor has announced that the main rate of secondary Class 1 national insurance contributions (NIC) for employers will increase by 1.2 percentage points from 13.8% to 15% from April 2025. The Class 1A and Class 1B employer rates (relating to benefits) will also increase in line with this. As
The rates of capital gains tax (CGT) payable on gains arising from assets other than residential property have been increased with immediate effect. Rates Those taxpayers who decided to accelerate planned investment disposals before the Budget in anticipation of the predicted CGT hike will be pleased with their decision.
Showing renewed commitment to promoting electric vehicles over petrol, diesel and hybrid models, the Government has extended the 100% first year allowance for zero-emission cars. Businesses and individuals can continue to deduct the full cost of zero-emission vehicles and electric vehicle charge-points from their taxable profits until 31 March 2026
Reversing the previous Government’s u-turn on the tax treatment of double cab pick-ups, they will revert to being treated as cars for certain taxation purposes from April 2025. If you purchase a double cab pick-up with a payload of one tonne or more before 1 April 2025 for corporation tax,
The Chancellor has extended the current freeze on inheritance tax (IHT) thresholds until 2030 and announced changes to the treatment of inherited pensions and other IHT reliefs. The nil-rate band (NRB) is the amount of any estate that can be inherited tax free. It has remained at £325,000 since April
The stamp duty land tax (SDLT) surcharge levied on purchases of second and subsequent homes has been increased from 3% to 5% with immediate effect The higher rate applies to purchases of second homes and buy-to-let residential properties. The change applies to purchases with an effective date on or after
Private schools will need to register for VAT and charge output VAT on education and boarding services when the exemption that currently applies is removed from 1 January 2025. All education and boarding services provided by a private school or connected person will be subject to VAT at the standard
As expected, the Chancellor has confirmed the abolition of the generous tax regime enjoyed by non-UK-domiciled individuals, or ‘non-doms’ Broadly, the current rules apply to a UK resident whose permanent home – or domicile – for tax purposes is outside the UK. These individuals do not pay UK tax on
The UK hospitality industry, a key pillar of British culture, faces increasing pressures from rising costs, evolving consumer preferences, and regulatory shifts. For many struggling establishments, knowing when and how to restructure can be the key to survival. Here’s how you can navigate financial challenges and position your hospitality business
HMRC has clarified the rules relating to capital allowances claims in mixed partnerships, confirming that all partners subject to corporation tax are eligible for enhanced capital allowances. Corporate taxpayers are entitled to certain accelerated capital allowances such as full-expensing and the super-deduction that are not available to individuals subject to
The zero rate of VAT has been extended to include the installation of additional energy-saving materials (ESMs) from 1 February 2024. The installation of certain specified energy-saving materials (ESMs) in residential accommodation is zero rated for VAT. The more common ESMs include: controls for central heating; draught stripping; insulation; solar
If you made voluntary Class 2 national insurance contributions (NIC) for the 2022-23 tax year, check whether this payment has been refunded in error by HMRC. Some self-employed taxpayers who made voluntary Class 2 payments by 31 January 2024 may have an unexpected gap in their national insurance (NI) record
HMRC has issued guidance on various changes to the existing construction industry scheme (CIS) rules. If you are a sub-contractor, obtaining gross payment status (GPS) allows you to receive full payments from your customers without tax deducted. To achieve GPS you need to prove that you or your business: have
From 1 January 2024 online platforms such as websites, online marketplaces and apps that allow individuals and businesses to sell items and services are required to collect and report seller information and income to HMRC. If you sell items through eBay, Etsy, Facebook or another online marketplace, or rent out
From 6 April 2024 the cash basis has replaced accruals as the default method for preparing sole trader and partnership accounts for tax purposes. Previously, only unincorporated businesses with total receipts below £150,000 were entitled to opt out of accruals and file their accounts with HMRC using the cash basis.
From 6 April 2024 all unincorporated businesses (sole traders and partners in a partnership) are required to report profits or losses in line with the tax year. Businesses with an accounting period end other than 5 April or 31 March will need to report pro-rated results from two accounting periods
A new merged research and development (R&D) scheme has come into effect for periods beginning on or after 1 April 2024. The new scheme unifies the old R&D expenditure credit (RDEC) for large companies and the small and medium entity (SME) relief schemes. In line with the RDEC, the merged
The clawback threshold for the high-income child benefit charge (HICBC) was increased to £60,000 from 6 April 2024. If you are entitled to child benefit and your or your higher-earning partner’s adjusted net income (ANI) is above £60,000 it is possible that you will have chosen not to receive your
HMRC has updated its guidance to clarify the tax position of reimbursed travel costs for hybrid workers. As many employees are now working from home at least part of the time, some employers are offering to repay certain travel expenses. HMRC’s updated guidance includes new examples to illustrate when those
In the dynamic world of hospitality, success extends beyond impeccable customer service – it hinges on mastering your finances. For cosy pubs, bustling restaurants, and luxurious hotels alike, financial literacy is not merely an added skill; it is the cornerstone of business growth. Without effective financial management, even the most
For those harbouring dreams of entrepreneurial independence, the allure of owning a pub is undeniable. The image of bustling crowds, lively music, and happy customers enjoying your carefully curated selection of brews paints a picture of idyllic self-employment. But amidst the pints and merriment lies a crucial question: is it
Introduction: As the employment landscape evolves, so do the regulations surrounding compensation, including holiday pay. One significant development in this realm is the reintroduction of the 12.07% holiday pay rule, and even better the simplification of this in tandem with rolled-up holiday pay. In the past, employees patiently accrued holiday
Running a successful hotel involves more than just managing the books; it requires a strategic approach to financial management that goes beyond the traditional accounting functions. In this article, we’ll explore how hoteliers can unlock profitability by adopting a comprehensive financial strategy that encompasses various key aspects of the business.
In the fast-paced and dynamic world of hospitality, efficient financial management is the backbone of success. As technology continues to evolve, businesses in the pub and restaurant industry are turning to innovative solutions to streamline their finances. One such powerful tool gaining widespread popularity is Xero, an advanced cloud-based accounting
In the dynamic realm of hospitality, understanding and leveraging Key Performance Indicators (KPIs) is crucial for steering your business towards success. Carroll Accountants offers a specialised KPI review service, tailored specifically for businesses in the hospitality sector, including pubs, bars, and restaurants. Let us explore how monitoring these vital metrics
Embarking on the entrepreneurial journey demands crucial decisions, and among them is selecting the right business structure. Two prevalent options are operating as a limited company or as a sole trader. Each structure comes with its own set of advantages and disadvantages. Let’s delve into the pros and cons of
Have you ever pondered why, despite your business showing a healthy profit on paper, you find yourself grappling with cash flow issues? It’s a common dilemma that many entrepreneurs and business owners face. You’re not alone if you’ve ever heard the saying, “Turnover is vanity, profit is sanity, but cash
Business planning, a term often associated with the early stages of a venture. Entrepreneurs meticulously craft their business plans to secure funding, impress potential investors, and map out their initial journey. But what happens next? Why is business planning more than just a one-time activity that collects dust in the
In Spring Budget 2023 the Chancellor announced a welcome change to the tax treatment of pensions – the scrapping of the Lifetime Allowance (LTA). The LTA stood at £1,073,100 when the process began on 5 April 2023 with the removal of the LTA charge. This means that withdrawals can now
The Nationwide Building Society has paid what is described as a ‘fairer share’ of £100 each to around three million of its customers. To qualify for this payment the customer must have held a qualifying current account plus either a savings account (including ISAs) with a balance of at least
HMRC has confirmed that requirements to report additional information will come into effect from the 2025-26 tax year or possibly a later period. HMRC has set out its intention to collect data relating to trade sectors; locations; occupations; hours worked; shareholdings and dividends paid; and self-employed trading dates. Draft legislation
In families where child benefit is claimed, it is important that the individual or couple receiving the child benefit keeps a close eye on their income level. If the higher earner has income of more than £50,000 some or all of the child benefit received will need to be repaid.
There is currently no legislation specifically targeted at social media influencers, however the fast-growing industry is very much on HMRC’s radar. Earlier this year HMRC sent nudge letters to thousands of influencers as well as gamers and online traders on sites such as Etsy and Facebook Marketplace to remind them
If your company undertakes research and development (R&D) you will usually benefit from generous tax relief. HMRC has published draft legislation for a new merged R&D scheme which would unify the existing R&D expenditure credit (RDEC) which currently applies to large companies and the small or medium entity (SME) relief
Claiming child benefit is, after the initial claim, an incredibly straightforward process (subject to the issues raised above regarding higher earners). However after sixteen years of automatic claiming it is easy to forget to update HMRC on whether you will continue to be entitled for a further two years. This
HMRC has given taxpayers an extra two years to plug any gaps in their NIC record from April 2006. The deadline for making voluntary contributions has been extended from 5 April 2023, as previously reported, until 5 April 2025. The deadline was first extended to 31 July 2023 and HMRC
Prime costs are an important key performance indicator for your restaurant, which is often overlooked. Prime costs are one of the most important and revealing numbers on any restaurant’s P&L. They can give you a much better understanding of your cost structure, profit potential and how well your restaurant is
In the dynamic and competitive hotel industry, measuring financial performance is essential for business success. Key Performance Indicators (KPIs) serve as valuable metrics to evaluate a hotel’s financial health and identify areas for improvement. This blog explores the key KPIs that hoteliers should monitor to gain insights into their financial
Running a successful restaurant involves more than just serving delicious food and providing excellent service. Behind the scenes, effective financial management plays a critical role in ensuring your restaurant’s success and long-term sustainability. One key aspect of this financial management is bookkeeping. In this blog, we will delve into the
As a hotelier, you know that running a successful hotel requires expertise in various areas, including accounting. Managing the finances of a hotel comes with its own set of challenges and complexities that demand specialised knowledge. At Carroll Accountants, we understand the unique accounting needs of hotels and can provide
Running a licensed trade business in the UK comes with unique challenges and intricacies. From managing complex financial regulations to maximising profitability, the expertise of licensed trade accountants can be invaluable. At Carroll Accountants, we specialise in providing comprehensive accounting services tailored specifically to the licensed trade industry. In this
As any entrepreneur in the food and beverage industry knows, optimising profitability is of paramount importance. One of the key aspects that demands attention is controlling labour costs. The remuneration offered to the staff, the associated benefits and taxes all contribute to the overheads and can erode profits if not
In the fiercely competitive landscape of the hospitality industry, the need for proficient accounting professionals cannot be overstated. When it comes to managing the financial intricacies of establishments such as pubs, bars, restaurants, and cafes, a team of trained and specialised accountants is crucial. This article explores the profound significance
