As always expenses and employee benefits are a complete minefield when it comes to HMRC guidelines, as ever our Tax-Man (aka Richard McDermott) comes to the rescue:

Trivial Benefits are tax and national insurance free purchases given to an employee, not only that, you don’t even have to let HMRC know!

Just follow these simple guidelines:
  • Cost under £50
  • It isn’t cash or a voucher
  • Must not be a reward for performance
  • Isn’t a contractual bonus or incentive

Alas, any benefit that doesn’t meet the above criteria is taxable.
Rishi Sunak has announced some fantastic news for businesses looking for increased flexibility for furloughed employees, which is further proof of the governments intensions to systematically return businesses back to ‘normal’ trading.
From the 1st July 2020 businesses will have the flexibility to bring previously furloughed employees back to work on a part-time basis – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
If you would like to stay informed with the latest updates on COVID support please follow us on our social media pages, which are updated daily.
Even though tax is inevitable, occasionally, the rules are adjusted to encourage companies to act in a certain way to claim reductions or rebates on tax. R&D tax relief is designed to support companies that work on innovative projects in science and technology. It can be claimed by companies that seek to research or develop an advance in their field.

We have completed R&D claim’s for clients, which resulted in a corporation tax repayment of well over £60k.

So, for a company qualifying for £100k worth of R&D, there are additional qualifying costs of £130k taking the total which can be reclaimed to £230K.

It can reduce the corporation tax liability by £130k x 19% = £24.7k. Alternatively, if the
company records a loss, a repayable R&D tax credit of 14.5% can be claimed, resulting in a welcome cash boost to the business.
Superhero Tips!
The Financer - aka Phil Archer
"Businesses that have already bought assets like equipment for cash purchase, can apply for finance any time prior to delivery. The earlier the better as the supplier would need to rework the invoice to address it to the finance company. Effectively spreading the cost of the asset over a longer period of time."
Captain Ops - aka Karolina Jankos
"Human “assets” are what differentiate most business from its competitors, not the tangible and intangible ones. They are the most essential contributors towards profits and shareholder value. So, look after your team, especially now with these strange, uncertain times they will need your support more than ever."
A Bit of Fun
If like us you’re looking for some cerebral training to keep yourself going in lockdown, why not give our d&t themed crossword a go!!
(click the image to enlarge/print)
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