August 1st, 2022Press Release
Allotts Business Update - July-August 2022
A few short months ago the focus was mainly on effects and implication of rising inflation. That volatility has been matched in July with not only record-breaking summer temperatures and another hike in inflation to 9.4%, but also a bruising Conservative Party leadership battle.
Whether or not the previous Chancellor, currently front runner among MPs, will win over the majority of Conservative members, will play out in early September. In the meantime, the issues facing individuals and businesses alike continue to challenge. In this edition of our newsletter, we look at several forthcoming changes affecting businesses and taxpayers, including significant changes to reporting requirements for small businesses. Our feature explores the overhaul underway at Companies House. Its responsibilities are broadening from simply record keeping to overseeing verification of information, with 58 changes to legislation affecting a number of different areas of company structures. Not least of these will be a requirement for smaller companies to file profit and loss accounts.
We also focus on businesses struggling through this period of high inflation and consider measures you could take to manage your position. Keeping on top of cash flow and planning for a range of possible scenarios should help weather the storm.
Our other stories include:
• Understanding the national insurance changes – The national insurance threshold shifted in July to match the income tax personal allowance, but it means self-employed workers will have to recalculate mid-year.
• Using salary sacrifice – We all think we know what salary sacrifice is – but it is possible to get it wrong, leaving employees ineligible for the NIC reduction due to reduced gross salary.
• Reclaiming overpaid inheritance tax – Discrepancies between the valuation of the deceased’s property at death and the actual sale price have led to thousands of families reclaiming overpaid inheritance tax. Claims can be made up to four years after the person’s death.
We will keep you informed of developments in our next newsletter in October, when the next rise in the energy price cap is due, and the country will have new Prime Minister. Meanwhile please do get in touch if we can continue to help or provide you with more information on any of the topics covered here.