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What is the green tax break?
The green tax break. Why going electric in your company? Car is a smart move. So are you tired of high tax bills on your company car? It’s time to go electric. In today’s society, the tax system is used not only to raise revenue, but also to encourage certain behaviors and discourage others. . And when it comes to company cars, the government is just giving a green light to those who choose to go electric.
Drivers of electric and low emission cars attacks less heavily compared to those with high emission models. Employers can even provide workplace charging facilities tax free and meet the cost of electricity for employees private journeys. Without triggering a fuel benefit charge, so this means significant tax savings for both employees and employers.
For instance, if you have a 30,000 pound car with emissions of at least 160 grams per kilometer, You should be paying an annual tax bill of 4440, but going electric could save you up to 4,200 in tax each year. And it’s not just the employees who benefit. Employers will also see a lower class one, a national insurance contribution charge.
If the value of the tax will benefit is lower. And it’s not just the tax savings. There’s a fuel benefit too. So normally if an employee provides an employee with fuel for private motor, It would result in a taxable benefit, but there’s no fuel benefit charge when it comes to electricity for electric cars.
This is because HMRC does not consider electricity a fuel, and there are also Class one A N I C savings for the employer. So it is win-win situation. So by getting electric, you’re not only saving taxes, but you also contribute to a greener. What do you think? Please, like, follow and comment does. Just stay informed with my latest content.
And also, please get in touch with me via my website in my profile, redboxfinancial.com. If you’ve got any questions about anything. So did you already know about all this? Do you think it’s a good idea? What, what are your thoughts on switching to electric cars in your company? So just let us know in the comments.
Office of tax simplification
So, have you heard of the fantastically named Office of Tax Simplification? It’s released this review on residential property income in the uk and I’m here to break it down for you. So according to HMRC data, nearly 25% of all tax returns had a portion of property income. The OTs conducted a review and have, have released their recommendations to the government, including revamping the furnished holiday lets.
Changing the allowable expenses for landlords and adjusting the reporting of income for joint. Putting a halt on making tax digital for landlords and reforming the non-resident landlord scheme. So one thing to note is the consistent use of the word business in relation to property, including a suggestion of bright Line business test for residential properties.
So the government may be slow to act on the OT S’S recommendations, but the report still influences policy discussions. With changes to tax coming up. So now’s the time to review your affairs and take advantage of all tax reliefs before it’s too late. Please like, follow and comment to stay informed with my latest tax tips.
Also, please get in touch with me via my website redboxfinancial.com if you need help with this or any questions. So, have you heard of the Office of Tax Simplification? Do you think is a good. , what do you think is better? That tax law just stays really complicated, so Norm really understands it. What do you think?
Let us know the comments.
What is the difference between ordinary, preference and deferred shares?
So running a limited company is all about making smart decisions. When it comes to shares. There’s more than one type to choose from. So there’s ordinary shares which everyone knows about, and that gives you a say in the company’s decisions and share the profits and so on. Also, preference shares, uh, and then maybe that could give you a guaranteed dividend, but no voting rights.
Finally, there’s deferred shares, these could give you a share the profits at a later date. So by creating different categories of shares, you can attract a wider range of investors and raise more capital and just do it all in a more flexible way. And best of all, it gives you more control over how your company’s run and also how profits are distributed.
So please like, comment, share to get more tips, and go to my website for more. Or if you want to ask me a question, so do you think it’s a good idea to have different classes of shares, or do you think it’s better just having them all the same as ordinary shares? What do you think? That’s all for now.
“Diabolical HMRC service hurts economy – Accountants” ICAEW are not happy!
So, I don’t know about you, but I really hate it when people moan. They just moan all the time and nothing ever gets resolved. They just, but sometimes it is really important to point out things that are going wrong. And today I was just looking at the BBC News website and I noticed there’s a news item on the business section.
Diabolical HMRC service hurts. Economy, accountants. So diabolical is a strong word. And also the fact that it’s apparently hurting the economy, which you know, is not. So since the whole point of the HMRC is to try and get money to help fund everything, if it’s hurting the economy, that’s not a good start, is it?
Because then it is not gonna get as much. And they’re gonna have to tax everyone more. So I don’t wanna be one of the mos, but I just thought I’d scroll down cuz you know, I’m quite interested in the HMRC and also interested in my accountants. And I actually find it’s not just accountants in general.
It is the Institute of Chartered Accountants in England and Wales, which is my body, which is what I pay fees to every year. That regulates me. So when they say so, , they know what they’re talking about. And I take it seriously. And they said that securing basic tax details takes months and is causing delays for companies.
And then one accountant who is nameless, it’s not me, but No, it is. But it says one accountant called the service diabolical and the institute wants an emergency task force drafted in. Now, I love the I C A E W. But I’ve never ever seen them get so worked up about something. So it indicates to me there is something seriously wrong, ongoing on.
So, um, in emergency here, 70,000 calls a day, blah, blah, blah. That’s their excuse. That’s saying, well, that’s why they’re so busy. They did collect 731 billion pounds in tax last year. And then they’re saying about they’ve cut the numbers. Quite drastically. Digitalization, blah, blah blah. So basically load of excuses and covid pandemic.
Yeah, of course. I mean, obviously everyone’s got problems, but even so, if these delays are hurting the economy, hopefully someone’s gonna do something bad and sort it out. What do you think about it? Have you noticed any delays with HMRC or do you think they ought to pull their finger out and get cracking, and what do you.
Are you familiar with the HMRC PAYE Tax Codes? Here is what you need to know!
So a lot of people don’t really understand what the HMRC PAYE codes mean with weird letters and numbers. So here I’m gonna just discuss the components of them. Every person in the UK who receives income through employment or PAYE is taxed based on their tax code initially, which is assigned by HMRC to their employer.
So everyone begins with a personal 12,517 the time of recording this video, which is recording the tax code 1257L, that means you get 1048 tax-free per month, or 242 pounds per week. The letter L in your tax code indicates that you are entitled to the standard personal allowance, so other letters that may appear paid your tax code include m.
So that indicates you’ve received a marriage allowance from your partner and that increases your personal allowance. T means that your tax code includes additional calculations, for example benefits, deductions, or expenses, which may reduce your personal allowance. If your tax code is zero t, that means that your personal allowance has been fully used or your employer does not have the necessary information to issue a tax code.
BR stands for basic rate. That means that all of your income from that source will be taxed at the basic rate without the use of allowance. D zero means that all of your income from that job will be taxed at 40% without any allowances, and D one means that all of your income from that source will be taxed at the additional rate of 45% without any allowances.
Finally, NT ensures that none of that income is subject to tax. Particularly if you are abroad. So please like, follow and comment and get in touch with me via my website if you have any questions. So, which tax code do you have and do you think this is a good system? Did you understand it already?