Moore Accountancy Update

Autumn is very much upon us.

We were determined to keep our heating off until October however the boiler automatically kicked on one morning, which in my mind means Autumn has arrived!

We recently had significant IT issues which has delayed VAT and payroll processing, as well as our ability to access emails (and hence respond to them).

We are looking at back up options to our data server and access to it, to avoid this happening again. It is however a cautionary tale about being over-reliant to the internet. Maybe we should bring back paper and pen which is what I trained with in the 1990s!! (only kidding....)


NING
Ning will be heading off this month for maternity leave.
Katie and Sid will be covering her cilent files until maternity cover can be found. We will of course update you as and when a new team member joins us.

CHRISTMAS
We will be closing the office from Thursday 22/12/22 and reopening on Tuesday 03/01/23 so that the team can spend quality time with their families.

OTHER
Moore Accountancy continue with hybrid working, as 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.

The mini-budget was recently announced with a raft of changes issued - many of which were reversing plans created by the previous Chancellor.

Our blog - https://mooreaccountancy.co.uk/mini-budget-september-22/ details the key changes, and when the Finance Bill or the Full Budget is delivered, we will be able to update on the practicalities of the announcements.

In the meantime, have a read and get in touch if you wish to discuss any of the proposals.

EDIT - 45% tax rate abolition has been repealed
 

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The changes to the basis of assessment of self-employed profits are scheduled to change from 06/04/24.
The new rules mean that profits (and losses) will be assessed based on the amounts arising between 6/04 and 5/04 instead of the profit/loss of an accounting period ending in the tax year.
This means that where the business accounts do not coincide with tax year the profits or losses will need to be apportioned. This is intended to coincide with the start of Making Tax Digital for income tax.

Transitional rules proposed for the previous 2023/24 tax year could result in large tax bills for some sole traders and partners, particularly those with an existing 30/04 year end.
The profits of year ended 30/04/22 would be taxed in 2022/23 under the current rules with 2024/25 taxing profits arising between 06/04/24 and 05/04/25 under the new rules.

But what about 2023/24?
The profits taxed in 2023/24 would be those for year ended 30/04/23 plus the period 01/05/23 to 05/04/24 - in total 23 months profits!
The good news is that there would be a deduction for “overlap relief” (as much as11 months) which typically arose when profits were taxed twice at the start of the business - but those will often be much lower than the extra 11 months being taxed in 2023/24.

The transitional provisions provide for the “excess” profits to be spread over the next 5 tax years to smooth out the excessive tax bill. 

Note that if your sole trader or partnership business has a year end of 31/03 then this will not affect you.

 

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19/10/22 - PAYE & NIC deductions for month ended 05/10/22 (September payroll)

31/10/22 - Corporation tax due for year to 31/01/22

31/10/22 - Filing for any Self Assessment Tax Returns via PAPER

19/11/22 - PAYE & NIC deductions for month ended 05/11/22 (October payroll) 

30/11/22 - Corporation tax due for year to 28/02/22