From 1 April 2023, corporation tax will increase to 25% where a company’s profits exceed £250,000 a year. The current 19% rate will however continue to apply where profits are no more than £50,000 a year. Where a company’s profits fall between £50,000 and £250,000 a year, an effective rate of 26.5% applies to profits in excess of £50,000. Some companies that are connected or i ...

The Bank of England (BoE) has raised the base rate of interest to the highest level in 14 years. The BoE raised interest rates for the tenth consecutive time on 2 February with a half point increase taking the base rate from 3.5% to 4%. The decision was taken after the Monetary Policy Committee (MPC) voted by a majority of seven to two to increase the base rate by 0.5%. The ...

Businesses will receive reduced support for their energy bills from April as the UK government attempts to cut the cost of compensating for soaring gas and electricity prices, the Treasury has confirmed. The Treasury said that the government will cap support at £5.5 billion for businesses over 12 months from 1 April 2023. Bills will automatically be discounted by up to £6.97 ...

All employers are required to pay their staff either the National Living Wage (for those aged 23 and over) or National Minimum Wage (for those of at least school leaving age). The Living Wage Foundation is a charity that campaigns for improved rates of pay for those on low wages, with accredited employers, including many charities, committed to paying their staff at pay rates o ...

Over half of UK companies currently face difficulties in adapting to the new rules for trading goods with the EU, according to a British Chambers of Commerce (BCC) survey. The survey also found that 77% of respondents who exported were unable to identify any growth as a result of the rule changes. The post-Brexit trade deal, the trade and co-operation agreement (TCA), sees Br ...

VAT Notice 701/1 How VAT affects charities has seen the business test section updated to reflect a two stage test to bring it into line with a recent policy change. It makes clear that although an organisation may be run on a not-for-profit basis it could still be regarded as a business for VAT purposes if there is a direct link between the services received and the payment mad ...

The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder, the UK government has announced. Under the scheme, the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600, ...

It has been confirmed by HMRC that the naming of a building after a donor who had given a substantial amount to the charity does not count as a donor benefit that would restrict a charity’s ability to claim Gift Aid on the donation. For this treatment to apply the naming must not act as an advertisement or sponsorship for a business. HMRC’s guidance on Gift Aid has been updated ...

The Bank of England (BoE) has raised UK interest rates by half a percentage point to 3.5%. It is the ninth consecutive increase and takes the base rate to its highest level for 14 years as the Bank battles to stem soaring prices. The Bank's Monetary Policy Committee (MPC) voted 6-3 in favour of putting rates up by 0.5%. The BoE also warned that further increases may be necess ...

Chancellor Jeremy Hunt has announced that the Spring Budget will be delivered on 15 March 2023. Mr Hunt stated that he has commissioned the Office for Budget Responsibility (OBR) to prepare an economic forecast to accompany the Budget. The Spring Budget will be the Chancellor's second fiscal event, following November's Autumn Statement. Mr Hunt used the Statement to reverse m ...