Welcome to our round-up of the latest business news including the mini budget, the increase of stamp duty threshold, ICO advice for small businesses, and the scrapping of the corporation tax rate increase. Please contact us if you want to talk about how these updates affect your business. We are here to support you!
Scroll down to for our new monthly feature, where this month we introduce Huddersfield Rugby Union Football Club, more than just a sports club!
1. Corporation tax rate increase scrapped
In the March 2021 Budget, Rishi Sunak announced that the rate of corporation tax would increase to 25% from 1 April 2023 where a company's profits exceeded £250,000 a year, with the current 19% rate continuing to apply where profits were no more than £50,000 a year. There was also scheduled to be an effective 26.5% rate on profits between £50,000 and £250,000 a year.
The UK would still have had a very competitive rate compared to other major trading countries as many of those are also increasing corporate tax rates. Nevertheless, the planned increase will not now go ahead in line with the promises made by Liz Truss in her campaign to be Conservative Party leader and Prime Minister.
All companies currently paying corporation tax at 19% will continue to do so.
2. SDLT THRESHOLD INCREASED TO £250,000
Chancellors always like to pull rabbits out of the hat and make surprise announcements at the end of their Budget speech.
Although rumoured in the run up to this mini-budget, the SDLT announcement was still a surprise as house prices have been steadily rising. Increases in mortgage rates are likely to slow the market so the SDLT announcements are designed to stave off a housing slump. Moving house has a multiplier effect on the economy as people tend to spend money decorating and furnishing their new home, with estimates suggesting that doing so drives additional spending worth about 5% of the house value.
It is thus crucial to ensure medium-term confidence in the property market and maintain the growing momentum as the UK economy recovers. The Government has therefore cut SDLT for home buyers across England and Northern Ireland.
For residential property transactions completed on or after 23 September 2022;
- The Nil Rate Band (NRB) has been increased from £125,000 to £250,000.
- The NRB for first-time buyers has been increased from £300,000 to £425,000. This applies where first-time buyers purchase a property costing less than £625,000 (previously £500,000).
Different taxation rules apply to property transactions in Scotland and Wales and no changes have been announced in this regard.
3. ICO SME web hub - advice for all small organisations
The Information Commissioner's Office (ICO) has a useful webpage with advice and guidance for all small organisations, including SMEs, small businesses, sole traders, small charities, groups and clubs, and small start-ups.
The webpage includes a run-through of data protection and bite-sized advice on how to build trust and save money through stronger data protection compliance. Topics include:
- Getting started with data protection;
- Key data protection terms you need to know;
- Compliance checks;
- How to respond to a personal data breach; and
- How to deal with data protection complaints.
See: SME web hub – advice for all small organisations | ICO
DIARY OF MAIN TAX EVENTS
OCTOBER / NOVEMBER 2022
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Date
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What's Due
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1/10
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Corporation tax for year to 31/12/21, unless quarterly instalments apply
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5/10
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Deadline for notifying HMRC of chargeability for 2021/22 if not within Self-Assessment and receive income or gains on which tax is due
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19/10
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PAYE & NIC deductions, and CIS return and tax, for month to 5/10/22 (due 22/10 if you pay electronically)
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1/11
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Corporation tax for year to 31/01/2022, unless quarterly instalments apply
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6/11
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Ensure PAYE software is updated for the changes in NIC rates, as a result of scrapping the Health and Social Care Levy
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19/11
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PAYE & NIC deductions, and CIS return and tax, for month to 5/11/22 (due 22/11 if you pay electronically)
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Reminder of our charity fundraising event:
Thursday 13 October, Quiz night!
https://www.sheards.co.uk/news/events/archive/article/2022/July/sheards-annual-quiz-night
For those who are unable to attend, you can still show your support for The Kirkwood via our just giving page.
Thanks so much
Kevin & Carolyn