I recently had the chance to sit down with Garry Crosby, a business coach who presents the Business Sense Podcast. It was a great conversation, and I think it offered a lot of important advice on the initial start-up process and how to correctly manage initial business growth. Here are some of the key messages that came through in the conversation that I think would be particularly valuable for you and your business. Proactive financial management Garry and I talked about why proactive financial management is so important and how businesses fail to actively manage their affairs. Especially wh ..read more

As an audit specialist, I’ve noticed that many clients harbour misconceptions about the nature and purpose of statutory audits. At their foundation, statutory audits are independent examinations of a company’s financial statements, as required by law. The primary aim of these audits is to deliver an unbiased evaluation of a business’s financial records and practices. This ensures that the financial statements accurately reflect the ‘true and fair’ financial position of the company. However, it’s important to understand that this process transcends mere compliance and can also uncover valuable ..read more

The landscape of VAT registration in the UK is set for a significant shift as HM Revenue & Customs (HMRC) announces the transition to a fully digital process. Beginning 13 November, as part of the Making Tax Digital (MTD) initiative, all VAT registrations will be conducted through the online VAT Registration Service, accessible via the Government Gateway account. This change is designed to streamline the registration process, enhance security, and make the system more efficient for both businesses and HMRC. However, it is essential to acknowledge that certain business categories, such as ..read more

By Matt Storey, Partner at Moore Thompson  Research and Development (R&D) tax relief is a vital support mechanism for Small and Medium-sized Enterprises (SMEs) in the UK, encouraging innovation and business growth.   Yet, misconceptions persist regarding eligibility and the claiming process, leading many SMEs to miss out on this crucial financial benefit.  In this article, I hope to debunk some common myths surrounding R&D tax relief claims, highlight the value of professional advice, and shed light on rogue companies that promise more than they can deliver.  ..read more

A recent analysis of Foreign Direct Investment (FDI) projects during 2022 saw the UK perform strongly in Research and Development (R&D) compared to their European counterparts. R&D FDI projects in the UK had risen in 2022 by 14.4 per cent. 127 projects in total were recorded, second only to France on 144 who were only up by 8.3 per cent. Additionally, 53.8 per cent of surveyed investors plan to increase their UK R&D investments in the next three years. It is worth noting that the UK led Europe on pharmaceutical and medical devices R&D centres, with almost double the number of ..read more

HM Revenue & Customs (HMRC) has removed the default surcharge for late payments of VAT and replaced it with what is a new penalty charge. The way interest is charged has also been amended. Previously, the default surcharge was two per cent of the VAT outstanding at the due date but would increase progressively to five per cent, 10 per cent, and 15 per cent for further payment defaults in a surcharge. New penalties for late payment of VAT As of 1 January 2023, this surcharge was removed and replaced with a new set of penalties. You will now only receive a penalty if your payment is 16 days ..read more

Chancellor Jeremy Hunt announced a partial reversal to the SME Research & Development (R&D) tax credit cuts in the recent Spring Budget after facing months of pressure. Startups had warned that the cuts, first announced last November in the Autumn Statement, would hinder growth for early-stage and research-intensive tech companies. The R&D tax credits and relief scheme was already attracting criticism because of suspected fraud and general abuse of the initiative. The autumn reforms to the R&D scheme became effective from April 2023. They key points include: R&D ..read more

Following concern over a cut in R&D tax credits funding for small businesses, the Government has announced a review of the policy. An eight-week consultation, which runs from 13 January to 13 March 2023, sets out proposals on how a single scheme would replace the two R&D tax relief schemes, the Research and Development Expenditure Credit (RDEC) and the small and medium enterprises (SME) R&D relief. A consultation document from the Government published this month acknowledged there was “merit to the case for further support” to SMEs, particularly in the life sciences sector. Incent ..read more

If you are a business owner, you need to consider what to take in salary or in dividends. Having the right balance of these may seem difficult, but it is an important element of managing your business. The UK tax system allows company shareholders to draw money from their companies in two ways – either by taking a salary via PAYE, which will be subject to Income Tax and National Insurance Contributions or by taking dividends, which is instead subject to a unique dividend tax rate and free of NICs. Salary There are two primary reasons, for drawing part of your remuneration from a salary from yo ..read more

A reduction in the generosity of business tax relief for SMEs announced in the Autumn Statement was not a surprise. The SME R&D tax credits and relief scheme was already attracting criticism because of suspected fraud and general abuse of the initiative. So much so, that many other reforms are under way, as the rules have slowly been tightened up. R&D tax credits support business investment by allowing companies to claim an enhanced Corporation Tax deduction or payable credit on their eligible R&D expenditure. The latest reforms to the R&D scheme will become effective from Apr ..read more