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Building a future in uncertain times
May 2022 Newsletter

Please get in touch if we can be of assistance with any of the issues raised
e: advice@barringtons.co.uk t. 0800 019 1744
 
ARE YOU SAVING TO MEET FUTURE TAX PAYMENTS?
Whether you are self-employed or run your business through a company, the profits you produce are subject to tax less any reliefs for past losses or investments in assets that qualify for tax relief.
As most accounts software packages do not allow for these tax liabilities on a month-by-month basis, there’s a temptation to see any cash balances as available for spending. In reality they are needed to help fund future tax payments. Don’t put off creating realistic reserves. We are happy to discuss. For more see our blog.
 

 
MAKING TAX DIGITAL MANDATORY FOR VAT-REGISTERED BUSINESSESS
MTD became mandatory for all VAT registered businesses on 1 April 2022.
The government says MTD helps taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs. VAT-registered businesses that have not yet signed up to MTD should do so now. Our cloud-accounting team are experts in simplifying the process. For more go here.
 
REORGANISING COMPANY STRUCTURES TO SAVE TAX
When corporation tax increases from 1 April 2023, companies will need to consider three scenarios:
  • The main corporation tax rate is increased to 25% where profits are over the upper profits limit, set at £250,000.
  • A small profits rate will apply for companies whose profits are equal or below the lower profits limit, set at £50,000. The small profits rate is set at 19%.
  • Companies with profits between the lower and upper limits (£50,000 and £250,000) will pay tax at the main rate of 25%, but this will be reduced by marginal relief.
Need to know more? See here
 

BUSINESS RESILIENCE IN THESE TOUGH TIMES
If Covid wasn’t enough businesses are now hit by spiralling energy costs and the hike in National Insurance. Here are a few tips to support sustainability:
  • Review your budgets and set realistic and achievable targets for the remainder of 2022 and know your cash flow forecast inside out.
  • Get rid of ‘won’t pay’ customers, review your debtors list and chase up overdue invoices.
  • Make sure your terms of business contain explicit payment terms and assign responsibility to one individual for invoicing and collections.
  • Review your list of products and services and eliminate those that are unprofitable.
  • If possible, agree extended payment terms with suppliers in advance.
  • Look at your detailed expense list in your profit and loss account and assess if there is room for negotiation in any of your fixed expenses.
  • See if you can make small cut backs. Use ‘bottom up’ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost saving.
  • Review and flowchart the main processes in your business (eg: sales processing, order fulfilment & shipping). 
We help businesses develop long term strategies for success. For more information please email advice@barringtons.co.uk
 
GIVING SHARES TO EMPLOYEES
Where companies give shares to employees in the company or group that they work for they will generally be taxed on the difference between the market value of those shares and the amount paid, if any. HMRC has a template to report transactions. Please contact us for help.
 
GUIDANCE FOR BUSINESSES WANTING TO OFFER HELP TO UKRAINE
Businesses can find ways to help with the situation in Ukraine by answering calls for specific aid and goods. The Homes for Ukraine scheme allows individuals and businesses to bring Ukrainians to safety, including those with no family ties to the UK. Sponsors are asked to provide homes or a spare room. In return, they will receive £350 per month. See Homes for Ukraine webpage.
 
END OF TAX YEAR PAYROLL PROCEDURES
As the 2021/22 tax year has now ended, employers need to carry out the following end of year procedures:
  • Provide your employees with their P60 annual summaries by 31 May 2022
  • Prepare forms P11D for employees’ expenses and benefits by 5 July 2022
  • Update your employees’ payroll data for 2022/23, in particular their new tax codes
We would be delighted to help. Email payroll@barringtons.co.uk 

NEW GUIDANCE ON LIVING SAFELY WITH COVID-19
The UK Health Security Agency (UKHSA) has published updated guidance to support the next stage of the COVID-19 pandemic. Go here to find a private test provider.
 


CHANGES TO VAT RATES
Many in the hospitality sector were hoping that the Chancellor would extend the 12.5% reduced rate that has applied since 1 October 2021 but, as scheduled, the rate has reverted to 20%.
The increase applies to hospitality, visitor attractions and catering services including restaurants and takeaways. This impacts the VAT Flat Rate Scheme percentages from 1 April 2022 so businesses should ensure that their pricing policies are updated. Please talk to us if you need any assistance with your VAT affairs.
Email our specialist Colin Woodward 

NATIONAL INSURANCE RELIEF WHEN HIRING VETERANS
Under a new scheme, businesses hiring military veterans can save thousands of pounds in employer National Insurance Contributions. Employers do not have to pay NICs for veterans in their first year of civilian employment. See here for more.

DIGITAL GROWTH GRANT
The government has launched a new competition to boost the growth of innovative tech start-ups and scale-ups across the country. The £12.09 million Digital Growth Grant focuses on opening up access to skills training. Click here for more. 
 
NEW LAW TO RESOLVE REMAINING COVID-19 COMMERCIAL RENT DEBTS
A new law is now in place to help resolve certain remaining commercial rent debts accrued because of the pandemic. This means that a legally binding arbitration process will be available for eligible commercial landlords and tenants who have not already reached an agreement. See here for more.
 
 
AND FINALLY... GET READY TO SIT BACK
With self-driving technology rapidly developing across the globe, Britain’s first vehicles approved for self-driving could be ready for use later this year. Changes to The Highway Code aim to ensure the first wave of technology will be used safely. For example motorists must be ready to resume control (in a timely way!) if they are prompted to, such as when they approach motorway exits.
See here for more. 
Anne Bailey, a Client Services Manager in our Newport office, is part of a hockey team helping to raise money for Alder Hey Children’s Hospital oncology department with a Dawn to Dusk match at Deeside Ramblers Hockey Club.
It is a cause very close to Anne’s heart. She says: “On May 21 a core group of members will play hockey from 5am until 9pm, a huge undertaking. They will be supported over the day by other groups from under 8s, senior teams to walking hockey members. A truly club wide endeavour.
“Funds will be split between Alder Hey which is currently treating my cousin’s little boy, Max, who is very poorly and the club’s floodlight appeal.”
Anne and her family have played hockey at Deeside for years and she will be among the players undertaking the challenge.
Donations can be made at the JustGiving link here
There’s a cake stall on the day also for anyone who would like to help by baking a cake.
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HELP & SUPPORT

Contact us:
t. 0800 019 1744
e: advice@barringtons.co.uk

Contact us for Payroll inquiries:
e: payroll@barringtons.co.uk 
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