The tax reliefs and allowances available to your business
HMRC is encouraging business owners, employers and the self-employed to check online to make sure they are not missing out on a range of tax reliefs and allowances.
One page summary of all tax reliefs and allowances
HMRC’s new page on GOV.UK summarises items that people running their own businesses should explore that could help them keep more of what they earn. With just one click, businesses, employers and the self-employed can find out their eligibility for tax reliefs and financial allowances, as well as how to claim them.
Tax-deductible business expenses
- If you’re self-employed, you can deduct some of your running costs as part of your annual tax return, as long as they’re an allowable expense.
- You may be able to claim tax-deductible expenses for items including office stationery, insurance, bank charges and even heating and lighting for your office, home office or business premises.
Research and Development (R&D) tax credits
- If your company is involved in innovative projects in science or technology, you may be eligible to claim R&D reliefs which can even be claimed on eligible unsuccessful projects.
- Companies (and unincorporated associations) can claim tax relief for qualifying donations paid to charities (bodies or trusts accepted as charities for UK tax purposes).
Corporation Tax relief
- You can deduct the costs of running your business from your profits before tax when you prepare your company’s accounts. This could include things like buying machinery or tools that you use for your business.
- If your business employs people, you may be able to claim Employment Allowance which allows eligible employers to reduce their annual National Insurance liability by up to £5,000.
- If you are in the process of setting up a new business, you may be able to claim back some of the expenses incurred before you started trading through your first tax return.
- If you are a VAT-registered business, you can reclaim VAT on qualifying goods and services you buy for use in your business.
Business rates relief
- Some properties are eligible for discounts from their local council on their business rates. This is called ‘business rates relief’. Please note that the guidance on business rates relief on GOV.UK is only for businesses based in England.
Zero Emission Propulsion CR&D competition
Innovate UK has announced a new collaborative research and development (CR&D) competition. UK-registered businesses can apply for a share of up to £10 million for net zero propulsion innovative projects.
Projects must demonstrate significant improvements in net zero propulsion technologies which may apply across multiple transport modes.
The programme aims to build on previous sector-specific mobility programmes by creating a cross-sector platform. You are encouraged to apply your knowledge and capability to adjacent transport sectors including automotive, aerospace, maritime and rail.
Your project must focus on one or more of the following transport sectors:
- Maritime – Clean maritime technologies for all sizes and categories of maritime vessels are in scope. Solutions can be suitable for one target size of vessel or multiple. Leisure and commercial vessels are in scope.
- Rail – Technologies can target all locomotive classes including those for freight and passenger carrying services and carriages.
- Automotive – Technologies can cover both niche and mainstream on and off-road vehicles. This includes categories L (mopeds and motorcycles only), M (car and passenger carrying) and N (goods vehicles). Construction vehicles and special use vehicles such as emergency vehicles (for example, ambulances and fire engines), refuse collection vehicles, and recreational vehicles (for example, motorhomes) are also eligible. There are restrictions on the use of hydrogen combustion.
- Aerospace – Technologies for drones or unmanned aircraft systems (UAS), advanced air mobility (AAM), and electric or hybrid passenger aircraft.
Your project must address one or more of the following:
- Improved range and overall system performance capability
- Decreased total cost of ownership
- Adoption of and transition to zero-emission end products
- Strengthening of the UK supply chain
Welsh Government response to the Chancellor’s statement on the Medium-Term Fiscal Plan
Rebecca Evans MS, Minister for Finance and Local Government commented last week on the new chancellor’s fiscal plan:
“In the wake of the ongoing turmoil caused by the mini budget, the new Chancellor has now reversed most of the tax changes made a few short weeks ago in the hope of stabilising the financial markets and reducing the size of the hole fracturing public finances.
“The economic outlook was already challenging, as a result of the EU exit, the pandemic and the cost-of-living crisis.
“But the perilous situation which the UK’s public finances are now in is inexcusable. This is a direct result of the flawed and reckless measures announced in the UK Government’s mini-budget on 23 September and which were the central pillar of the Prime Minister’s leadership campaign.”
“The fall-out from the mini-budget has been mayhem in the financial markets; mortgage costs have risen sharply, as has the cost of government borrowing; the Bank of England has had to take extraordinary measures to prevent a collapse in pension funds, and household budgets have been stretched even further.”
“Our economy and UK finances are now in a far worse situation than they were less than a month ago as a result.”
Ms Evans then notes that inflation has already significantly eroded the Welsh Government’s budget settlement to worryingly low levels. This statement continues to fall far short of what is needed to meet the challenges faced by public services and workers. The UK Government must provide Wales with additional budget flexibilities.
We will have to wait to see what the UK government decides regarding the Welsh budget settlement and the Welsh Government’s Budget will be published on 13 December.
International Trade Week 2022
From 31 October to 4 November 2022, International Trade Week is back and set to showcase a brand new series of events designed to help businesses of all shapes and sizes maximise their global potential.
Businesses will be able to find out more about key export strategy initiatives, such as the Export Support Service and the Export Academy.
For further information, see: https://www.events.great.gov.uk/website/8822/
The Welsh Government provides a range of support, guidance and advice that can assist you wherever you are on your export journey. See: https://businesswales.gov.wales/export/
Help to Grow: Digital
Help to Grow: Digital is a UK-wide scheme to help small and medium-sized businesses (SMEs) adopt digital technologies that are proven to increase their productivity.
The scheme will offer SMEs free and impartial advice on how technology can help their business. An online platform will help them to:
- Identify their digital technology needs.
- Assess technology purchasing options.
- Implement new technologies in their operations.
The scheme will also offer eligible SMEs a grant token worth up to £5,000 to cover up to half of the costs of pre-approved, digital technology solutions.
For further information, visit gov.uk/helptogrow