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Fab5 Feature – June

Welcome to June’s edition of Fab5, the last one prior to the refresh we have planned… You’ll have heard us mention that lockdown derailed many of our plans but at last we have good news – we’re getting them back on track. In the coming days we’ll be announcing something exciting, a fresh identity to…
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Expenses and benefit returns for 2020/21

Expenses and benefits returns P11D and P11D(b) for 2020/21 need to be filed by 6 July 2021. Meeting this deadline is important as penalties may be charged for returns that are filed late. Form P11D A form P11D must be filed for every employee who has been provided with taxable benefits and/or expenses in the…
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Buy to let or furnished holiday letting?

When looking for an investment property, there are various decisions that need to be made. If the intention is to let the property, one consideration is whether to go down the buy-to-let route or whether to look at a holiday let. From a tax perspective, holiday lets that qualify as furnished holiday lettings have their…
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How does a directors’ loan account (DLA) work?

What is a DLA? A ‘Directors Loan Account’ (DLA) is an account in the company’s financial books that records all transactions between a director who is a participator (or another participator) and the company.Directors Loan Account’ (DLA) is an account in the company’s financial books that records all transactions between a director who is a…
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Fab5 Feature – May

Welcome! With further restrictions being lifted from Monday, it felt right for this month’s Fab5 feature to be focussed on recovery. This month’s feature includes an article from one of our retail clients, an introduction to our newest team member and details of the Recovery Loan Scheme and reduced VAT. Pop the kettle on and…
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Reduced rate of VAT

To help the hospitality and leisure industry recover from the impact of the first national lockdown, a reduced rate of VAT of 5% was introduced for a limited period from 15 July 2020. The reduced rate of VAT was originally to apply until 12 January 2021. However, in September last year, the Chancellor announced that…
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Client spotlight: Non Essential Retail

With clients in both the retail and hospitality sector, we have witnessed first-hand the impact the last year has had on said businesses. No two businesses have been affected in the same way and every business owner has their own story to tell. To the relief of many, non- essential retailers were permitted to reopen…
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Restart Grants and Recovery Loans

As lockdown restrictions are eased, businesses may need help to re-open and to recover from the impact of the pandemic. Depending on the nature of the business, they may be eligible for a Restart Grant or a Recovery Loan. Restart Grants The Restart Grant Scheme provides support to help businesses that were required to close…
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CIS compliance for property developers

The Construction Industry Scheme (CIS) is a scheme whereby contractors of building firms are required to deduct tax at source from payments made to sub-contractors working for them. Some sub-contractors are entitled to be paid without any tax deduction, others at 30% as per HMRC’s instructions but the majority have 20% tax withheld before payment.…
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Running a car on the company – What you need to know.

Running a car on the company – Benefit in kind, car allowance, company fuel cards Despite successive Governments changing the rules to increase the tax take, the provision of company cars remains one of the more popular benefits an employer can give to an employee. Our clients often speak to us about the various options…
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Take advantage of the enhanced carry back of losses

Many businesses have suffered losses as a result of the Covid-19 pandemic, and where a business has made a loss, various options are available to obtain relief for that loss. The challenge is to make the best use of the loss. To help loss-making businesses, legislation is to be introduced to increase temporarily the period…
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Super-deduction for capital expenditure

To encourage companies to invest, enhanced capital allowances are available for expenditure incurred within a limited two-year window. As an alternative to the annual investment allowance (AIA), companies will be able to benefit from either a super-deduction or a new first-year allowance, depending on whether the expenditure is on assets that would qualify for main…
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Mike’s Reflection Point

If someone had told me 5 years ago, as I prepared to launch Fabulous Group, that by its fifth anniversary, over 20% of its lifespan would have been spent in a period of national lockdown and restrictions I would have thought they were crazy! And yet as I sit here reflecting on those 5 years,…
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Personal and family companies – Optimal salary for 2021/22

As we look ahead to the new financial year, what’s the optimal salary for 2021/22? A popular profit extraction strategy for shareholders in personal and family companies is to pay a small salary and to extract further profits as dividends. The optimal salary will depend on whether the employment allowance is available to shelter any…
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National Living Wage and National Minimum Wage changes from April 2021

Under the minimum wage legislation, workers must be paid at least the statutory minimum wage for their age. There are two types of minimum wage – the National Living Wage (NLW) and the National Minimum Wage (NMW). From 1 April 2021, as well as the usual annual increases, the age threshold for the National Living…
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Gift Aid Declaration

Where a Gift Aid declaration is made, the recipient charity or community amateur sports club can claim back basic rate tax on the donation. The donation is treated as made net of basic rate tax, meaning that for every £1 donated, the charity can claim back 25p, or to put it another way, a donation…
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Fab5 Feature – March

We’ve had a busy couple of weeks here so have decided to keep this edition short –something to read when you’ve got a free 5 minutes! The beginning of the month was particularly busy with an earlier than usual Spring Budget Announcement and the addition of our newest team member, Sharon Bridges, Tax and Accounting…
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Office space with yellow seats and plant in forefront

Fabulous Team News

Sharon Bridges, Tax & Accounting Manager We welcomed Sharon to the team at the beginning of March and with her, she brings a wealth of tax and accounting knowledge. Sharon is responsible for the planning and delivery of clients’ statutory accounts and taxation requirements and is our go-to tax specialist and given her expertise, we…
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IR35 off-payroll working – a recap of what to do from 6 April 2021

Prior to 6 April 2021, workers who provide their services to a private sector organisation through an intermediary, such as a personal service company, need to consider whether the IR35 rules apply to them. This will be the case if the nature of the engagement is such that if they provided their services directly to…
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Business Interruption Insurance Tax Implications

Business interruption insurance – Are pay-outs taxable?

In January, the Supreme Court ruled in favour of small businesses whose insurance companies have refused to pay out for business interruption losses as a result of the pandemic. In the following article we look at the tax implications of these pay-outs. Business interruption insurance provides cover for losses as a result of events that…
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