On The Spot Blogs

Health & Social Care Reform or Sticking Plaster?

This week we heard about a new 1.25% tax to fund health and social care, but as only £5.4bn of the £36bn raised over the next 3 years will be spent on social care, this seems to be another tax 'pot' such as national insurance and income tax from which to fund the NHS.

Unfortunately, tax simplicity and clarity is something we never see from governments making it harder for everyone, including HMRC, to understand the tax system. So how might you respond?

 

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2023 Corporation Tax Increase - 7 Ways To Keep It Low

 

INTRODUCTION

For annual group taxable profits over £50k, from 1 April 2023, the corporation tax rate will increase from 19% to 26.5% on additional profits between £50k up to £250k, after which 25% is charged on all profits over £250k.

Therefore reducing profits from say £100k to £50k saves 26.5% of £50k = £13,250. Or on profits in the entire 26.5% tax band from £50k to £250k, you might even get to save 26.5% of £200k, a corporation tax saving of £53k!

NB For close investment holding companies, 25% will apply to all your taxable profits.

 

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2021 Tax Year End Planning - Top Tips


Easter Monday is not only the end of a long bank holiday, it’s also the end of the tax year. Make sure you plan accordingly, so you can improve your nest egg before Easter 🐤 Please see our top tips below:

1. Income Tax Thresholds - £50k and £100k

These are crucially important to understand, to ensure you don’t pay more tax than you need to. Even if you benefit from a 0% tax rate on certain allowances, say the £2k dividend allowance, the £2k still counts towards these £50k and £100k thresholds.

 

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Budget 2021 - Help To ReGroup & Grow

Today we've had a whistle-stop tour of initiatives which the government hopes will encourage growth. From saving existing skills with furlough and SEISS scheme extensions, a new super tax deduction on equipment, through to funding high quality training schemes (if you have at least 5 employees). 

Here are the main headlines of interest to small and growing businesses...

 

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