The latest tax rules introduced by the government mean that switching to an electric company car is no longer just about reducing the climate impact, but provides a significant tax benefits for both employer and employee. From April 2021, fully electric company cars attract a Benefit in Kind rate of just 1%, rising to 2% from April 2022. This means, a Tesla Model 3 Standard Range Plus with a purchase price of £80,000 would have a benefit rate of just 1% in 2021-22, equating to an annual taxable benefit of just £800.

Between 1 April 2021 and 31 March 2023, companies can claim a super-deduction in the form of first year relief of 130% on qualifying plant and machinery additions. This means a company spending £100,000 on qualifying assets would have £130,000 deducted against its taxable profits, resulting in a tax saving of £24,700 per £100,000 of expenditure.

£102,000 – that’s the average amount we’ve secured in R&D tax relief for our clients. R&D tax relief is one of the best tax reliefs available to both loss-making and profit-making companies.

Changes in IR35 rules from 2021 will mean employees, but through their own Personal Service Company (PSC), pay the same Income Tax and National Insurance contributions as other employees. From April 2021, businesses will have the responsibility of deciding whether the employment taxes and National Insurance contributions should be deducted.

HMRC have introduced a restriction for the amount of R&D tax credit received by SMEs in a year. Effective from 1 April 2021, the cap is set at £20,000 plus three times the company’s total PAYE and NIC liability for SMEs claiming R&D tax credits.

The Chancellor has attempted to strike a balance between continuing to prop up the businesses worst affected by COVID-19, while setting out a roadmap to wean the UK economy off this emergency support.

The Chancellor, Rishi Sunak, delivered the 2021 Budget on 3 March 2021. Our specialist Personal and Corporate Tax Teams have summarised the key announcements below, with a full report to be published on Thursday 4th March 2021.

HMRC have began issuing “nudge letters” to UK residents with a financial connection to Italy and potential tax liabilities on overseas income or gains, prompting them to make a disclosure under the Worldwide Disclosure Facility (WDF).

London-based accountancy firm Jeffreys Henry has attracted significant growth investment from Tenzing, an award-winning private equity fund. Jeffreys Henry is Tenzing’s first investment in regulated professional services, and the 2nd investment in their flagship £400m Fund II.

Jeffreys Henry LLP, the award-winning provider of audit, tax and advisory services to LSE, AIM and Aquis listed companies, has advised Vector Capital Plc on its […]