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Tax return season is upon us again and for some of you, you may have to complete a tax return. We are completely aware that this may bring the panic of the looming 31st January deadline – don’t worry RBCA are here to help!

The fear of finding bank statements, looking out for receipts, and making sure all the book-keeping is up to date is all part of the process to calculate that dreaded tax bill at the end of the month.

Last year HMRC had stated that on 3rd January 2023,  5.7 million individuals still needed to file their tax returns. Were you one of those people?

At RBCA, We are here to make sure you are ahead of the crowd. Let’s get those returns done & dusted long before the dreaded January arrives.

We have created our tax return survival guide to ensure you make it through tax season.

Step 1: Deciding whether you need to complete a self-assessment return.

Not everyone in the UK needs to complete a self-assessment return. Individuals who are solely paid via PAYE do not need to complete a return as they are already taxed at source on this income. An exception to this rule is those who are on a salary of greater than £100,000.

Individuals who have generated taxable income and have not paid any tax on this will need to complete a self-assessment return such as:

•              You are self-employed – generating over £1,000;

•              You are a partner in a partnership business;

•              You are a minister of religion – any faith or denomination;

•              You are a trustee or executor of an estate;

•              You have savings or investment income over £10,000;

•              You receive property income;

•              You receive interest that is not taxed before it is paid to you;

•              You receive an annual income of £100,000 or more before tax;

•              You or your partner receive child benefit and your adjusted net income is over £50,000; or

•              You have received foreign income which UK tax is due;

This is not an exhausted list. Please get in touch with us if you are unsure as to whether you need to complete a return!

Step 2: Registering for Self-Assessment

If you have never completed a self-assessment tax return, you will need to register online to receive your 10-digit Unique Taxpayer reference number (“UTR”) within 10 working days. This can be done online via https://www.gov.uk/register-for-self-assessment or we can do it for you!

Step 3: Gather your information

To complete your self-assessment return you will need the following information if applicable to your situation:

•              Employment – P60 or P45;

•              Pension – P60;

•              Dividend vouchers;

•              Self-employment – details of untaxed income and record of expenses occurred e.g. bank statements, receipts or access to accounting software;

•              Details of any untaxed interest received;

•              Details of any charitable donations;

•              Details of any pension contributions;

•              Details of child benefit received for yourself or partner if adjusted net income is greater than £50,000;

•              Details of any other untaxed income (including property income, foreign income etc.)

Step 4: Completing your return

The self-assessment return is split into two separate sections. The main section records income (taxed and untaxed) from employment, pensions, dividends, or interest etc. It also records any pension or charity contributions made during the tax year and any taxable benefits received.

The second section of the self-assessment return records additional income from self-employment, property income or declaring capital gains.

Step 5: Paying your self-assessment bill

The payment deadline for paying your self-assessment bill is the same as the submission deadline (31st January 2024).

You can pay online via Pay your Self-Assessment tax bill: Overview – GOV.UK (www.gov.uk) and to do so you will need your UTR number followed by the letter “K”.

For same or next day payment, you can also pay by:

•              Online or telephone banking (Faster Payments)

•              CHAPS

•              By debit or corporate credit card online

•              At your bank or building society

•              Through your online bank account

At RBCA, we are here to help through every step of the self-assessment process and if you need to complete a tax return, please don’t stress, pick up the phone and call 028 9532 0155 to have a conversation with one of our advisors – January is nearly here!

Follow us on Linkedin for all the latest content, visit: RBCA | Belfast | LinkedIn

Michelle Gildernew, Sinn Fein MP for Fermanagh and South Tyrone, has highlighted the importance of expert advice for SMEs and owner-managed businesses in the region. She attended an event at Enniskillen Castle, hosted by Fermanagh’s Ross Boyd, the owner of chartered accountancy firm RBCA.

Gildernew said, “Despite the current climate, it is encouraging to see local entrepreneurs establish and grow businesses and continue to create employment opportunities across the Fermanagh and South Tyrone region. SMEs and owner-managed businesses are the backbone of the local economy in the North and the positive impact they have on communities cannot be underestimated.

“I was delighted to attend Enniskillen Castle and meet with the RBCA team – a refreshing group of talented individuals who clearly care passionately about the economic future of the North. This type of proactivity and commitment is needed. Job creation is critical to a healthy economy and businesses who offer sound business advice, despite the challenges of Brexit and a growing myriad of complex economic conditions in recent years, should be applauded for supporting growth.”

Gildernew met with a group of young professionals from the RBCA team and heard about their ongoing counsel and practical support to local businesses. Ross, who lived in Enniskillen until he moved away for University, said he was delighted to bring his team to his hometown as part of the company’s talent development programme.

He said, “Each year, we invest in a range of team building and skills development courses in stunning venues around Northern Ireland. This year is the 10th year of the programme so coming back home was important to me – not only to reflect on a decade of supporting the next generation of business advisors, but to look ahead to new ideas for growth in 2024 and share our thoughts on supporting a positive growing economy throughout the island of Ireland.”

RBCA recently announced ambitious expansion plans to support various departments across the business as demand accelerates.

Ross continued, “Having seen a surge in demand last year, we have taken all the necessary steps to ensure that we remain geared to offer the best possible support and guidance to owner managed businesses. Our planned expansion is designed to support our clients’ requirements and ensure that we can strategically help them navigate the ongoing challenges of running a business in this economic climate.”

RBCA was established in 2010 and remains a completely independent, fully regulated chartered accountancy practice. The organisation offers proactive advice and consultancy to support privately owned businesses and the public sector across the UK and Ireland.

Follow us on Linkedin for all the latest content, visit: RBCA | Belfast | LinkedIn

Innovation has generally been recognised as essential for value creation, both for individual companies and for the UK economy as a whole. The development of new ideas, processes, and technologies and their flow across different sectors is a significant driver of economic growth and productivity. Recently, innovation has also been identified as crucial to the transition of the economy away from fossil fuels and carbon-intensive business activities. As accountants in Belfast, we support clients with tax advisory which include R&D tax credits.

There are many factors that affect whether and how businesses innovate, for example the availability of skills and capital and government policy measures such as tax incentives.

However, none are more important that the company’s own culture, capabilities and internal systems – all of which are aspects of its governance. Unless companies are governed in a way that is conducive to innovation, they are unlikely to be in a position to take advantage of new opportunities.

As accountants in Belfast, our most innovative clients share some key characteristics:

• They invest in activities with uncertain outcomes for which the likely commercial return is difficult to quantify and the risk of failure is higher than normal;

• They benefit from the availability of company-specific skills, which may be highly specialised;

• They have a culture which encourages flexibility, experimentation, and a high level of individual decision making; and

• They require a longer-term time investment horizon than many other kinds of business activity.

Important points we note as accountants in Belfast which worth considering as a business owner:

– The R&D expenditure credit has increased from 13% to 20%

– Cloud computing and employee time related to it e.g., computing, analysing, and processing of data are eligible costs for R&D.

Research and Development (R & D) is the process of taking an idea and transforming it into a fully-fledged product or procedure. R & D tax credits are a government incentive designed to encourage innovation across multiple industries. This is an opportunity for you to reduce your corporation tax bill or receive a refund from HMRC based upon the number of working hours and relevant costs your business dedicates to Research & Development. Under the scheme, SME’s can claim back up to 33% of the costs associated with R & D.

If you are looking for long term finance to support innovation then you will need to ensure your management accounts are up to date, you make available current detailed lists of debtors and creditors, and you might need up to date projections before an expert will consider your application.

There are several important changes that have occurred to the R&D process from 1st April 2023 which we can advise on. If you would like to know more about R&D or if you would be eligible to make a claim, feel free to contact us

Follow us on Linkedin for all the latest content, visit: RBCA | Belfast | LinkedIn

Thus far, 2023 has allowed Belfast accountants to showcase their resilience, and how indispensable a role they play in business. We’ve always known that accountancy is an industry of perpetual change, but in recent years, and even months, its evolution has come at rapid pace. Unpredictable economic shifts, the digital transformation and ever-changing regulations have compounded, with accountants ultimately having to adapt to remain relevant.

But what do the Belfast accountants of the future look like? First off, they see far beyond the number crunching and financial recording in favour of a broader set of responsibilities such as analysing forecasts, identifying emerging trends, networking – ultimately more than a Belfast accountant, but a strategic advisor.

Understanding the skillset of the contemporary accountant is important, but more important is understanding how we as business owners continue to nurture and support our industry talent to grow in tandem with the sector’s demands. How do we support talent to embrace new paradigms to and remain a central figure in their clients’ businesses?

It may seem a question with a simple answer, but many firms are yet to consider their next steps in the war against talent. According to a recent Intuit QuickBooks survey of accountants, 92 per cent have experienced hiring challenges in the past year, with numbers reaching concerningly low levels in 2022.

Talent and growth are entirely correlated

so Belfast accountancy firms should carefully and proactively monitor their resource to identify and address any emerging skills gaps. To put in bluntly, investing in human capital is a non-negotiable when it comes to maintaining client standards, and remaining in a comfortable position to accept new growth opportunities.

I believe it’s our responsibility to advocate for employees, and part of this is ensuring that career development strategies are in place to retain and attract the best. And my response focuses on talent at all levels.

Now in its fifth year, we developed and introduced our RBCA Academy Programme in 2019, to ensure that we commit to talent entering the workforce. Just these past few months we’ve welcomed six bright individuals at the very start of their careers to our fold. It makes me proud to be in the position to offer local talent a setting where I know they will thrive, not only enhancing their technical skills and having the opportunity to achieve Chartered Accountancy status, but also investing in their interpersonal development and growing to become a trusted business partners to their clients.

As Belfast Accountants, we recently invested in a new Belfast city centre office that provides the physical environment needed for productivity and learning

Furthermore, our team is exposed to and understands the importance of digital tools. In 2022, we redesigned and invested in new cloud technology, successfully tackling our tech stack. Whilst there is much debate on whether investing in software is worth the cost implication to clients, our continued growth would signal that improving efficiency and performance is key to continued success. And whilst some ill-advised pundits would argue that accountancy’s future is limited in this increasingly digital world, we argue that new accounting technologies are simply complementary to our work, and will never replace it.

Why?

People will always buy into people. Relationships are, if you will, the secret weapon of the modern-day accountant – the point of difference that gives that crucial competitive edge. Across the firm the team is encouraged to get out of their comfort zones and focus on presentation skills, and building their personal networks. And it’s a strategy that proves to be working.

Our workforce headcount has grown by 25 per cent in recent months, due to rapidly increasing client demands for our services. So, my leadership focus for the future will continue to prioritise talent. As leaders, we should all be willing to develop our employer proposition and support the continued repositioning of accountancy as the rewarding, exciting career that it is, to futureproof the talent pool for generations to come.

Keep up to date with our latest articles on the news section of our website: https://www.rossboyd.co.uk/category/news/

Follow us on Linkedin for all the latest content: RBCA | Belfast | LinkedIn

To our Valued Clients, Customers & Followers
 
We are thrilled to announce that we have moved to a new, modern office space that will allow us to better serve your needs. Our new office at Linenhall Exchange reflects our commitment to growth, innovation, and providing an exceptional client experience.
 
We know that most of you are already aware of our new office opening event, which will take place on Thursday 23 February at 6pm. We hope that you will be able to attend and look forward to sharing this special moment with you.
 
As we continue to grow and evolve, we are committed to remaining true to our core values while updating our brand to better reflect who we are and where we are headed. Therefore, we are proud to also unveil our rebranding as Ross Boyd transforms to RBCA Ltd.
 
Our updated visual identity and logo reflect our growth, unique story so far and passion for providing exceptional client service.  Whilst our name and appearance may be different, our dedication to providing first class advice and support to our clients will remain the same.
 
As we continue to grow and push boundaries, we are committed to being at the forefront of innovation in our sector. Our rebranding initiative is part of our wider commitment to enhancing the client experience. It also reflects our passion for innovation, creativity, and the continual evolution of our modern accountancy practice.
 
Our rebranding initiative is a significant step in our journey. We look forward to what the future holds for us, as Belfast accountants and for you, our valued clients.
 
Thank you for your continued trust in us.
 
Sincerely,
RBCA Ltd

Tax return season has finally arrived and for some of you, you may have to complete a tax return in Belfast. We are completely aware that this may bring the panic of the looming 31^st January deadline – don’t worry RBCA are here to help!

The fear of finding bank statements, looking out for receipts, and making sure all the book-keeping is up to date is all part of the process to calculate that dreaded tax bill at the end of the month.

HMRC have stated that as of 3^rd January 2023 almost 5.7 million individuals are still to file their tax returns. Are you one of those people?

At RB Chartered Accountants, we have created our January survival guide to ensure you make it through to February!

Step 1: Deciding whether you need to complete a self-assessment return.

Not everyone in the UK needs to complete and a self-assessment return. Individuals who are solely paid via PAYE do not need to complete a return as they are already taxed at source on this income. An exception to this rule is those who are on a salary of greater than £100,000.

Individuals who have generated taxable income and have not paid any tax on this will need to complete a self-assessment return such as:

• You are self-employed – generating over £1,000;
• You are a partner in a partnership business;
• You are a minister of religion – any faith or denomination;
• You are a trustee or executor of an estate;
• Savings or investment income over £10,000;
• You receive property income;
• You receive interest that is not taxed before it is paid to you;
• You receive an annual income of £100.000 or more before tax;
• You or your partner receive child benefit and your adjusted net income is over £50,000; or
• You have received foreign income which UK tax is due;

This is not an exhausted list. Please get in touch with us as experts, if you are unsure as to whether you need to complete a return!

Step 2: Registering for Self-Assessment

If you have never completed a self-assessment tax return in Belfast, you will need to register online to receive your 10-digit Unique Taxpayer reference number (“UTR”) within 10 working days. This can be done online via https://www.gov.uk/register-for-self-assessment or we can do it for you!

Step 3: Gather your information

To complete your self-assessment return you will need the following information if applicable to your situation:

• Employment – P60 or P45;
• Pension – P60;
• Dividend vouchers;
• Self-employment – details of untaxed income and record of expenses occurred e.g. bank statements, receipts or access to accounting software;
• Details of any untaxed interest received;
• Details of any charitable donations;
• Details of any pension contributions;
• Details of child benefit received for yourself or partner if adjusted net income is greater than £50,000; and
• Details of any other untaxed income (including property income, foreign income etc.)

Step 4: Completing your return

The self-assessment return is split into two separate sections. The main section records income (taxed and untaxed) from employment, pensions, dividends, or interest etc. It also records any pension or charity contributions made during the tax year and any taxable benefits received.

The second section of the self-assessment return records additional income from self-employment, property income or declaring capital gains.

Step 5: Paying your self-assessment bill

The payment deadline for paying your self-assessment bill is the same as the submission deadline (31^st January 2023).

You can pay online via Pay your Self Assessment tax bill: Overview – GOV.UK (www.gov.uk) and to do so you will need your UTR number followed by the letter “K”.

For same or next day payment, you can also pay by:

• Online or telephone banking (Faster Payments)
• CHAPS
• By debit or corporate credit card online
• At your bank or building society
• Through your online bank account

At RBCA, we are here to help through every step of the self-assessment process and if you need to complete a tax return in Belfast, please don’t stress, pick up the phone and call 028 9532 0155 to have a conversation with one of our advisors – February is nearly here!

After a challenging 2022, many owner-managed businesses in Northern Ireland will be entering January determined to reduce their business costs to prepare for the turbulence that 2023 may bring. It is important that Belfast business seek 2023 business advice early. Belfast-based accountancy expert, Ross Boyd, founder of RB Chartered Accountants, says with good planning, business owners will be better positioned to navigate expected challenges.

Ross says: “If we have learned anything from last year, it is that business owners must remain agile in challenging trading conditions. Plotting the right journey is business critical. Getting the right advice means they may be able to absorb the bumps in the road that lie ahead.

“2022 was, well – unprecedented.  The chaos that ensued after the mini-budget at Westminster, belied a fragility that shocked not just the markets – but the entire business community. With inflation rates spiking at 11.1% late last year, and the Bank of England reacting by raising interest rates to 3.5%, we all got an insight into just how precarious a position the short-lived Truss Government left the economy.   

Belfast Accountant Ross Boyd Believes

“That this will be rectified – but it will take time.  They say patience is a virtue, however for many businesses in Northern Ireland it may also prove to be a luxury that they simply cannot afford.  

“It is important that businesses plan strategically for the next 12 months, so that they can accommodate the impact that 30-year high inflation figures bring. Whilst inflation may plateau and then slowly drop in late 2023, the impact of this must be absorbed now.  

“Many businesses will tighten spend to cope with an expanding cost base and shore up capital as a buffer against economic uncertainty. This will result in expansion plans being put on ice and puts pressure on planned investment opportunities.  The business sector in Northern Ireland is renowned for being resilient – a huge part of this of this is about being pragmatic and many owner-managed businesses may decide to play it safe and reforecast business. growth.

“Businesses that are already under pressure may seek insolvency before 2023 draws to a close and for some, it will be the right decision for them. It’s a tough decision that no-one ever expects to have to undertake.   However, it is also true that the sooner the decision is made the better the outcome is for everyone involved.  

“For profitable businesses, one of the biggest costs to factor into their financial planning is the increase to corporation tax. The new rate will be effective from 1 April 2023, increasing from 19% to the top rate of 25% for companies with profits of £250,000 and over.  Whilst many owner-managed businesses with profits up to £50,000 will continue to pay corporation tax at 19%, those with profits between these two figures will be subject to a tapered rate.  

“Simply put this will encourage businesses to reduce their exposure to corporation tax.  Many will consider gaming the tax bands – for example by advancing the purchase of equipment or making enhanced pension contributions. Getting the right advice at the right time can make a big difference and for many there may be multiple strategies at play, all of which need to be forensically considered. 

What Does The 2023 Hold For Belfast Businesses ?

“However, it isn’t all doom and gloom, challenging times are always followed by a return to more prosperous economic conditions.  The businesses that navigate 2023 will be creating a fantastic opportunity for themselves when favourable economic conditions return.  Their agility and ability to plot their own course will literally pay dividends.  

“Business, like life, is a journey and sometimes you just have to do the hard yards.”

For all the latest news similar to 2023 business advice, please click here to view our historical articles – https://www.rossboyd.co.uk/category/news/

Tax Increases and Public Spending Cuts

The new Chancellor Jeremy Hunt had warned the public and the financial markets that his Autumn Statement would include “eye-watering” cuts in public spending and tax rises for those with the ‘broadest shoulders’. Unlike the ill-fated Fiscal Event of 23 September, the Government “rolled the pitch” this time with several leaks prior to the event. Mr Hunt wants to avoid the austerity that followed the 2008 financial crash and is focused on measures that will keep the period of recession as short as possible.

Many pensioners and those on means-tested benefits will be relieved that their 2023/24 payments will be uprated in line with the 10.1% inflation in the year to September 2022. There will also be further support for those struggling with energy bills. But this continued support needs to be paid for and the tax increases and spending cuts will not be popular.

Freezing Income Tax Bands

It had already been announced that the income tax personal allowance (£12,570) and higher (40%) rate threshold (£50,270*) would be frozen until 5 April 2026, instead of increasing each year in line with inflation.

The Chancellor has now announced that these freezes will continue until 5 April 2028.

As earnings increase, this will result in more higher rate taxpayers and is often referred to as ‘fiscal drag’ because it will raise more tax without actually increasing income tax rates. It’s a good time to seek tax advice in Belfast.

45% Income Tax and NIC Bands Frozen

The income level at which point the ‘additional’ 45% rate of income tax starts to apply will be reduced from £150,000 to £125,140* from 6 April 2023.

The new £125,140 threshold ties in with the £12,570 personal allowance being gradually withdrawn for those with income in excess of £100,000. For these individuals, once their income exceeds £125,140, they will no longer be entitled to a personal allowance and, from April 2023, will move straight into 45% income tax.

*It should be noted that, for Scottish taxpayers, income tax rates and thresholds are, for certain income types, separately set by the Scottish government.

Employers will be relieved that there are no more changes to NIC rates and bandings or therefore consequential payroll software changes!

Like the main income tax bandings, NIC thresholds are now also frozen until 5 April 2028. This means that employers’ NIC will continue to apply at 13.8% to earnings in excess of £9,100 a year (£175 per week) and employees and the self-employed will continue to pay 12% and 9% respectively on earnings/profits between £12,570 and £50,270 and 2% thereafter.

Despite rumours to the contrary, the 1.25 percentage point increase to NIC rates that has just been removed from 6 November 2022, will not be making a return from 6 April 2023.

In good news, we did not see measures to further restrict tax relief for pension contributions.

Please do talk to us about how your pension contribution strategy could help to lessen the impact of the above income tax changes or in relation to tax advice in Belfast.

Dividend Income Reduced 0% Band

For all individuals, the first £2,000 of dividend income is taxed at 0%.

The government have now decided that this ‘dividend allowance’ of £2,000 will be reduced to £1,000 in the 2023/24 tax year and then again to just £500 in the 2024/25 tax year.

It should be remembered that the income tax rates applied to dividend income outside of the allowance have only recently been increased to 8.75%, 33.75% and 39.35% (for dividend income falling into basic rate, higher rate and additional rate bands respectively).

Combined, these measures will mean that those reliant on dividend income will pay more tax.

If you are a director/shareholder, please contact us to discuss the best strategy for extracting profits from your company from 6 April 2023.

Capital Gains Tax Annual Exemption Cut

Many were predicting that the rates of Capital Gains Tax (CGT) paid by individuals would increase, possibly to align with the rates of income tax.

Instead, the Chancellor has announced that the current £12,300 annual tax-free CGT exemption (or allowance) will be reduced to just £6,000 in 2023/24 and only £3,000 in 2024/25.

This change will mean that those disposing of investments such as shares, second homes and buy-to-let properties will pay more tax.

If you are planning any capital disposals, please contact us to discuss the best strategy for timing of sale.

Research & Development Rebalancing

The Chancellor has again expressed concerns about the alleged abuse of Research & Development (R&D) tax reliefs.

Alongside plans to merge two existing schemes in future, he announced that, from 1 April 2023:

• The Research and Development Expenditure Credit (RDEC) available to non-SME companies would be increased from 13% to 20%.
• For SME companies, the additional R&D tax relief deduction will be reduced from 130% to 86%.
• For loss-making SME companies, the payable credit will be reduced from 14.5% to 10%.

Tax Deadlines & Main Events

Date	What’s Due
1/12/22	Corporation tax for year to 28/02/2022 unless quarterly instalments apply.
19/12/22	PAYE & NIC deductions, and CIS return and tax, for month to 5/12/22 (due 22/12 if you pay electronically).
30/12/22	Deadline for filing 2021/22 tax return online in order to request that HMRC collect outstanding tax via the 2022/23 PAYE code.
1/1/23	Corporation tax for year to 31/03/2022 unless quarterly instalments apply.
19/1/23	PAYE & NIC deductions, and CIS return and tax, for month to 5/1/23 (due 22/1 if you pay electronically).
31/1/23	Deadline for filing 2021/22 self-assessment tax return online and paying your outstanding tax for 2021/22 and first payment on account of 2022/23 tax.

And finally, in all matters, we are here to help you especially when it comes to tax advice in Belfast. Please do get in touch to discuss any of the items above, at RB Chartered Accountants in Belfast, we are happy to help. The content published in this article was accurate as of 18.11.22. For more information and our latest news, please visit http://rossboyd.co.uk/category/news/