The government has launched a consultation on simplifying the UK's research and development (R&D) tax relief system, driving innovation and growing the economy. The consultation runs to 13 March 2023 and sets out proposals on how a single scheme could be designed and implemented. This would replace the two R&D tax relief schemes currently in place – the Research and D ...
HMRC targeting Airbnb landlords
HMRC have announced that they are looking closely at landlords operating short-term property lettings, which are typically booked through online property sites such as Airbnb, Booking.com, VRBO and Holiday Lettings. This is in an attempt to “stamp out” what HMRC sees as tax evasion within this sector. HMRC is writing to ‘a small number of customers who might have earned income ...
Increased Corporate Tax rates are effective from April 2023
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 ...
Bank of England raises interest rates to highest level in 14 years
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 ...
Energy bill support for firms to be reduced from April
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 ...