October 2024 brings significant changes to UK tax and accounting regulations, from corporation tax reporting to VAT adjustments for green energy businesses. Stay ahead by understanding these updates and see how Taxomonk can help you navigate the evolving landscape.

1. Corporation Tax Reporting for Small Businesses

One of the most impactful changes this month concerns Corporation Tax reporting requirements for small businesses. The government has introduced a simplified filing process for businesses with an annual turnover below £500,000. These businesses can now submit a simplified version of the CT600 form with fewer disclosures related to intangible assets and R&D tax reliefs. The move is designed to reduce administrative burdens on small business owners and streamline the filing process.

How Taxomonk Helps: Taxomonk’s expert team can guide small businesses in preparing simplified CT600 forms, ensuring they take full advantage of the streamlined requirements. Our tailored accounting services ensure that compliance is met without unnecessary complications, freeing up time for business growth.

2. VAT Rate Adjustment for Green Energy Businesses

As part of the UK government’s ongoing efforts to promote sustainability, VAT rates for renewable energy businesses have been adjusted. From October 2024, companies in the renewable energy sector will benefit from a reduced VAT rate of 5% on specific green energy products and services. This change aims to incentivize businesses to adopt cleaner technologies and transition to a more sustainable operational model.

How Taxomonk Helps: If your business is involved in the renewable energy space, Taxomonk can help you optimize your VAT accounting. Our specialists ensure accurate VAT calculations and timely submissions, so you can capitalize on the reduced rates and improve cash flow.

3. Changes in Capital Gains Tax (CGT) for Property Sellers

In October 2024, there’s an update on Capital Gains Tax (CGT) for individuals and businesses selling properties. The government has lowered the tax-free allowance from £6,000 to £3,000, making it essential for sellers to be aware of the increased tax liabilities when disposing of property. This move is expected to bring in additional revenue to fund infrastructure and social programs.

How Taxomonk Helps: Selling property? Let Taxomonk manage your capital gains tax obligations. Our experts help businesses and individuals minimize tax exposure by leveraging allowable expenses and exemptions, ensuring you pay the least amount legally required.

4. Extension of R&D Tax Reliefs

A positive development for innovative businesses is the extension of Research and Development (R&D) Tax Relief. The government has confirmed that enhanced reliefs will be available until 2026, with an increase in the payable credit rate from 14.5% to 16% for SMEs. This update aims to boost investment in research, innovation, and development across multiple sectors, driving the UK’s competitive edge globally.

How Taxomonk Helps: At Taxomonk, we offer comprehensive R&D tax relief advisory services. We assist businesses in identifying qualifying projects and preparing the necessary claims, ensuring you maximize the available credits while avoiding potential pitfalls in compliance.

5. Payroll Tax Updates: National Insurance Contribution (NIC) Adjustments

From October 2024, National Insurance Contributions (NICs) thresholds have been revised. The lower earnings limit for employee contributions has increased from £6,396 to £6,700, while the upper earnings limit remains unchanged at £50,270. This will have a marginal impact on payroll taxes for businesses and employees, but it’s important for companies to update their payroll systems accordingly to avoid under or overpayment.

How Taxomonk Helps: Taxomonk’s payroll services ensure accurate payroll tax calculations and adjustments in line with the new NIC thresholds. Our team provides seamless payroll processing, allowing businesses to focus on operations while we handle the compliance.

6. New Advisory Fuel Rates (AFRs) for Company Cars

A minor update has been issued for Advisory Fuel Rates (AFRs) used to calculate mileage expenses for company cars. The rates have been adjusted to reflect changes in fuel prices. Petrol, diesel, and electric cars will each have revised rates, with slight increases for petrol and hybrid vehicles.

How Taxomonk Helps: Businesses using company cars need to adjust their mileage expense calculations accordingly. Taxomonk offers advisory services on mileage calculations to ensure compliance with the new AFRs, helping you stay on top of payroll and expense management.

Conclusion in Latest Accounting and Taxation Updates in the United Kingdom (October 2024)

Staying updated with the latest accounting and tax changes is crucial for businesses aiming to remain compliant and optimize their financial performance. The updates in October 2024, from VAT adjustments to capital gains tax changes, present both challenges and opportunities for UK businesses.

How Taxomonk Helps Achieve Your Goals: Whether it’s filing CT600 forms, managing VAT, or ensuring R&D tax credits, Taxomonk’s team of experts is equipped to navigate these changes and help your business grow. Our customized accounting, bookkeeping, and tax services are designed to alleviate the burden of compliance, allowing you to focus on achieving your strategic goals.

Stay ahead with Taxomonk—your trusted partner in navigating the ever-evolving tax and accounting landscape.

Contact Taxomonk today:

If you need assistance with your accounting or tax matters, Taxomonk is here to help. Contact us at:

• Email: info@taxomonk.com, biz@taxomonk.com
• Phone: +91 97277 67679
• Website: www.taxomonk.com
• For more latest blogs please visit Latest blogs section

Book your free consultation Now:  Book Free consultation