One of the biggest challenges for any business is managing its working capital requirements, to ensure that there is sufficient cash within the business to fund day-to-day operations.
Companies House has recently been writing to clients where they suspect that the PSC (Person with Significant Control) register is incorrect or has not been updated following changes in shareholders or ownership, as identified on the Companies confirmation statements.
It is likely that The Chancellor will continue to freeze a number of thresholds and allowances meaning that many people will be dragged in to paying more tax in one way or another. This is called “fiscal drag”.
From January 2000 to the start of 2022, inflation averaged 2.3%. It has now (May 2022) jumped to 9% in the 12 months to April, up from 7% in March the highest for 40 years. That means that if you were born after the early 1980’s, you have not experienced the sort of economic environment we are now experiencing.
The Government announced a major reform to the way in which a business owner’s trading profits are allocated against the relevant tax year for income tax purposes – otherwise known as their ‘basis period.’
Having recently written an article of the now infamous “mini budget” in which I talked about it being very much a budget favouring business, this Autumn Statement has, in stark contrast, reverted to one of increased costs and taxes for business.
As expected, the Chancellor did not make changes to the rates of income tax, national insurance, inheritance tax or capital gains tax (CGT), but what he did do is freeze the threshold on each one of these except CGT, meaning the rates everyone is paying today will be the same rates that will apply after April next year.
After much adverse publicity in recent days and weeks around exaggerated and fraudulent R&D claims, particularly in relation to claims under the Small & Medium Enterprises (SME) scheme, the Chancellor has reacted by reducing the tax benefits potentially available through an R&D SME claim.
As anticipated due to the economic deficit, Jeremy Hunt today announced measures that will see tax increases amounting to a cost to taxpayers of tens of millions of pounds.