Scaling your start-up is a crucial decision for business owners, as it can directly impact the business’s long-term success. Typically, growth involves increasing revenue and resources at a consistent rate, whereas scaling entails identifying ways to grow more quickly and efficiently. This approach helps ensure that your business expands at a sustainable rate. Strategies for enhancing profitability Scaling your business should prioritise boosting sales and profits. While attracting new customers might be your first thought, building existing client relationships can be more cost-effective. Thi ..read more

One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief. The Patent Box is one such scheme, designed to provide a lower rate of Corporation Tax to profits earned on patented inventions. Companies which elect into the Patent Box can benefit from a 10 per cent rate of Corporation Tax, provided they meet certain criteria: Liable to Corporation Tax Owns or has exclusively licenced-in the relevant patent The patent licence is granted by either the UK Intellectual Property Office, the European Patent Office or by th ..read more

If your business has a turnover of £90,000 or more and sells products or services subject to VAT, then you must register to pay it and file a return to HM Revenue & Customs (HMRC) – at least once every three months. Your VAT return is a critical component of your financial obligations because it tells HMRC: How much VAT you have charged How much VAT you have paid How much VAT you must pay to HMRC Whether there are any discrepancies within your records Without expert support and the right record-keeping tools, it’s easy to get VAT wrong because it requires you to provide detailed informat ..read more

Short-term and long-term rentals each offer distinct advantages and challenges that can significantly impact a property investor’s portfolio. Here’s an overview of the pros and cons of both approaches. Short-term rentals Short-term rentals have emerged as a popular alternative to traditional hotel stays, offering property owners a lucrative opportunity to generate income. This model caters to travellers seeking homely accommodations for brief periods, tapping into the growing trend of experiential travel – Airbnb often comes to mind when thinking of this style of renting. They offer the potent ..read more

In the current property market, environmental tax benefits are useful in encouraging the adoption of sustainable development and energy-efficient practices among residential property buyers and developers. These financial incentives offer a compelling reason to invest in green technologies and eco-friendly home improvements, aligning financial gains with environmental stewardship. Here’s how you can tap into these opportunities to not only benefit financially but also contribute to a greener planet. Understanding environmental tax benefits The Government champions environmental tax benefits as ..read more

Value Added Tax (VAT) is a tax applied to the sale of newly constructed or substantially converted properties and on the goods and services purchased during the development process. The standard VAT rate is 20 per cent, but property development can involve several different VAT rates depending on the type of work being carried out and the nature of the property. Understanding VAT implications is crucial for property developers, as it affects the cost and pricing of development projects. Here are key points every developer should know: Standard-rate VAT on new builds Generally, the sale of new ..read more

In light of the Spring Budget’s updates to the High-Income Child Benefit Charge (HICBC) thresholds, it is crucial for families, particularly those with fluctuating incomes, to re-evaluate their eligibility for child benefit. The Government has revised income brackets, significantly impacting families with a highest-earning taxpayer earning no more than £80,000 per annum. As the deadline of 5 July 2024 approaches, timely registration (or re-registration) for Child Benefit is essential to maximise entitlement without forfeiture of payments. Understanding child benefit and the high-income charge ..read more

HM Revenue & Customs (HMRC) has initiated a “call for evidence” as part of its ongoing Tax Administration Framework Review, specifically targeting the areas of enquiries and assessment powers, penalties, and safeguards. This move, announced on 15 February 2024, signals HMRC’s intent to scrutinise and potentially revamp its approach to tax investigations, compliance, and penalty regimes. For businesses operating in the UK, understanding and preparing for these potential changes is going to be crucial in maintaining compliance and navigating the evolving tax landscape effectively. Key areas ..read more

In recent developments, the HM Revenue and Customs (HMRC) has seen a notable decrease in the number of civil investigation cases against offshore, corporate, and wealthy taxpayers. Over the last five years, the figures have more than halved, with cases dropping from 1,417 in the 2018-19 fiscal year to 627 in 2022-23. This reduction has sparked criticism and concerns regarding the effectiveness of HMRC’s enforcement capabilities. HMRC defends its position by emphasising a strategic pivot towards focusing on the most significant instances of tax fraud. The authority highlights its comprehensive ..read more

The recent Spring Budget introduced significant changes to VAT (Value Added Tax) for businesses – particularly around the registration threshold. These changes have sparked a discussion, especially amongst our clients on their potential to impact businesses. VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed. In the UK, there are three main VAT rates: sta ..read more