When most business owners refer to business profits, they are likely to mean the difference between sales and costs, and more concisely, that sales exceed costs. However, the word “profits” can prove to be a moveable feast as HMRC, banks and traders will likely have a different interpretation. For example, do costs include: intangible overheads

In a recent press release the government confirmed the following policies to support household incomes from 1 April 2024. The National Living Wage has officially risen from £10.42 an hour to £11.44. This marks a £1,800 annual boost to full-time workers’ pay packets. This means nobody over 21 will earn less than two-thirds of the

If you use your own vehicle for business journeys you may be able to claim a tax-free allowance from your employer known as a Mileage Allowance Payment or MAP. The allowance is paid when employees use their own car, van, motorcycle or bike for work purposes. It is important to note that this tax-free allowance is

The President of the Employment Tribunals (England and Wales) and the President of the Employment Tribunals (Scotland) have issued updated joint Presidential Guidance in relation to the “Vento bands” for compensation for injury to feelings and psychiatric injury in discrimination claims brought under the Equality Act 2010.  The Vento bands are being uprated to take

There is no requirement to report certain routine expenses to HMRC. The travel and subsistence benefits that do not need to be reported include reimbursed costs to employees covering business travel. Subsistence includes meals and any other necessary costs of travelling, for example parking charges, tolls, congestion charges or business phone calls. As an alternative

HMRC’s VAT Notice 700/21: keeping VAT records has recently been updated. The reason for any zero rate or exemption has been removed from the list of details you must include on a VAT invoice. The notice provides VAT registered businesses with useful guidance on the records they must keep as well as providing advice on

The letters in your tax code signify your entitlement (or not) to the annual tax free personal allowance. The tax codes are updated periodically and help employer’s work out how much tax to deduct from an employee’s pay packet.  The basic personal allowance for the current (and next) tax year is £12,570. The corresponding tax code

From the start of April 2024, the government will increase the amount of funding that employers who are paying the apprenticeship levy can pass onto other businesses. Apprenticeships can currently be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer.  Under the new measures, large employers

There are special rules for businesses established outside the UK to submit a claim for VAT incurred on goods or services bought in the UK. The rules that determine what VAT is refundable are complex. There are also a number of conditions which must be met for a claim to qualify. The deadline for the submission of

The replacement of domestic items relief enables landlords to claim tax relief when they replace movable furniture, furnishings, household appliances and kitchenware in a rental property. The allowance is available based on the cost of domestic items such as free-standing wardrobes, curtains, carpets, televisions, fridges and crockery. In order for relief to be given, four conditions must