Newsletter - Is it worth getting Business clothing? & more
BUSINESS CLOTHING
We're often asked whether clothing or workwear are allowable business expenses. Unfortunately HMRC has strict rules that state it must either be a uniform (likely to have business branding) or be protective clothing.
General clothes (even if you only wear them for work) are not allowable.For example a suit you only wear for meetings isn't an allowable businessexpense and neither are fluffy uggs you bought to work from home in.
STATE OF AFFAIRS
Economic indicators and analysis are currently confused.
GDP growth in Q1 at 0.1%, hailed by some, criticised by others. Gloomyinflation predictions from the Bank of England vs claims of recoveryaround the corner. Added to this we are seeing an increase in resistancefrom HMRC when we are submitting tax scheme approval requests suchas R&D claims and EIS approvals. Where HMRC can delay, refer or deny aclaim they are doing so.
In short things are difficult, and there are no consistent signs of recovery yet. Collect what you are owed and prepare your customers for price increases.
P11DS
Each year an employer must submit a return to HMRC by the 6th July 2023for each employee who received a benefit in kind from the company e.g.health insurance, company car, gym membership. The company must pay ablended rate of 14.53% employers national insurance on the total benefitin kind value and this must be paid by the 22nd July 2023.
Each employee must be given a copy of the P11D and ensure they accountfor the income tax due in their self assessment.
We are able to complete these P11D's for you at a nominal fee. ContactDaniel if you have any questions or think you may be liable for a return.
SELF ASSESSMENTS
When you start working for yourself, registering for Self Assessment is vital. The deadline for registration is the 5th October in your business'second tax year.
Self Assessments are used to inform HMRC about any taxable income andgains not reported through PAYE.
You may need to register if you're a company director, receive childsupport, receive income from rental property or have any other incomenot accounted for under PAYE.