Author Archives: Peggy Nightingale

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Happy New Year!

Today marks the start of the 2022/23 tax year and we are giving a summary of the changes which come in with effect from today or in some cases from 1st April.

  1. From 1 April 2022, all VAT registered businesses are required to follow the Making Tax Digital rule submitting VAT returns using HMRC approved software. This will cause difficulty for some businesses who have continued to maintain manual records and we will be contacting all our clients in this situation in the coming weeks.
  • The temporary 12.5% VAT rate for hospitality businesses has finished and from 1 April 2022, the standard rate of 20% applies once more.
  • From 1 April 2022 until 31 March 2027, VAT on installations of energy saving materials such as solar panels, insulation and heat pumps, will be 0%.
  • From today, National Insurance contributions for employers and employees alike increase by 1.25%.
  • From today, the Employment Allowance allowing small businesses to reduce their National Insurance liability increases from £4,000 to £5,000.
  • The National Minimum Wage and National Living Wage increase by 11.9% for apprentices and 6.6% for workers aged 23 or over.
  • A new Plastic Packaging Tax has come into being. A charge of £200 per tonne of plastic packaging manufactured or imported into the UK that does not contain at least 30% recycled plastic, is now applicable. Exemption is given to manufacturers or importers of less than 10 tonnes of plastic packaging per annum.

If you would like to speak with us about how any of these changes impact your own situation, then please do not hesitate to contact us.

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Year-end Tax Tips

We are now very close to the end of Income Tax year ending 5 April 2022 but there is still time to implement a few steps which may help reduce tax liabilities and protect wealth for some of our clients so therefore please have a look at the points below and if they are applicable to you, there is still just about time to act.

  • Annual pensions allowances

If you are a higher rate taxpayer, you can reduce your tax liability by making pension contributions up to a total of £40,000. If you have spare funds, then it is far more attractive to get tax relief at higher rates.

  • Individual Savings Account (ISA) allowances

Tax free saving products like ISAs have not been of enormous value over recent years because of the appalling low interest rates, but interest rates are now rising. Up to £20,000 per adult can be subscribed to an ISA before midnight on 5th April.

  • Saving for children

Making investments for children when they are young, (and the younger the better), is a powerful tool which can generate large funds by the time they reach adulthood. Up to £9,000 a year can be paid into a junior ISA and also pension contributions up to £2,880, which are topped up to £3,600 can be made for children, even if they have no tax liabilities.

  • Capital Gains Tax allowances

Not that many people are likely to have capital gains on a regular basis but each person can make capital gains tax free up to £12,300 per annum. It is far better to make a £12,300 gain today and then another £12,300 gain in early April rather than a £24,600 gain after 6 April, which will give rise to tax. Also, if you have capital gains liability this year, it might be worth disposing of other assets which would give rise to a loss which could offset the gain.

  • Other tax-friendly investments

Subscriptions can be made to venture capital trusts which offer 30% Income Tax relief on new share issues can be offset against Income Tax liability during the tax year of purchase. Therefore, if this relief is attractive, there is still time to use these vehicles.

  • Gifts to reduce Inheritance Tax

There are many urban myths surrounding Inheritance Tax liabilities but if you are likely to have an Inheritance Tax liability, and wish to make gifts to family, you can make gifts up to £3,000 each year and it will not be counted as part of your Estate.

It is appreciated that these measures will not apply to many people at all but if anybody would like further information, then please do not hesitate to contact us.

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Spring Statement

We are pleased to attach our summary of the Spring Budget Statement which also includes a number of potential tax saving tips and a summary of tax rates applicable for the tax year ending 5 April 2023.

If you have any queries as to how the changes announced in the Spring Statement over and above those in the Autumn Budget might affect you, then please do not hesitate to contact us.

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The Martlet Partnership extends its warm congratulations to our Henry Van Perlstein who passed his Level 4 Financial Accounting exam this week with an excellent mark of 79%

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Companies House Reforms

The Government has set out plans to stop manipulation of the use of anonymous and fraudulent shell companies and partnerships.

This means that going forward, Companies House will become more active over company formation and receipt of information, rather than just acting as a “passive” processor.

More importantly, it will change the accounts filing requirements for small and micro companies which constitute by far the majority of the 4.4 million active companies registered with Companies House.

It will also mean that overseas agents will no longer be able to form UK companies and anyone setting up, running or controlling a UK company, will need to verify their identity with Companies House.

We do not yet know what format these changes will take.

Some of the more complicated and unnecessary filing options for smaller companies will be removed and there will be just two options, one for micro-entity and one for a small company.

The big change for small companies will be that they will be required to file a profit and loss account as well as a balance sheet.

There is also a prospect of simplification of using a File Once with Government approach so that the accounts need only to be filed once with Government which will probably mean the accounts will be filed simultaneously with HMRC although more details will be provided in due course.

We do not know the timetable for these changes but they will be at the forefront of our thinking and our advice to you as to how to deal with them.

The changes will be brought in through statutory instrument and there is no specific timetable for the introduction of these new rules but we understand that it is a priority for Government and part of the Economic Crime Bill.

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National Insurance Update

The Statutory Sick Pay Rebate Scheme expires on 17th March.

All claims for absences through COVID up to 17 March must be submitted to HMRC by 24 March which is of course an extremely tight deadline.

If we process your payroll and you would like us to assist with submitting claims for any members of staff who have been off sick with COVID, could you please let us have your details as soon as possible.

If you process these claims yourselves and you have relevant claim to make, please note that the time limit is extremely tight indeed.

It will not be possible to claim Statutory Sick Pay for employees who were absent from work due to coronavirus related or self-isolation absences that occur after 17 March 2022.

From 25 March normal SSP rules will return meaning that you will not be able to make a claim from HMRC in respect of any staff who are absent from work with illness.

National Insurance rate increase

We are sure that you are already aware of it but the rate of National Insurance both employees and employers and Dividend Tax will increase by 1.25% from 6 April 2022 in order to contribute towards the cost of the Health and Social Care Levy.

This increase is being processed as National Insurance for the time being but in the following tax year will give rise to separate entry on payslips and be denominated as the Health and Social Care Levy as distinct from National Insurance.

To that end, people whose dividend income is considerably short of the thresholds which increase a rate rise of income tax, should consider taking additional dividends before 5 April to mitigate liabilities.

The rate of Dividend Tax after 6 April for basic rate taxpayers will be 8.75%, for higher rate taxpayers will be 33.75% and for people whose income is more than £150,000 will be an eye watering 39.35% and that is after Corporation Tax of 19% (rising to 25%) has already been paid.

This will mean that very successful entrepreneurs operating through a company will next year pay tax at 64.35% at the top rate whereas employees on similar income will pay 47% – a point that the Chancellor does not seem to understand.

If you have any questions relating to the change in National Insurance and Dividend Tax Rates or the operation of sick pay recovery, please do not hesitate to contact us.

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Revenue Close Phone lines

Please note that HMRC are closing their VAT and corporation tax phone lines on Fridays for the foreseeable future to enable them to catch up with the backlog of post.

Therefore, please do not phone HMRC about these two taxes on Fridays as you will simply just not get through!

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The Martlet Partnership LLP gives you even more

We are proud of our local roots and enjoy being part of the thriving Worthing community. Whilst many of our clients are local we also serve clients from further afield. Wherever they are based and whatever they need, our focus is always on providing excellent advice and support, underpinned by great service.

What you might not know, is that we, and our clients, benefit from being part of the UK200Group, a group of chartered accountancy and law firms from across the UK and around the world.

Being part of the UK200Group means we have additional support, services, and expertise to offer to clients. Not many other local firms can offer this depth and breadth.

To illustrate:

· We are part of an extensive worldwide network which means that our clients have the very ‘best of breed’ support no matter how complex or straightforward their needs.

· We adhere to very strict quality and assurance standards which means you can sleep easy knowing that all advice and services are meeting high standards, each and every time.

· We get even more training than your average firm, it’s part of the commitment we make when joining the UK200Group. Which means … we are bang up to date on latest legislation, trends and best practice. Over the past 2 years in particular, with so many changes due to the pandemic and Brexit, we know how much our clients have valued this.

If you are someone who we have helped in the past – thank you for your support. If you haven’t yet benefited from our help, please do get in touch, we’d love to see how we can help you.

Below is a leaflet that explains a few of the other ways in which our membership of the UK200group benefits all our clients. To read more about the UK200Group click here –

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Omicron Hospitality and Leisure Grant

Arun District Council and Adur and Worthing District Councils are bringing their application deadlines for the Omicron Hospitality and Leisure Grants forward

If you are hoping to apply for the Omicron Hospitality and Leisure Grant (OHLG), it is important that you keep an eye on your local council websites. Application deadlines have been brought forward by some local authorities to give them time to process and determine grants before the 28 February 2022.

Having checked the websites of councils local to ourselves, we can confirm that application deadlines have been set at 28 February 2022. Other local authorities have similar deadlines.

Below you will find links to the council OHLG pages and the deadlines currently published there. We suggest making regular checks on the websites and submitting your application at the earliest opportunity.

Local AuthorityLink to Omicron Hospitality and Leisure Grant (OHLG)Deadline for applications
Arun District Council Feb 2022
Adur and Worthing District Councils  28 Feb 2022

As a reminder businesses eligible for the Omicron Hospitality and Leisure Grant can apply for grants of up to £6,000 depending on their rateable value. 

Eligible recipients will receive the following:

  • Rateable Value between £0 and £15,000, £2,700
  • Rateable Value between £15,000 and £51,000, £4,000
  • Rateable Value in excess of £51,000, £6,000

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VAT reclaimable on mileage

HMRC have revised the rates to be used for reclaiming the appropriate fraction of 1/6 of input VAT on mileage claims with effect from 1st December 2021 as follows:

Engine sizePetrol – rate per mileLPG – rate per mile
1400cc or less13 pence9 pence
1401cc to 2000cc15 pence10 pence
Over 2000cc22 pence15 pence
Engine sizeDiesel – rate per mile
1600cc or less11 pence
1601cc to 2000cc13 pence
Over 2000cc16 pence

It is interesting that the rate changes for VAT purposes but not the overall mileage rate of 45p a mile which has been the same where the petrol cost £50 per litre or £1 per litre!

Contact Us

The Martlet Partnership LLP
Martlet House
E1 Yeoman Gate
Yeoman Way
West Sussex
BN13 3QZ

Tel.: +44 (0) 1903 600555
Fax.: +44 (0) 1903 600828