Wes Lambert CPA, FGIA, CAE, MAICD’s Post

45 Conservative MPs have demanded business rates reform and a VAT cut for struggling pubs and restaurants. This is the letter Simon Jupp MP submitted to The Chancellor with their signatures. These lines in particular are of note… ”ONS data shows that if the sector’s payments were consistent with its ‘fair share’ of turnover, it would be paying £2.4 billion less annually than it is scheduled to in business rates.” “Economic evidence shows that with the right tax framework, hospitality can rapidly generate economic growth - at up to 6% annually over the next five years. A cut will both support the sector through a challenging period and help accelerate economic growth in every part of the UK.” More of this support, please…

UK Government announces permanent business rates cut for highstreet The UK government recently announced changes to business rates in the 2024 Autumn Statement aimed at easing the burden on high street businesses. These adjustments include a shift from the current 75% relief to a 40% permanent relief for the retail, hospitality, and leisure sectors starting in 2025-26, capped at £110,000 per business. Beginning in 2026-27, these sectors will benefit from permanently lower rates, with two distinct, reduced multipliers introduced to further support them and keep more businesses viable amid challenging market conditions. However, some stakeholders have voiced concerns that these reductions may not be enough to fully offset rising costs. Critics argue that the changes could still lead to significant rate increases for many businesses after 2025. Additionally, there is ongoing debate around the fairness of the system, as some larger businesses are expected to face higher multipliers to balance the funding changes, which could add pressure to larger high street retailers 📞 +44 20 8543 1991 🌐 https://lnkd.in/gPK7ur9s hashtag #TaxTips #DirectorRemuneration #BusinessFinance #HMRC #TaxEfficiency #UKBusiness #TaxHelp #BusinessSolutions #TaxExperts #UKTax #TaxRelief #AccountingServices #TaxPlanning #AccountingExperts #Finance #FinancialAdvice #UKFinance #VAT #CharteredAccountants #Accounting #Bookkeeping #Payroll #TaxReturns #AccountingExperts #AccountantsinLondon #UnitedKingdom #Uk

The recent reduction of the Bank of England’s base rate to 5% will directly impact HMRC’s interest rates for tax payments. Previously, the base rate was 5.25%, and this adjustment will lower both the interest charged on late payments and the rates paid on repayments. Key changes: - Late Payment Interest: Decreasing from 7.75% (base rate + 2.5%) to 7.5% - Repayment Interest: Decreasing from 4.25% (base rate - 1%) to 4%, with a minimum of 0.5% These reduced rates will take effect from 12 August 2024 for quarterly instalments and 20 August 2024 for non-quarterly payments. Read more here: https://lnkd.in/dD_yAQSs #TaxUpdate #BankofEngland #HMRC #InterestRates #TaxPlanning #TaxDash

I recently came across Nicks's insightful post about the National Insurance increase and its implications (shared below:) It's got me thinking about how changes like this affect not just our personal finances but also the wider economy, businesses and future planning for public services 🤔 While it's clear that such measures aim to address pressing issues, whether funding the NHS, social care or other critical needs it’s equally important to assess the broader impact 🏥 How does this affect the cost of living, particularly during times of economic uncertainty? How can businesses, especially SMEs, adapt to these changes while maintaining growth and supporting employees? 💡 We’re at a point where collaboration between policymakers, businesses, and individuals is more crucial than ever. Transparency in how funds are allocated and exploring alternative solutions to fiscal challenges could help build trust and alleviate some of the concerns being raised. I'm curious, what are your thoughts? How do you think this increase will impact your sector or personal circumstances? 💭 Let’s continue the conversation. 👇

HMRC Updates Interest Rates for Late and Early Payments Following BOE Rate Cut; SAYE Schemes Also Affected: Following the Bank of England's 5% rate cut, HMRC will update interest rates. From 20 August 2024, the late payment rate will be 7.5%, and the early repayment rate 4%. Starting 16 August 2024, the bonus rate for five-year SAYE schemes will be 3%, with an early leaver rate of 1.33%. #uktax #taxsavings #taxation #taxadvices #taxpayers #smallbusinessowners #ukaccountant

📢 HMRC interest rates to be reduced The Bank of England’s decision to reduce the base rate to 5% means that HM Revenue & Customs (HMRC) will also reduce their interest rates. The interest rates charged by HM Revenue and Customs on late tax payments, as well as the rates they pay on repayments are linked to the Bank of England’s base rate. Late payment interest is charged at base rate plus 2.5%. Repayment interest is paid at base rate minus 1%, subject to a minimum of 0.5%. The reduced rates will apply from: ·        12 August 2024 for quarterly instalment payments; and ·        20 August 2024 for non-quarterly instalments payments. If you need help with your tax or are concerned about being able to pay a tax payment, please get in touch. We can work with you to make a payment arrangement with HMRC. #Tax #HMRC #InterestRates #BankOfEngland #TaxAdvice #Accounting #Finance #UKBusiness

Hon. Simon Watts comments in the BusinessDesk NZ article highlight just how disconnected the top brass is from the real operations at Inland Revenue NZ. The claim that 'fairness is applied equally across the spectrum and IRD' is a complete fabrication. The truth? Inland Revenue NZ is a mixed bag of individuals who interpret requirements differently. Personalities, not policies, dictate whether the department takes action, remits debt, or processes requests. The only thing they achieve consistently is failure. I fully agree that using sales zappers is fraud and a bad move for your business's value. But let's be real—retail and hospo margins are razor-thin. Sometimes, using these zappers is a desperate attempt to make payroll and pay suppliers, who are crucial for keeping the doors open. Remember in 2019 when an IRD program lead botched 70,000 WFFTC assessments, costing over $80m? That person is still employed. Why? Inland Revenue NZ is riddled with issues, but hey, let's just take it out on NZ taxpayers...

It's becoming increasingly clear (and hardly surprising) that where the government aims to foster growth by spending directly on infrastructure, they will take away with the other hand as the new tax rises hamper investment from the private sector. It's all very well to create extra jobs in the energy sector, but not so great when job creation is being discouraged in the wider economy. The tax rises are threatening growth both in the short term via less jobs and less demand for investment goods, and longer term as there will be less growth in the stock of capital, a key factor that allows the economy to produce more and with less inflationary pressures. According the the below article, 'Labour said that the rises were needed to "restore desperately needed economic stability to allow businesses to thrive". And 'A spokesperson for the Treasury said: "This government is committed to delivering economic growth by boosting investment and rebuilding Britain.”' It seems that they will achieve neither with the current strategy. The onerous costs on businesses will likely lead to more inflation and therefore higher interest rates for longer, putting even more pressure on businesses, with workers paying the price in the form of lower wage growth and lower employment.

I CAN’T LET THIS GO: All the talk about the increase in ENIC has been about the 1.2% increase, not the shift in Threshold. Was this done on purpose? I haven't seen a single commentator, newsreader or "industry titan" who seems to understand the basic impact of it. So here it is: Every employer now pays an extra £615 in ENIC tax for every single member of staff earning more than £9,100 PLUS an extra 1.2% on every pound paid over £9,100. And this is outside of the increase in pay - it's nothing to do with inflation. It’s just new tax. The Threshold shift is so great that the impact is only matched by the 1.2% increase, when the salary is over £56,300. If you have staff working 15 hours at £12.21 the annual ENIC per employee used to be £58 per annum. With the new threshold it's £679 - an increase of 1070%! And we wonder why restaurants and bars are failing - and why supermarket prices will go up. Yet it's been swept under the carpet and nobody seems to have realised.

📣 Upcoming financial changes every business owner needs to know 👇 From the 1st April: 💥 VAT registration threshold increases from £85,000 to £90,000. 💥 National Living Wage increases to £11.44 an hour, along with an increase in all other National Minimum Wage rates. 💥 The extension of the 2024/25 Retail, Hospitality and Leisure Business Rates Relief scheme, until 31st March 2025, begins. Eligible, occupied retail, hospitality and leisure properties will be entitled to 75% relief on business rates, up to a cash cap limit of £110,000 per business. PLUS in the new tax year, which starts on 6th April, the following changes come into effect: 💥 Reduction in National Insurance for the self-employed – The liability for the self-employed to pay Class 2 NICs has been removed and, the main rate of Class 4 NICs has been cut from 9% to 6%. 💥 Dividend allowance halved again – Individuals who receive dividend income are now only entitled to £500 tax free. 💥 Capital Gains Tax annual exempt amount reduced – The annual exempt amount is now permanently fixed at £3,000 for individuals. #SMEUK #BusinessNews #SmallBusinessNews