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Reforms to leasehold properties becomes law
| 10-06-2024
The Leasehold and Freehold Reform Act has become law and will affect owners of freeholds for leasehold properties as well as house builders. The new reforms mean that leaseholders no longer
Report on Companies House progress released
| 10-06-2024
The Economic Crime and Corporate Transparency Act 2023 brought in reforms to Companies House procedures and powers with the first phase applying from 4 March 2024.
Digital Markets, Competition and Consumers Act becomes law
| 10-06-2024
The Digital Markets, Competition and Consumers Act has now received Royal Assent and become law in the UK.
Are you ready for changes to LLP salaried member rules? 
| 10-06-2024
HM Revenue & Customs (HMRC) has issued its updated guidance on salaried members in limited liability partnerships (LLPs), in relation to capital contributions.  
Using an iPhone? Keep an eye out for tax refund scammers 
| 10-06-2024
HM Revenue & Customs (HMRC) has warned that a new wave of fraudulent text messages is targeting taxpayers using iPhones, claiming that recipients are owed
The increase to Companies House fees: What you need to know 
| 10-06-2024
As of 1st May 2024, Companies House has implemented revised fees, marking a significant change in the cost structure for various services.  
New advisory fuel rates for electric company cars  
| 10-06-2024
HM Revenue & Customs (HMRC) has recently announced new Advisory Fuel Rates (AFRs) that will take effect from 1 June 2024.  These changes include a reduction in the Advisory Electric Rate (AER) for electric vehicles
MPs warn unfair banking is harming small firms
| 05-06-2024
The Treasury Committee has warned about the negative impacts of unfair banking practices and inadequate financial regulation on small and medium-sized enterprises (SMEs). The report, stemming from an inquiry into SME access to finance,
Updated guidance for pregnancy and maternity protections
| 29-05-2024
Updated guidance has been issued by the Equality and Human Rights Commission to help employers. The guidance provides advice on what employers can do to prevent pregnancy and maternity discrimination at work.
Support with employee health and disability
| 29-05-2024
A new service has been launched to help employers and managers with employee health and disability. The guidance contained in the service will help in supporting employees and to understand any legal requirements.
New planning rules reduce red tape for farmers
| 29-05-2024
New planning laws that have come into force simplify the conversion of unused farm buildings into new homes, farm shops, and gyms. These changes aim to help farmers diversify and expand their businesses
Farming and food sector receives new support measures
| 22-05-2024
Measures to support farmers and help the UK’s farming and food sector grow were announced last week by the government. The support package is designed to support domestic food production
Government promise to cut National Insurance confirmed
| 22-05-2024
While commenting on the GDP growth and what it indicates about the economy, the Prime Minister again drew attention to National Insurance. The article released by the Prime Minister’s
Are you an early bird?
| 22-05-2024
HM Revenue & Customs (HMRC) have released figures showing that 295,250 Self Assessment tax returns were filed in the first week of the new tax year. Almost 70,000 were filed on the first day – April 6th. Tax returns do not need to be filed until 31 January 2025,
How might the changes to company size thresholds affect your business?
| 14-05-2024
From October 2024, company size thresholds are to increase by 50%. For each company, these new thresholds will begin to apply from the start of the next accounting period commencing on or after 1 October 2024. But what are the implications of these changes to your company?
New digital service to check your State Pension forecast launched
| 14-05-2024
 A new digital service has been launched that makes it easier to check if you have any gaps in your National Insurance (NI) record that may affect your State Pension entitlement. The service is called Check Your State Pension forecast and can be accessed via GOV.UK or the HMRC app.
Financing your business – what should you know?
| 07-05-2024
Growing a business often requires capital. If you don’t have that capital personally or already in the business, then one option is to get finance from a bank. What types of finance are available? How can you present a request to a bank and have it accepted? We will endeavour
Hybrid working – what counts as a business journey for tax purposes?
| 07-05-2024
HM Revenue and Customs (HMRC) have updated their guidance on what qualifies as ordinary commuting and private travel for tax purposes to include hybrid or flexible working. Generally, where an employee works at home as

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The Leasehold and Freehold Reform Act has become law and will affect owners of freeholds for leasehold properties as well as house builders. The new reforms mean that leaseholders no longer have to wait two years before they can buy or extend their lease. If they do extend their lease, the Act increases the standard lease extension term to 990 years for both houses and flats. Previously this was 50 years for houses and 90 years for flats. These changes are designed to allow leaseholders to have more security in their home. Sales of new leasehold homes are now banned so that, other than in exceptional circumstances, every new house in England and Wales will be freehold from the start. Freeholders and managing agents are now required to issue bills in a standardised format to make charges more transparent, and it will now be easier and cheaper for leaseholders to take over management of their own building. The government also requires freeholders who manage their building themselves to belong to a redress scheme. This was already a requirement for managing agents. For more details on the changes, please see: https://www.gov.uk/government/news/leasehold-reforms-become-law

The Economic Crime and Corporate Transparency Act 2023 brought in reforms to Companies House procedures and powers with the first phase applying from 4 March 2024.

The reforms will contribute to making the information held in the company register more reliable and usable, protecting individuals and businesses from fraud and preventing the misuse of UK companies by international money laundering networks.

The Department for Business and Trade has published a progress report on the implementation and operation of the Act and will continue to do so every 12 months until 2030.

The report notes that between 4 March and 1 April 2024, Companies House had:

Companies House have made further changes to the way companies are set up so that it is much harder to make anonymous filings and discourage those who try to hide company ownership through nominees or opaque corporate structures.

To read the report in full, see: https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-act-2023-progress-report

The Digital Markets, Competition and Consumers Act has now received Royal Assent and become law in the UK. This new legislation aims to protect consumers and promote fair competition, particularly targeting large technology companies.

Here’s a summary of the key points of the Act:

Consumer Protection:

Empowering Regulators:

Penalties:

Additional Oversight:

In essence, this Act is designed to create a fairer, more transparent market environment, especially in the digital space, benefiting both consumers and businesses by ensuring honest practices and fair competition.

See: https://www.gov.uk/government/news/digital-markets-competition-and-consumers-act-receives-royal-assent

HM Revenue & Customs (HMRC) has issued its updated guidance on salaried members in limited liability partnerships (LLPs), in relation to capital contributions.  

Currently, LLPs incorporate elements of both partnerships and limited companies, limiting the liabilities of each partner to the amount of capital they put into the business.  

Partners are typically considered to be self-employed owners of the business rather than employees, but LLPs do allow for certain partnership members to be treated as employees – known as salaried members.  

Defining employees 

In an LLP, salaried members must meet the following conditions: 

 Targeted anti-avoidance rules (TAAR) 

The TAAR is designed to stop individuals from intentionally avoiding classification as a salaried member.  

The rule states that: “In deciding whether an individual is a salaried member, no regard is to be had to any arrangements the main purpose, or one of the main purposes of which, is to secure that the individual (or that individual and other individuals) is not a salaried member.” 

This means that, when determining if someone should be considered a salaried member, any plans or agreements that are set up primarily to prevent that classification will not be considered. This ensures that the decision is based on the actual job conditions and responsibilities. 

What has changed? 

HMRC has updated its guidance on salaried members, particularly concerning the alteration of capital contributions.  

Members of a partnership may try to change their individual capital contributions to ensure they do not exceed the limit of 25 per cent of disguised salary. 

For example, if an individual’s expected disguised salary rises, they may contribute additional capital to avoid being classed as a salaried member.  

However, updated rules state that the TAAR can still be applied even when avoidance measures constitute a genuine contribution to the partnership by the individual.  

In this case, the additional capital would not be counted, and the individual could be classed as a salaried member.  

Why is this important? 

Whether an individual is classed as a partner in an LLP, or a salaried member determines how their income will be taxed.  

An employee will be taxed via PAYE and the partnership must pay Class 1 employers National Insurance.  

By contrast, a partner must report their income via Income Tax Self-Assessment (ITSA) and is responsible for the payment of tax on any income earned via the partnership.  

We can advise you on structuring your business in a tax-efficient way while remaining compliant with the latest legislation. For further support, contact a member of our team.  

HM Revenue & Customs (HMRC) has warned that a new wave of fraudulent text messages is targeting taxpayers using iPhones, claiming that recipients are owed tax refunds and must supply personal information to receive them.  

Some recipients are also being asked to follow a link to access their refund, which is disguised to appear legitimate.  

This latest incident comes as HMRC-related scam messages rise sharply, growing by 36 per cent per annum between January 2022 and January 2023.  

Recognising an incident  

HMRC is aware of the issue and is working to tackle it. It has urged taxpayers to be cautious and be on the lookout for any fraudulent communications purporting to be from HMRC.  

This includes text messages, as well as emails, phone calls, social media and WhatsApp messages, both on Apple and other devices. 

HMRC has also warned recipients of these messages to exercise caution when asked to act quickly or send personal details via text message – as these are common warning signs of fraudulent activity.  

Finally, it has confirmed that it avoids using methods of communication commonly used by fraudsters, particularly steering clear of requesting personal details via text message.  

If you are concerned about communications relating to a tax refund, contact your accountant for advice.  

Reporting an attack 

The issue that many taxpayers are facing with this new campaign of scam messages is that it is difficult to report and block the number.  

Fraudsters are using legitimate business phone numbers or Apple accounts to send messages, meaning they often cannot be blocked by the recipient.  

Many recipients are also facing issues in reporting scam messages to Ofcom’s designated anti-spam line because they are often sent from legitimate business numbers.  

For further advice on tax, tax refunds and staying safe as a taxpayer, please contact our team today. 

As of 1st May 2024, Companies House has implemented revised fees, marking a significant change in the cost structure for various services.  

This adjustment stems from the Economic Crime and Corporate Transparency (ECCT) Act, introducing measures that inevitably increase operational costs for Companies House.  

Understanding the impact 

The fee revisions encompass a range of services, each carrying its own implications for businesses.  

Notably, the fee for an annual confirmation statement, when submitted digitally, has surged to £34, compared to the previous rate of £13.  

This increase represents a substantial adjustment and demands careful consideration from businesses, especially those accustomed to the previous fee structure. 

Strategic considerations 

Given the recent changes, businesses are urged to assess their filing schedules and plan accordingly.  

For a comprehensive breakdown of the prices that have taken effect from 1 May 2024, businesses can refer to the official source provided by Companies House: Changes to Companies House Fees.  

This resource serves as a valuable reference point for understanding the specific fee adjustments and their implications for businesses of varying sizes and industries. 

Seeking expert guidance 

Navigating these fee adjustments and the broader implications of the ECCT requires a nuanced understanding of company law and compliance obligations.  

As such, businesses are encouraged to seek professional advice and support to navigate these changes seamlessly.  

Our company secretarial experts are ready to assist businesses in adapting to the revised fee structure and ensuring continued compliance with regulatory requirements, so speak to us.  

HM Revenue & Customs (HMRC) has recently announced new Advisory Fuel Rates (AFRs) that will take effect from 1 June 2024.   

These changes include a reduction in the Advisory Electric Rate (AER) for electric vehicles – which can be highly tax efficient.  

Many businesses have invested in electric fleets, which presents a slight problem for business owners.  

Should you reduce your rates in line with the AER or stick with your current rates? Here’s everything you need to know. 

Key changes in the AFRs  

Below is a breakdown of the key changes made to the rates – these are advisory, however, so you have no obligation to follow them to the letter.   

How does the AER calculation work  

In essence, the AER is derived from data on electricity costs and vehicle consumption rates.   

The Department for Energy Security and Net Zero (DESNZ) provides the annual “pence per kilowatt hour” cost, which is then adjusted quarterly by the Office for National Statistics (ONS) Consumer Prices Index for electricity.   

This data is combined with vehicle-specific electricity consumption rates and business car sales data to calculate a weighted average cost per mile for fully electric cars.  

The Association of Fleet Professionals (AFP) suggests having different rates based on access to home charging and vehicle type (cars versus vans) which could provide a more accurate reflection of actual costs and improve fairness among employees (this is yet to be implemented).   

Responding to the changes  

You’ll want to review how the new AER compares to the actual costs incurred by your employees for charging their electric vehicles.   

If the new rate falls short, consider whether this might lead to dissatisfaction or financial strain for your employees.  

It’s important to remember that although HMRC sets the advisory rates, businesses can set their own reimbursement rates.   

So, if the new AER does not cover the true costs, you might want to consider offering a higher reimbursement rate to ensure employees are not out of pocket.  

We can provide tailored advice to ensure your reimbursement policies meet both regulatory requirements and the needs of your employees.  

For more information, or guidance based on your unique circumstances, please get in touch.   

The Treasury Committee says confidence among SMEs has fallen.

The Treasury Committee has warned about the negative impacts of unfair banking practices and inadequate financial regulation on small and medium-sized enterprises (SMEs). The report, stemming from an inquiry into SME access to finance, highlights the struggles these businesses have faced over the past five years, exacerbated by the global pandemic and energy crisis.

The committee criticised the widespread use of personal guarantees, which often require borrowers to secure loans against personal assets, such as their homes. It also raised concerns about “debanking”, noting that in 2023 alone, banks closed around 140,000 SME accounts, frequently without sufficient explanation.

The report condemned the current mechanisms for resolving disputes between SMEs and banks as inadequate. The Financial Ombudsman Service lacks the resources and expertise for complex SME cases, while the Business Banking Resolution Service (BBRS) has been ineffective and is recommended for closure. Despite costing over £40m, the BBRS has resolved only 58 cases.

The committee has made several recommendations to enhance transparency and fairness in banking for SMEs. These include urging the Financial Conduct Authority (FCA) to enforce greater transparency in account closures and to amend regulations regarding the use of personal guarantees. Furthermore, it suggests expanding the scope of the Financial Ombudsman Service and calls on the Treasury to develop a new, independent system to support SMEs outside the Ombudsman’s current remit.

Talk to us about your small business.

Updated guidance has been issued by the Equality and Human Rights Commission to help employers. The guidance provides advice on what employers can do to prevent pregnancy and maternity discrimination at work.

The updates are due to the new flexible working laws that came into effect in April 2024, and they outline the changes that employers will have to make because of these laws.

These changes include:

Employers should ensure that they are up-to-date and compliant with the new laws, and the guidance can help with doing that.

To review the guidance in full, see: https://www.equalityhumanrights.com/guidance/pregnancy-and-maternity-pregnancy

A new service has been launched to help employers and managers with employee health and disability.

The guidance contained in the service will help in supporting employees and to understand any legal requirements. There are also links provided to government and other organisations that are able to help.

The guidance contains information on:

The service asks you questions, such as “Is your employee currently at work?” or “Has your employee told you they have a health condition or disability?”. Depending on your answers it then provides advice and information about what you need to do.

To try the new service out, see: https://www.support-with-employee-health-and-disability.dwp.gov.uk/support-with-employee-health-and-disability

New planning laws that have come into force simplify the conversion of unused farm buildings into new homes, farm shops, and gyms. These changes aim to help farmers diversify and expand their businesses without the burden of submitting planning applications.

Farmers can now repurpose agricultural buildings and land for various new uses, including outdoor sports facilities, larger farm shops, and training centres.

Permitted development rights already allow farmers to make some changes without needing planning permissions, but these have now been extended to provide greater freedoms. For instance, the number of homes that can be provided through converting agricultural buildings has doubled from five to ten, provided certain conditions like space and natural light are met. This initiative supports development of rural housing, enhancing the availability of homes in rural areas.

Key changes include:

See: https://www.gov.uk/government/news/planning-red-tape-slashed-for-farmers

Measures to support farmers and help the UK’s farming and food sector grow were announced last week by the government. The support package is designed to support domestic food production and boost innovation so that the sector can reach its full potential.

A new blueprint

A blueprint to grow the UK fruit and vegetable sector is included as part of the measures. This is a plan to increase the amount of fruit and vegetables produced in the UK.

The blueprint includes plans for ensuring access to affordable and sustainable energy and water, cutting red tape so that glasshouses can be built more quickly and easily, and new investment aimed at boosting innovation.

To look at the blueprint in full, see: https://www.gov.uk/government/publications/a-blueprint-to-grow-the-uk-fruit-and-vegetable-sector

Food Security Index

A new annual Food Security Index has also been published. This index is UK-wide and gives an assessment of the state of UK food security in 2023 to 2024.

Rather than being a single figure, the index looks at 9 indicators across a range of areas. This allows for a more qualitative, well-rounded assessment to be made.

The new index shows an overall assessment of UK food security as being broadly stable. It does mention though that there are longer term risks from climate change, and an exceptionally wet winter and spring in 2024 pose significant challenges to some domestic production.

To read about the Food Security Index and its 9 indicators in full, see: https://www.gov.uk/government/publications/uk-food-security-index-2024/uk-food-security-index-2024

While commenting on the GDP growth and what it indicates about the economy, the Prime Minister again drew attention to National Insurance.

The article released by the Prime Minister’s Office noted that the progress in the economy has allowed them to bring down taxes, particularly the recent cuts in National Insurance.

The article went on to say: “We think it’s unfair that workers pay two taxes on their income – income tax and National Insurance – when those who earn their income from other sources only pay income tax. That’s why we want to keep cutting National Insurance until it’s gone.”

Likely part of an election strategy, but this again confirms that we can expect further cuts to National Insurance.

The lack of National Insurance to pay on dividend payments is a key reason why many company shareholders choose a blended salary/dividend approach to extract money from their company. However, cuts to National Insurance will lessen the tax advantages that dividends bring.

The cuts that have already been made mean that taxpayers in certain situations will want to review their profit extraction strategy. Future cuts will likely mean more need to do this.

If you are unsure about your profit extraction strategy please feel free to get in touch with us and we will be happy to carry out a personalised review for you.

See: https://www.gov.uk/government/news/what-does-gdp-growth-mean-for-me

HM Revenue & Customs (HMRC) have released figures showing that 295,250 Self Assessment tax returns were filed in the first week of the new tax year. Almost 70,000 were filed on the first day – April 6th.

This seems to suggest an increasing trend for filing tax returns early. Last year, 246,210 returns were filed in the opening week.

Tax returns do not need to be filed until 31 January 2025, however filing early does bring advantages. You get more time to budget and plan for paying your tax bill as well as peace of mind from knowing an essential task has been ticked off your to-do list.

However, it is especially good if you have overpaid tax since tax refunds will be paid as soon as the return has been processed, Therefore, the earlier the tax return is filed, the earlier a refund can be received.

You may need to complete a tax return for the 2023 to 2024 tax year if:

If you are new to Self Assessment and think you might need to complete a return, you can use HMRC’s online tool to check your situation.

If you would like help in completing your tax return, please do not hesitate to contact us at any time. We will be happy to help you!

See: https://www.gov.uk/government/news/300000-file-tax-returns-in-the-first-week-of-the-tax-year

From October 2024, company size thresholds are to increase by 50%. For each company, these new thresholds will begin to apply from the start of the next accounting period commencing on or after 1 October 2024. But what are the implications of these changes to your company?

The Companies Act 2006 makes requirements for what is included in the accounts that are filed at Companies House. These requirements are split into four categories or regimes based on the size of the company. These four sizes are described as micro-entity, small, medium-sized, and large.

A company generally falls into one of those four categories based on its turnover and Balance Sheet total. The larger the company, usually the more requirements there are as to what is included in the accounts.

The increase in the thresholds potentially means that many businesses will move down a category.

At first glance this is good news as it means reduced requirements for the accounts. However, there may be reasons why a company might decide not to take advantage of the change.

For instance, if a company is growing rapidly, stepping down a category may only be temporary. Because some reporting requirements rely on ongoing processes, it may be inconvenient to stop those processes only to have to start them a year or so down the line.

If you have any concerns about how the changes might affect your company, please feel free to contact us. We would be very happy to help advise you on the most suitable regime for your company.

A new digital service has been launched that makes it easier to check if you have any gaps in your National Insurance (NI) record that may affect your State Pension entitlement.

The service is called Check Your State Pension forecast and can be accessed via GOV.UK or the HMRC app. You will need to register for or login to your Personal Tax Account to find the service.

The forecast details your NI record by tax year and identifies if there are any years that are not counting towards your State Pension entitlement. The service also shows the details of any voluntary NI contributions that you could make to increase your forecast.

The service allows you to choose which years you would like to pay voluntary contributions for and then takes you through to a secure payment facility to make payment.

If you think you may have gap years in your contributions, it is important to check sooner rather than later. Because of new State Pension transitional arrangements, the deadline for paying voluntary NI contributions was extended to 5 April 2025.

Currently, it is possible to make voluntary contributions for tax years going back to 6 April 2006. However, from 6 April 2025, it will only be possible to make voluntary contributions for the preceding six years.

If you need help using the service, or you would like to review your retirement and pension plans, please give us a call. We have access to expert financial advisers who will be happy to discuss your plans with you in a no pressure environment.

See: https://www.gov.uk/check-state-pension

Growing a business often requires capital. If you don’t have that capital personally or already in the business, then one option is to get finance from a bank. What types of finance are available? How can you present a request to a bank and have it accepted? We will endeavour to answer those questions in this article.

Common types of finance

Financing can usually be broken down into 3 main areas: loans, leases, and hire purchase.

It pays to compare interest rates and look at the total cost of ownership. Loans are usually the cheapest source of finance to a business, but there can be good reasons for considering leases or hire purchase.

Matters considered by a bank

When looking at an overdraft or loan application, a bank will consider what they know about you and your business, and the experience they have of the trade you are in. They will also look at your experience with the business and how you handle your accounts with the bank.

The bank will also consider the amount of finance being requested and whether it is enough to complete the aim of the finance. They will want to see cashflow forecasts and whether other factors relating to the finance request have been properly considered. For instance, if the finance is to expand property, are planning applications needed?

A bank will also look at whether the repayment period of the finance fits with the use of the asset. For example, a 10-year loan for a laptop is unlikely to be accepted.

Banks will often flex their interest rates and fees to cover them for the risk they may feel there is in lending to you. And, particularly with an overdraft, they may want to see regular financial reports from you.

When you can show that you have requested an adequate amount of finance for what you are proposing, you have demonstrated the need for the finance, and you have up to date accounts and forecasts including cashflow projections, you are giving the bank plenty of reasons for confidence in lending you the money.

We have connections with local banks and have many years of experience working with clients to get the finance that takes their business forward. Please just get in touch and we will be happy to guide you through the finance maze!

HM Revenue and Customs (HMRC) have updated their guidance on what qualifies as ordinary commuting and private travel for tax purposes to include hybrid or flexible working.

Generally, where an employee works at home as an objective requirement of the job, then HMRC will usually accept that the employee is entitled to tax relief for the expenses of travelling from their home to another workplace, such as the office, when this is in performance of the duties of their job.

Usually, HMRC will only accept that working at home is an objective requirement of the job if facilities that an employee needs to do their job are only practically available at their home.

On the other hand, if an employer provides appropriate facilities in other locations that could be practically used by the employee, or the employee chooses to work from home, then HMRC will not accept that working from home is an objective requirement of the job.

HMRC provide an example to illustrate this. The work of an area sales manager living in Glasgow requires her to manage the company’s regional sales team across Scotland, but the companies nearest office is in Newcastle. Since the manager cannot practically attend that office and is required by her employer to keep all client information securely at home, she is entitled to tax relief for her costs on the occasions she travels to the company’s office in Newcastle.

Since COVID and with the developments in communication technology, many employers now allow their employees the choice of working from home on a flexible or hybrid basis. The employee will usually have a base office that they attend on the days they are working in the office.

Since this flexible way of working is voluntary for the employee, they are not required to work from home. This means that any journeys they make from home to the office are ordinary commuting and do not qualify for tax relief.

This is important to be aware of as an employer if you reimburse staff using the approved mileage rates. You must make sure that you do not reimburse expense claims for home to office travel for employees who are hybrid workers by their own choice. If you do, the payment then becomes a benefit and will need to have tax and national insurance deducted via payroll.

If you are not sure about whether you or an employee qualifies for tax relief on home to office journeys, please feel free to call us at any time. We will be happy to help you!

See: https://www.gov.uk/guidance/ordinary-commuting-and-private-travel-490-chapter-3#employees-who-work-at-home