Advisory fuel rates company car – an overview by Partner, Chris Goad:

New company car advisory fuel rates have been published and took effect from 1 September 2022.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 December 2022 are:

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 8p per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Martyn Benstead, Partner at Stephenson Smart Chartered Accountants and Business Advisors explains why now, more than ever, employing an accountant is important:

Financially, as well as politically, these are turbulent times.

Replacements in Prime Minister and Chancellor of the Exchequer are coming thick and fast and with these changes, volatility in the financial markets and economic climate inevitably follow.

Why employ an accountant at times likes these?

Good accountants relish change as it enables them to advise clients to take advantage of tax reliefs and of opportunities to maximise wealth.

Interest rates, tax rates and the markets are all changing constantly and it is hard to follow and understand what to do for the best with our finances and how to plan for the future.

Employing an accountant to your team at times like these is crucial and at Stephenson Smart, we’re available to help.

“Martyn was extremely helpful and clear and went above and beyond in trying to resolve the issues we had – even though it was our first meeting with him. We definitely got the sense that he cared about his work and clients and would do all he could to help. We had a very positive experience and would highly recommend Martyn and Stephenson Smart.”

Key areas that may affect you:

Property

If you are thinking about selling a residential property, you may need to be aware of the requirement to submit a Capital Gains Tax (CGT) Return and pay the tax due online within 60 days of completion. We can calculate the likely CGT to assist you in making an informed decision over whether to sell or rent your property.

Depending on the asset, you may be able to reduce any tax you pay by claiming reliefs.

As well as CGT, another factor needing consideration over whether to sell would be your inheritance tax position. Some assets would be subject to inheritance tax if left to beneficiaries in your estate at your death. Careful planning can assist in minimising the impact of this.

Business

There have been a raft of changes in the rates and thresholds in Income Tax, Corporation Tax, National Insurance and Dividend Tax.

It’s more important than ever to consider your business structure – whether you’re operating as a sole trader, partnership or limited company, it may no longer be the best for your circumstances.

Please contact us if you need a fresh look at how you structure your business.

Embarking on a new business start up is both an exciting and a challenging task, which carries with it an element of risk. Key decisions need to be made, and there are many factors to consider.  Partner, Chris Goad, highlights some of the key areas.

Business Plan

A business plan is an essential document that will guide you in establishing and growing your new venture; helping you focus your thoughts, providing you with targets and goals as well as giving you an indication of your cash requirements.

Finance

Business financing can take two forms: debt or equity. Debt means borrowing money. Loans may come from family, friends, banks, other financial institutions, or professional investors. Equity relates to selling an ownership interest in your business. Such a sale can take many forms, such as the admitting of a partner or, if you are in a company, issuing of additional shares to investors.

Getting a grant is also an option. There are many different small business and start-up grants available depending on where your business is based, how large it is and what you do.

Taxes, legalities, and insurance

A significant task for a new business owner is ensuring that the business complies with the extensive tax, legislation and insurance requirements that are imposed by various authorities. To avoid problems, penalties and – in some cases – legal action, it is important to understand your obligations.

“Chris has been brilliant. I can literally send him a text with a quick question, and he is always so helpful. With each start-up I have worked on Chris has guided me through the process and helped me with the business model. I haven’t had the need to worry about anything because I know Chris is always at the end of the phone with an answer.”

Sean Brown, owner, Cambridgeshire Hair and Beauty.

Stephenson Smart are specialist business start-up advisors. We can guide you through the decision-making processes, help you make the appropriate registrations, assist with cash flow forecasts and offer regular updates to enable you to monitor the performance of your business. Please get in touch if we can support you on your new business start-up journey.

Related articles: Stephenson Smart helps new business start up flourish

National Payroll Week was established by the Chartered Institute of Payroll Professionals in 1998 to celebrate the profession and to give it the recognition it deserves.

Here at Stephenson Smart, we are proud to do our bit in keeping the UK paid with 827 payroll clients across our offices.

We have payroll experts in our Gorleston, King’s Lynn, Wisbech and March offices, and due to demand we are investing in our next generation of payroll professionals by adding two new members of staff to our teams.

Abi Bisset-Smith is our new Trainee Payroll Administrator in our East Coast office, while Hannah Carter has joined our King’s Lynn team.

Abi, 23, who lives in Great Yarmouth, gained a BTech in art from college and spent three years working for The Post Office before she decided upon a change of career.

“My mum had a couple of friends who worked at Stephenson Smart, so I knew that it was a good company to work for.

“I didn’t know much about payroll, but I knew what an important role in plays in everyday life. My training is going well, I’ve still got a lot to learn, but I have got a great team who help answer my questions.

“I’m processing some of the simpler payrolls and I’m working towards getting my basic payroll qualification. I really like speaking to the clients, it’s really satisfying to see a payroll be processed successfully and know that I’ve helped.

“I like the fact that this career has longevity and that it’s doing something really positive for people.”

In her spare time Abi still puts her art qualification to good use by creating digital stylised portraits of people’s pets, as well as spending time with her identical twin.

Hannah, 20, is the latest payroll trainee in the King’s Lynn office. She initially studied history at the University of Lincoln before deciding it wasn’t the correct route for her.

“I’ve lived in Lynn for my whole life and I knew of Stephenson Smart from walking by it many times. I wanted to try something very different to what I had tried before, and I wanted a change from university type education.

Hannah said anyone choosing a career in payroll should be prepared to work to deadlines, be a team player and a good communicator.

“Payroll is very much deadline based, with remembering to get all parts of the job done by a specific date. It also involves working within a team and constant communication within that team.

“It’s so important for society because it makes sure everything is done according to legislation and it takes the weight off employers so they can focus their time on other aspects of their business.”

Hannah’s other passion is her role as a guide leader.

She is the fourth generation of her family to fulfil the role and is travelling to Switzerland with her unit in October. It will be the eighth time she has been, but the first as a leader.

Zoe Taylor, Payroll Manager at the East Coast office, said Stephenson Smart was focused on providing a strategic answer to all payroll issues, whatever the size or location of a business.

“We have four extremely busy payroll departments across our offices. It’s a key part of our business and our ethos is to completely absorb our clients’ payroll administration responsibilities so they can focus on other elements of their business.

“We’re delighted to have Abi and Hannah on board. Investing in our next generation of payroll experts is imperative as we build on our offer even further and it is good to take the opportunity to acknowledge them as part of National Payroll Week. ”

If you would like more information about our payroll services please contact us.

There are four ways you can get financial support for SMEs, to help you invest and grow.

1. Claim up to £5,000 with the Employment Allowance

Employment Allowance is a tax relief which allows eligible businesses to reduce their National Insurance contributions (NICs) bills each year. You can claim this if you are a business, and your employer Class 1 National Insurance liabilities were less than £100,000 in the previous tax year.

2. Get a discount of up to £5,000 on software, with Help to Grow

Help to Grow: Digital is a UK-wide government-backed scheme that aims to help you choose, buy and adopt digital technologies that will help you grow your business.

Eligible businesses can receive a 50% discount on buying new software worth up to £5,000 per SME, alongside free impartial advice and guidance about what digital technology is best suited to boost your business performance.

The Help to Grow: Management scheme provides small businesses with access to world-class business expertise on everything from leadership and financial management to marketing and digital adoption. This is delivered through leading UK business schools, alongside one-on-one support from a business mentor – and is 90% funded by the government.

By the end of the programme, you will develop a business growth plan to help you lead and grow your business.

To be eligible, you must be a UK-based SME, actively trading for at least one year and have a total of between 5 and 249 employees.

3. Get up to half off your business rates

From April this year, small retail, hospitality, and leisure businesses can benefit from 50% off their business rates bills.

The business rates multiplier has also been frozen for another year. This is used to calculate how much business rates should be paid; it usually rises with inflation each year.

The business rates multipliers for 2022 to 2023 are 49.9 pence for the small business multiplier and 51.2 pence for the standard multiplier.

From April 2022 there will be no business rates due on a range of green technology, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief.

4. Invest in your business with Super-deduction and Annual Investment Allowance

To spur business investment, the super-deduction allows companies to cut their tax bill by 25 pence for every £1 they invest in any qualifying machinery and equipment. This can include the purchase of computers, most commercial vehicles and office furniture.

The temporary £1 million limit for the Annual Investment Allowance has also been extended to the end of March 2023. This had been due to revert to £200,000 at the start of 2022. The Annual Investment Allowance allows businesses to spend up to £1 million on qualifying business equipment and deduct in-year its full cost before they calculate their taxable profits.

Both tax breaks remain available for firms to take advantage of until the end of March 2023, by incurring qualifying expenditure before then.

If you need help in accessing any of these schemes to help support your business, please get in touch.

Related articles: Super-deduction and Annual Investment Allowance