15 February 2024
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Welcome to our round up of the latest business news for our clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you.

Maple Accountancy’s New Head Office

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Maple Accountancy’s Head Office and Maple Financial Solutions have relocated to Wyvern Court on Wyvern Business Park, Derby.

Jenny and the Team are really excited to be making the move to the Business Park to modern purpose-built offices which will provide a collaborative and inspiring working environment for not only the team but for our clients too.

You can find us here-

Carter House, Wyvern Court, Stanier Way, Wyvern Business Park, Derby, DE21 6BF.

Budget set for 6th March 2024

 

The 2024 Budget will be held on Wednesday 6 March, setting out future tax plans

The 6 March event will be the last Budget before the general election, which has to take place by the end of January 2025.

Coins

The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to parliament alongside the Spring Budget. We will keep you posted.

HMRC targets crypto traders over unpaid tax

In the latest clampdown on crypto traders, HMRC has sent letters to individuals informing them that they are under investigation for non-payment of tax, said UHY Hacker Young.

Enquiry letters have now started to reach crypto investors, requesting information on how they fund their crypto investments, how they determine what element of their cryptocurrency profits are subject to income tax and capital gains tax (CGT), and how they deduct losses from their tax bills.

Crypto investors who receive a letter are being asked to send documents to HMRC which record their cryptocurrency transactions and income earned from crypto holdings.

HMRC has only given taxpayers one month to respond, causing stress and anxiety among those taxpayers.

The tax rules on cryptocurrencies can be difficult to interpret, for individuals who do not have access to professional advice.

If an investor regularly buys and sells cryptocurrency, HMRC may class that individual as a trader. This would mean they would have to pay income tax instead of CGT, greatly increasing the size of the individual’s tax bill. However, there is no clear objective definition of what frequency of trading classifies a taxpayer as a trader.

Neela Chauhan, partner at UHY Hacker Young, said that crypto investors should be very careful of incorrectly giving HMRC the false impression that they are traders.

‘HMRC’s war on crypto tax avoidance has now stepped up another gear,’ said Chauhan.

‘Responding to an enquiry letter from HMRC can be a real minefield. Anyone who has received one of these letters needs to be extremely careful to be very accurate in how they respond. Getting it wrong can have hugely expensive consequences.

‘The tax rules for cryptocurrency are quite open to misinterpretation. This means that there is a chance that a taxpayer could accidentally leave HMRC with the impression that they’re trading professionally and open them up to income tax.

‘Anyone getting one of these letters really should take professional advice before responding.’

HMRC has stepped up its campaign against cryptocurrency investors amid the dramatic price rally across the crypto market over the past 12 months. Bitcoin has risen over 150% in the past year.

The tax authority is also keen to target crypto as a source of tax revenue as 4.9 million people in the UK own some cryptocurrency as of 2022, according to the Financial Conduct Authority.

Mandatory payrolling of employment benefits from 2026

The reporting and payment of income tax and Class 1A NICs on benefits in kind (BIK) will have to be made through payroll software from April 2026.

The reporting change to employment benefits will be mandatory and is part of HMRC’s plans for a move to a digital first tax authority but the timetable for the rollout is tight with just over two years to develop the software and conduct testing.

HMRC phone app

Announcing the launch date of April 2026, HMRC said the move was ‘building on the progress already made on the government’s ambition to fully digitalise the reporting of benefits in kind.
‘Mandation will simplify the tax affairs of three million people and reduce the need for them to contact HMRC.’
This measure will reduce administrative burdens for HMRC and thousands of employers by simplifying and digitising the process of reporting and paying tax on all employment benefits as they will no longer have to submit end of year returns.
However, there is only two years to ensure that software is developed and tested before the reporting rules come into force.
ICAEW tax faculty warned: ‘A start date of April 2026 does not leave much time for HMRC to draft a full specification for software development and testing before implementation.’
The decision was confirmed in a policy paper on tax simplification measures released by HMRC on 16 January.
HMRC said it would engage with stakeholders to discuss the proposals to ‘inform design and delivery decisions, and draft legislation will be published later in the year as part of the usual tax legislation process’.
HMRC will also work with industry experts to produce guidance, which will be made available in advance of 2026.
‘Although payrolling BIK removes the need for employers to submit forms P11D for these BIK, class 1A NIC currently still needs to be reported and paid separately to HMRC using form P11D(b),’ stressed the ICAEW tax faculty.
‘The news that class 1A NIC will be payable via payroll software is potentially welcome from an administrative viewpoint, but it is currently unknown whether the due date for paying class 1A NIC will change.’
HMRC said further information will be published via its usual communication routes, such as employer bulletins.

HMRC targets undeclared dividend payments

HM Revenue and Customs building

Company directors suspected of earning dividends without declaring their taxable income are being contacted by HMRC

In the latest letter campaign, HMRC has been writing to company owners informing them that they may need to declare dividend income.

HMRC has been investigating company reserves identifying companies that have made a profit but have depleted reserves, alluding to a dividend payment.

The owners are being given the option to disclose information on any dividends that have not been declared or inform HMRC if they believe there is nothing more to declare.

The cut in the dividends allowance to £500 from April 2024 will affect 3,250,000 people in 2023, increasing to 4,405,000 for the 2024-25 tax year. This is expected to raise £450m in 2024-25 rising to £810m in 2025-26.

Taxpayers will be given 30 days to notify HMRC if there is nothing to declare.

Penalties charged can be as much as the same amount of tax due if wrong amounts have been submitted, plus interest charged per day for any late payments.

There is an online disclosure facility available for companies to register anything owed, but registration needs to be completed first. Interest and penalties can also be paid through this service once a payment reference number (PRN) has been received in the post.
There is a 90-day deadline after receipt of the PRN; if this is not met HMRC can open a compliance check and charge higher penalties if undeclared dividend payments are found.

Currently, £1,000 can be earned in dividends tax-free, but from April 2024 this is being cut in half to £500. In April 2023, the dividend allowance was halved from £2,000.

The Treasury said that this policy ‘supports the government’s objective of putting the public finances on a sustainable path’.

Dividend income from assets held in ISAs will remain completely tax-free.

HMRC estimates that the changes to the dividend rules will cost £700,000 to implement.

Tax Filing Deadlines – March 2024

1 March
Corporation tax due for accounting periods ended 31 May 2023 where not payable by instalments
HMRC reviews advisory fuel rates for company cars

7 March
VAT returns and payments due for month or quarter ended 31 January 2024

14 March
Corporation tax instalment payments due for large companies as follows:
Year ended 30 November 2023 – instalment 4
Year ended 28 February 2024 – instalment 3
Year ended 31 May 2024 – instalment 2
Year ended 31 August 2024 – instalment 1

Corporation tax instalment payments due for very large companies as follows:
Year ended 31 March 2024 – instalment 4
Year ended 30 June 2024 – instalment 3
Year ended 30 September 2024 – instalment 2
Year ended 31 December 2024 – instalment 1

17 March
PAYE, NICs, student loan deductions and CIS deductions due for month ended 5 March 2024 paid non electronically

19 March
CIS returns due for month ended 5 March 2024
EPS due for month ended 5 March 2024 so HMRC can apply a reduction on what is owed from FPS

22 March
PAYE, NICs, student loan deductions and CIS deductions due for month ended 5 March 2024 paid electronically

31 March
Corporation tax return due for accounting periods ended 31 March 2023
Deadline for amending corporation tax returns for accounting periods ended 31 March 2022
Inheritance tax due for deaths in September 2023
Deadline for amending ATED return for the year ended 31 March 2023

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Nathan has had a wonderful start to 2024 with Maple, having taken on a lot of additional responsibility within his team, he is showing a real presence in the team and having a real impact on supporting his Client Manager.

Nathan also got stuck in when the team moves offices,
Without any moaning and smiled whilst doing it!

Keep up the good work Nathan!

Maple Accountancy is a firm of expert Business Advisors offering accountancy services, tax and business advice to owner-managed and family-owned businesses.

All clients are individual, and we tailor our service to your needs. Use the site to find out what makes us different and understand why you should appoint us.

Offices

Head Office
Carter House, Wyvern Court,
​Stanier Way, ​Wyvern Business Park, Derby. DE21 6BF

01332 207336

Birmingham
3 Brindley Place, Birmingham, B1 2JB
0121 769 2197

Manchester & Leeds Chancery Place ​
50 Brown Street, Manchester, M2 2JG
0113 418 2078

London
1 Giltspur Street, London, EC1A 9DD
020 7127 0649

Contact

Maple Accountancy Ltd.

Carter House, Wyvern Court, ​Stanier Way, ​Wyvern Business Park, Derby. DE21 6BF

01332 207336
success@maple.uk.com

Maple Accountancy © 2024 Registered in England & Wales company No 06242262 | VAT No 290923389