Moore Accountancy May 2022 Newsletter
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Moore Accountancy Update

A recent visit to an Accountancy Expo in London was a great chance for us to meet suppliers, get required CPD and catch up with other accountants. It is nice that group events are opening up again, and we hope this new monkeypox will not be an issue.

The extra bank holidays coming up will hopefully give you a break. There are a number of people having street parties and many local parks have events to enjoy, if you want to get involved - or of course, enjoy the long weekend if you prefer!

It is also over half term, so a few of our team will be taking leave at this time, so please check the emails from us detailing who will be away.

For your reference, Katie, Ning, Monia and Susie will all be off for the two weeks from 27/05 - 10/06.

Moore Accountancy will continue with hybrid working for the forseeable future, as on the whole it works with the team dynamics and their welfare, both mentally and physically.

Emails will continue to be passed to the relevant team member and dealt with as if they were in the office.

If you have missed any of our previous newsletters, then our website has a backlog of them here.

Prince Charles delivered the Queen's speech recently.  The speech highlighted some of the 38 laws that ministers intend to pass in the coming year. 
He outlined that it was the governments priority to grow and strengthen the economy and help ease the cost of living for families. Critics have argued the government is not doing enough to help struggling families as inflation soars, so we look forward to seeing if the Chancellor comes up with a package later this month.
Some of the main business points include:
•    The Brexit Freedoms Bill which will give ministers the power to change current EU laws;
•    A Levelling up and Regeneration Bill to give councils new planning and redevelopment powers; 
•    Changes to business rates;
•    The new UK Infrastructure Bank, a body designed to increase financing of infrastructure projects;
•    An online safety Bill to improve regulation of content appearing on the internet;
•    A Data Reform Bill to replace EU rules on data protection;
•    A draft Digital Markets, Competition and Consumer Bill to tackle fake consumer reviews and boost competition;
•    An Economic Crime and Corporate Transparency Bill will strengthen the investigatory powers of Companies House and aim to increase corporate transparency;
•    A Financial Services and Markets Bill will aim to simplify EU rules governing the sector

The new Financial Services and Markets Bill, will support consumers by protecting access to cash. It will ensure the continued availability of withdrawal and deposit facilities across the UK, and that the country’s cash infrastructure is sustainable for the long term.

The Bill will also enable the Payment Systems Regulator to require banks to reimburse authorised push payment (APP) scam losses, totalling hundreds of millions of pounds each year. This will ensure victims are not left paying for fraud through no fault of their own.

We will keep you updated over the next few months of business-related developments and once legislation is passed we will ensure you get the information you need if these changes affect you.

HMRC confirmed that more than 142,000 taxpayers have used HMRC’s online ‘Time to Pay’ facility to spread the cost of their self-assessment tax bill since April 2021.

The self-assessment deadline for 2020/21 tax returns was 31 January 2022 but, this year, HMRC gave taxpayers until 1 April to pay any tax owed and not face penalties.

Individuals who were unable to pay in full but had a tax bill of under £30,000 could use the online Time to Pay service to spread the cost into manageable monthly instalments. Those who owed more than £30,000 or needed longer to pay could still use the Time to Pay service but they had to contact HMRC to arrange it.

HMRC has said that, since April 2021, self-assessment taxpayers have used this service to pay nearly £475 million worth of tax in instalments.

It should be noted that any self-assessment taxpayers who did not pay their outstanding tax by 1 April now face a 5% late payment penalty on any outstanding tax.


With Benefit in Kind (BIK) P11d’s for 2021/22 due by 6/07/22 it is timely to remind employers of the rules for T & S, particularly as HMRC have recently issued some updated guidance and useful examples of their interpretation of the law.

Tax relief for employee travel costs is available provided the journey isn’t ordinary commuting or private travel. Thus, amounts paid by the employer would not be taxable.
No relief is available for ordinary commuting, which is travel between home (or a place that is not a workplace) and a ‘permanent workplace’.
There are a number of criteria for determining if a workplace is temporary or permanent, but in general a workplace will always be a permanent workplace if the worker:
  • regularly goes to the same workplace in the course of a period of continuous work which lasts or is likely to last more than 24 months, or
  • regularly goes to the same workplace for all or almost all of the time for which the worker is likely to hold (or continues to hold) the same employment.
Where the journey qualifies for tax relief then necessary and reasonable subsistence costs associated with that journey would also qualify for tax relief, and if paid or reimbursed by the employer would not be taxable employment income.
Travel by workers operating via Personal service companies (IR35)
From 06/04/16, new provisions changed the treatment of T & S expenses for workers providing their personal services to clients through employment intermediaries (IR35).

Each engagement the worker undertakes that falls within IR35 is regarded as a separate workplace and the worker’s T & S expenses are treated as if the worker was directly employed by the engager. This will mean that generally no relief will be given for home-to-work travel costs and associated subsistence. However, in certain circumstances, the new provisions are modified or disapplied.


HMRC has updated its guidance on tax treatment of tips, gratuities, service charges and troncs to include details on how to handle electronic payments.

The payment of tips is commonplace for employees in the catering and service industries. As the pandemic has accelerated a move away from payment in cash, there has also been a shift towards customers paying tips electronically.

The updated guidance includes examples of systems for the electronic payment of tips. The guidance reflects that a payment made electronically does not change any of the basic principles for deciding how tax is to be accounted for on those tips and whether a national insurance contributions (NIC) liability arises.

Where the employer collects the tips and pays them to employees, the employer is required to deduct income tax and NIC from these payments.

Where customers pay tips directly to staff, each employee is responsible for declaring these earnings to HMRC. Any tax due is likely to be collected through an adjustment to the employee’s tax code. Direct payments from customers are not subject to NIC.

There are also separate rules for payments made through ‘troncs’ (a special pay arrangement used to distribute tips, gratuities, and service charges where a person other than the employer is responsible for sharing the amounts). These are also detailed in the updated guidance.

See: Guidance on tips, gratuities, service charges and troncs 



Here is a summary of the main tax breaks for capital expenditure that are currently available: 

• 130% relief for investment by limited companies in new plant and machinery that would normally be dealt with in the general pool

• 100% relief for investment in new and used plant and machinery by all businesses but limited to the first £1 million

• 50% relief for investment by limited companies in new plant and machinery that would normally be dealt with in the special rate pool (typically fixtures in buildings and long-life assets)

• 18% writing down allowance for plant and machinery in the general pool

• 6% writing down allowance for plant and machinery in the special rate pool

• 3% straight line write off for expenditure on the construction or refurbishment of commercial buildings.

Some of these tax breaks may continue beyond 31/03/23. We await further announcements – probably in the Autumn Budget.


The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

The Scheme is to help businesses of any size access loans and other kinds of finance so they can recover after the pandemic and transition period.

The Recovery Loan Scheme will accept applications until 30 June 2022.
Up to £10 million is available per business. The actual amount offered, and the terms, are at the discretion of participating lenders.

The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt. Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.



Unless there is full reimbursement of fuel provided for the private use of a company car there is a benefit in kind (BIK) charge based on a fixed figure of £24,600 which is multiplied by the CO2 emissions % that is used to calculate the company car benefit for that vehicle.

For a high emission car that percentage can be as high as 37%, resulting in a BIK charge of £9,102 and an income tax bill of £3,640.80 for a higher rate taxpayer.

Even with current fuel prices, that would be an awful lot of private mileage, so the employee should consider reimbursing the employer using the HMRC approved mileage rates by 5 July 2022 for 2021/22


19/05/22 - PAYE & NIC deductions for month ended 05/05/22 (April payroll) 

31/05/22 - Corporation tax due for year to 31/08/21

19/06/22 - PAYE & NIC deductions for month ended 05/06/22 (May payroll) 

30/06/22 - Corporation tax due for year to 30/09/21

19/07/22 - PAYE & NIC deductions for month ended 05/07/22 (June payroll) and Q1 (if paid quarterly) 
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Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom

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