Merranti Accounting Blog

Tax up or down accounting

How to carry back income tax losses

October 13, 2021

How to carry back income tax losses    Many unincorporated businesses made a loss in the tax year 2020/21, due to the pandemic. Now it’s important to make the most of such losses. By carrying back the trading losses to an earlier tax year in which you made profits in that trade, you may be

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Electric cars and vans

October 13, 2021

Electric cars and vans  Now could be a good time for your company to invest in an electric car or van, as there are generous tax reliefs available. A purely electric car qualifies for a 100% first year allowance (FYA) if it is acquired before 1 April 2025. This means that it is deductible fully

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Claiming capital allowances

October 13, 2021

Claiming capital allowances   Capital allowances of 130% are currently available on some plant and machinery. Buildings and structures do not usually qualify as plant, but there are exceptions. Agricultural structures have been shown to be ‘plant’ rather than buildings for tax purposes in the case of mechanised grain silos and potato stores. In both cases

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National Minimum Wage: Common traps

October 13, 2021

National Minimum Wage: Common traps    The top three mistakes made by employers concerning the National Minimum Wage (NMW) rates are: 1. Making deductions from wages (such as uniform or expenses) which take the pay below the NMW rate; 2. Failing to pay workers for all the time they work, including overtime; 3. Paying the

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Prepare for Making Tax Digital for income tax

October 13, 2021

Prepare for Making Tax Digital for income tax    From 6 April 2024 most unincorporated businesses will have to comply with the Making Tax Digital for Income Tax Self Assessment (MTD ITSA) regulations. Individuals with trading and/or property income of less than £10,000 per year in total will not have to comply with MTD ITSA. Where

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Tax credit renewals

Tax credit renewals

October 13, 2021

Everyone who claims Working or Child-related Tax Credits should have received a Tax Credits renewal pack for the year 2021/22 from HMRC by now. If you haven’t received your renewal pack, please contact HMRC without delay on 0345 300 3900. Where your income has reduced permanently as a result of the Covid-19 pandemic, check that your

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Furnished holiday lets

Furnished holiday lets

August 2, 2021

Landlords who let holiday accommodation have largely been left out of the covid-related business support. Where the property was registered for business rates, the owner qualified for some small local authority grants, but other landlords received nothing. Holiday letting businesses have also suffered from the various lock-downs that restricted travel across the country. This has

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Child benefit clawed back

Child benefit clawed back

July 28, 2021

Child Benefit is a universal benefit; every family with a child under 16 (20 if the child is in approved education or training) is entitled to receive it. However, since 2013, Child Benefit has been clawed back from certain higher rate taxpayers by means of a tax charge. This tax charge applies where the higher

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Umbrella Company IR35 HMRC

Beware of IR35 traps

July 28, 2021

Where a contractor operates via their own personal services company (PSC), work performed for large or medium-sized clients in the private sector may now fall under the ‘off-payroll working rules. This is a new version of IR35, which requires the end client to decide whether there is a deemed employment relationship for tax purposes with

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HMRC targets businesses not using MTD

HMRC targets businesses not using MTD

July 19, 2021

Most VAT-registered businesses have been required to comply with the Making Tax Digital (MTD) regulations for VAT since 1 April 2019. Until now, HMRC has taken a soft approach to those who have not switched to submitting VAT returns using MTD-compliant software, but that is changing. Around 800 businesses have been told that they will

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