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.

WHIT HOLIDAYS AND JUBILEE WEEKEND
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.

OTHER
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.

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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.

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)