Welcome to BPU's Summer Newsletter 2022
In this issue:
- Latest Funding Available
- Tax Update - R&D Changes, NI Increase, Latest on MTD, Trust Registration Deadline
- BPU Staff News - Goodbye Colin, Welcome Kate, Another Bake off!
- Have You Downloaded BPUs Free Tax App?
Latest Funding Available
Latest Government Programme: Help to Grow Management Course
The government has released a new funded scheme called ‘Help to Grow Management Course’. The course covers the following :
- Access to 12-weeks of learning designed to fit alongside work commitments
- Assistance with developing a bespoke business growth plan
- 1:1 support from a business mentor
- Opportunities to network with businesses
The programme is 90% funded by the government so the cost is £750. The Programme is delivered in partnership with Small Business Charter and courses are running at leading business schools across the UK - there is lots of availability in South Wales.
For full details on the above fund and to apply please visit the gov.uk link here
Recovery Loan Scheme to be Relaunched
The Recovery Loan Scheme (RLS) will be relaunched during August 2022 as the government aims to continue supporting recovering small businesses. The RLS launched in April 2021 was originally scheduled to run until 31 December 2021.
In the Autumn Budget 2021, the government extended the scheme by six months to 30 June 2022 and made some adjustments to its terms. The government provided a guarantee of 80% for loans made before 1 January 2022 and 70% for loans after that date. The borrower remains 100% liable for the debt.
According to the British Business Bank, accredited lenders have offered over £4.5 billion, through the RLS, to smaller UK businesses.
The relaunched RLS will support facility sizes of up to £2 million for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million for those in scope of the Northern Ireland Protocol.
The scheme will be open to smaller businesses with a turnover of up to £45 million.
The Government Announces £400 Grant Towards Energy Bills
The UK government has announced further details of the Energy Bills Support Scheme. From October 2022 households will receive £400 off their energy bills. The discount will be made in 6 monthly instalments to help families throughout the winter period.
The £400 will be administered by the energy suppliers themselves and will automatically be taken off monthly bills from October 2022 to March 23.
Consumers with a domestic electricity meter point paying for their energy via standard credit, payment card and direct debit will also receive an automatic deduction of £400 to their bills over the 6 month period.
Energy bill discount vouchers will be given to prepayment meter customers from the first week of each month, issued via SMS text, email or post, using the customer’s registered contact details. These customers will need to redeem these vouchers at their usual top-up point.
Be aware of scammers - no household should be asked for bank details at any point to benefit from this scheme and receive payments. Consumers are urged to report any suspected scams in relation to the Energy Bills Support Scheme.
For further information on any of the above contact
Huw Palin, Director
BPU Staff News
Congratulations On Your Retirement Colin!
BPU’s long-standing Director Colin Russell is retiring this month after 32 years working for the firm. Colin joined BPU in 1990 and was promoted to BPU's Auditing and Technical Director in 2007.
Colin has made a huge contribution to the firm’s success over the years through his technical expertise in audit , charity accounting, government funded projects as well as his impeccable eye for detail and technical knowledge.
Colin has always been there for the staff and one of the team can often be found sitting in Colin’s office for his expert advice. Thank you Colin for your loyal and committed service to the firm , you will be truly missed by all – if you want some peace during your retirement you might want to change your mobile number!!
All the team wish you all the happiness for your retirement with your family, granddaughter and your grandson due in September- congratulations!
New Practice Manager Kate Ward Joins BPU
Kate Ward has been appointed as Practice Manager at BPU. With a degree in Criminology from the University of South Wales, Kate joins BPU after 7 years working as Accommodation Manager at Swansea University. Kate has extensive experience in management and brings a wealth of knowledge in systems, processes, operations, finance and IT.
BPU is now one of the largest Independent firms of chartered accountants in South Wales since its merger last year with Roblins accountants and now employs 42 staff. Kate said: “I am delighted to have joined BPU during this period of growth. My main roles are to work with the directors to make systems and processes as efficient as possible as well as concentrating on IT and helping the firm go paperless”
“The staff at BPU are key to the delivery of the high quality services we provide to clients and part of my role is to ensure that they get the best training and access to the support packages they need to continue to be up to date on all accounts, tax, payroll and sector specific matters”.
When Kate isn’t in the office she is out with her two young sons running, paddle boarding and has previously completed 100K and 50K Ultra races across the UK!
Well done to the BPU masterchefs for all of the baking and organisation
to make the latest 'BPU Bake Off' a success.
Together we raised £150 for Kids Cancer Charity.
Martin Knight BPU Director
R&D Tax Credit Criteria Set to Change
From April 2023 HMRC are proposing a number of changes to the administrative steps associated with claiming Research and Development (R&D) tax credits.
According to the government, the changes will affect companies that claim R&D tax relief under the Research and Development Expenditure Credit (RDEC) scheme or the small or medium-sized enterprises (SME) R&D relief scheme.
A summary of some of the proposed changes are as follows:
- Relief will now be available for cloud and data computing costs
- Each claim will need to be endorsed by a senior officer of the company
- The reliefs will now focus towards innovation in the UK
- Claimants will need to inform HMRC in advance if they plan on making a claim
- Claims will need to include details of any agent who has advised the company.
It is really important that this type of claim is done correctly. HMRC have recently withheld repayments whilst improved review processes are put in place to check the veracity of claims. Please contact us for help and advice on any of the above.
Capital Allowance Changes from 1st April 2023
Introduced in April 2021 and ending on 31st March 2023 companies investing in qualifying new plant and machinery assets are able to claim:
- A super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
- A First Year Allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances.
The relief is not available to unincorporated businesses.
The temporary increase in the Annual Investment Allowance (AIA) that allows 100% tax relief to businesses investing up to £1 million in qualifying expenditure will end in March 2023. The AIA reverts to £200,000 for expenditure incurred on or after 1 April 2023 and special rules apply to accounting periods which straddle these dates.
It may be possible to optimise the super deduction or AIA tax relief available by considering the timing of qualifying assets - please contact us for advice on this.
Making Tax Digital – What’s next for businesses?
As featured in our last newsletter all VAT-registered businesses are now required to follow the MTD rules of keeping digital records and using software to submit VAT returns.
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for income tax from 6th April 2024.
Making Tax Digital for corporation tax will become mandatory before 2026 and the Government are proposing to launch a pilot scheme for this.
If you are unable to get online due to circumstances such as geographical restrictions, a disability or another reason there is a digital exclusion application required – click here.
Final Reminder - Trustees to Register Trusts by 1st September 2022
All trustees of non-taxable trusts that were created on or before 6 October 2020 are required to register the trust with HMRC by 1st September 2022.
For any new trust created from 6th October 2020, it must be registered within 90 days of it being created or becoming liable for tax, or on or before 1 September 2022 (whichever is later).
All trustees of a taxable trust should already be registered with HMRC.
HMRC will issue penalties for non-compliance with these new rules so make sure you register in time. For more information and to register with The Trust Registration Service click here
If you need further advice or assistance registering a trust please contact us directly.
Reminder – Increase to National Insurance Rates
Effective from the 6th July 2022 the level at which people start paying Primary Class 1 National Insurance (NI) increased from £9,880 to £12,570.
Raising the threshold to £12,570 means the point at which NICs are payable is in line with the personal allowance limit for income tax for the first time.
If you earn more than £12,570, you will still see the benefit of this increase as you will pay less National Insurance overall due to the higher threshold.
The Government has released a tool to get an estimate of how the changes to National Insurance contributions will affect you - click here.
If you need any help or advice regarding the increase to NI rates please get in touch and our payroll team will be happy to advise.
For advice on any of the topics discussed in our Tax Update please contact:
Martin Knight, Director
Have You Downloaded Our Free Tax App Yet?
We understand how difficult it can be to have easy access to tax information you can trust when you’re on the go, so we have developed the BPU app to ensure that you have everything you require, in the palm of your hand.
Available for all mobile and tablet devices, our app includes a range of useful tools and up-to-date tax content including:
- Tax tips - a section on practical tax tips covering the family, businesses, selling assets and tax efficient savings
- A range of tax calculators - gross pay to net, gross pay to net (self-employed), VAT due, corporation tax due, company car and fuel benefits, SDLT due, loan repayments and mortgage repayments
- Tax rates - key tax rates tables with explanatory notes so we can now keep you up to date on the current tax position, such as the latest advisory fuel rates which are reviewed quarterly.
- Key tax dates - a reminder of key tax dates
- Regular news updates - a newsfeed to keep you regularly updated on topics that matter to your business
- Expenses logger – allowing you to photograph and edit expenses quickly.
- Mileage tracker – record your journeys in an easy and simple format.
- Cloud portal login – Access cloud portals such as Xero, Sage, IRIS OpenSpace and Quickbooks, and more.
To download the BPU App for free please click on either the apple store or google play logos below.