As we transition from Summer to Autumn, it’s an exciting time of year – back to school! Whether you’ve got children starting school for the first time, moving up to senior school, or looking forward to meeting up again with their school friends, this season is all about new beginnings and opportunities.
Can I Pay My Corporation Tax Bill Early?
Although limited companies have 9 months and one day after the close of their accounting period to settle their Corporation Tax bill, there are some benefits to paying this early, namely to receive credit interest – HMRC’s current rate of interest for early payments of corporation tax is 4.75%.
HMRC will pay this interest from whenever you pay your bill, up to the standard payment deadline (9 months and one day after the end of your accounting period), although they will only start paying credit interest from six months and 13 days after the start of the accounting period it relates to.
If you do plan to pay your Corporation Tax bill ahead of time, you should take into consideration the impact on your cash flow – once you allot the cash to paying your tax bill, it will of course be no longer available to use in other areas of your business.
For our corporate clients, if you’re unsure whether to pay your Corporation Tax bill early, please do contact us and we will be happy to advise you.
End to Furnished Holiday Letting (FHL) Tax Breaks Confirmed
In March 2024 the government announced that the long-standing tax breaks for landlords who let furnished holiday accommodation would come to an end on 5 April 2025. However, it was clear that because of the nature of the tax breaks a clean break would not be possible and therefore transitional rules were required. These have now been published by HMRC.
Key Changes
The main changes that will affect landlords of FHLS are:
- Tax relief for loan interest and other finance costs relating to their FHLs will follow the general rules for rental properties and will be capped at the basic income tax rate (20%)
- Expenditure on equipment, fixtures and fittings used in the FHL business will cease to qualify for capital allowances (CAs)
- Business Assess Disposal Relief (BADR) and other Capital Gains Tax breaks will end
CAs Transitional Rules – FHL Landlords who incurred or will incur expenditure on or before 5 April 2025 on equipment and other assets that qualify for CAs, will be entitled to CAs beyond 5 April 2025. There will be no clawback of CAs or deemed sale of the assets as was feared.
CGT Transitional Rules – For BADR, where the FHL conditions are met on or before 5 April 2025, relief will continue to apply to a sale or transfer of the FHL property that occurs within three years following cessation of the letting business, whenever that occurs.
Latest Advisory Fue Rates for Company Car Drivers
HMRC updates these rates on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, free from income tax.
From 1 September 2024 the rates per mile are:
| Engine size | Petrol | LPG |
| 1,400cc or less | 13p | 11p |
| 1,401cc to 2,000cc | 15p | 13p |
| Over 2,000cc | 24p | 21p |
| Engine size | Diesel |
| 1,600cc or less | 12p |
| 1,601cc to 2,000cc | 14p |
| Over 2,000cc | 18p |
The rate for fully electric vehicles is also reduced to 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.
Although these rates apply from 1 September 2024, you can still use the previous rates for one month from that date. If you have business mileage for September, you will be slightly better off by using the rates for the current quarter.
Guide for Employers Supporting Disabled Employees with Hybrid Working
Small and medium-sized employers have been offered guidance by the UK’s Equalities Watchdog, so that they can support disabled employees with reasonable adjustments and help them thrive when hybrid working.
Available from the Equality and Human Rights Commission (EHRC), this guide provides practical tips, questions and case studies covering recruitment and employment. It also explains how the Equality Act 2010 places a duty on employers to make reasonable adjustments and how to implement the adjustments.
How We Can Help
At Clear Vision, we’re always eager to guide and assist our clients – how ever you need us to support you through your journey as a business owner, we’re here for you! To stay up to date with business legislation and guidance, please get in touch.
This month’s Clear Vision positive thought:
‘Trust yourself, you know more than you think.’
To discuss any of these matters, or the accountancy and tax support you need, please call our friendly team on 01249 712074 or email theteam@cvag.co.uk