Business news and opinion from Evans Weir

Catch up with key economic and business news and opinion from Evans Weir. If you would like to receive regular news direct to your inbox, you can subscribe to our monthly news email here.

2023/24 Tax year end – things to consider

Whether managing your corporate or personal tax affairs, March is a really good time to spend a little while preparing for the impending end of the tax year. As ever, the budget statement on 6th March means a number of changes will take effect from April 6th, requiring due consideration in advance. There are also those perennial matters for which prior planning prevents post-Christmas palpitations – Yes, now is a good time to be thinking self-assessment.

Is it a car? Is it a van? No, it’s a double cab pick-up….

Following, significant adverse feedback from motor manufacturers, businesses and drivers alike, the government has completed a U-turn on legislation that was set to change the tax classification on double cab pick-ups, treating them as cars rather than goods vehicles. Had they progressed with their plans, the tax on benefits-in-kind for employees, when provided with a double cab pick-up by their employers, would have increased, substantially.

11 Downing Street is home to Chancellor of the Exchequer and where the budget is drafted

Budget 2024 Analysis

In a rather combative presentation, Chancellor Jeremy Hunt delivered what is widely expected to be the last budget statement before the general election. With limited headroom and the now usual trail or announcements in the lead up to his commons speech, there were no big surprises arising from this budget. Even the 2p reduction in the National Insurance contribution paid by employees, which was supposed to be his big curtain call announcement, had already been ‘leaked’ before the budget.

Selling your property and investing the proceeds

After marginal decreases in property values in the latter part of 2023, and with mortgage interest rates still at their highest in more than a decade, some are using the chance to jump out of the property market, downsize or sell second properties and invest the cash.

If you’re thinking of selling property or downsizing and investing the proceeds, there are a few things you need to consider.

Will my eBay sales be classed as income for tax purposes?

New legislation that came into force from 1st January 2024, has left many individuals wondering whether they will end up paying tax on incomes generated through a range of online portals such as eBay and AirBnB. News of the reporting changes for digital portals spread like wildfire across social media with some suggesting this was a back door in for HMRC to begin charging tax on sales of unwanted goods and second-hand clothes. But clarity has now been provided to help online sellers and those renting properties via portals such as AirBnB understand what the new legislation is and when it might see them paying additional tax.

Making Tax Digital

Is the VAT Threshold Stunting Growth?

The VAT threshold, the point at which you must register for VAT, has remained at £85,000 for some time despite the fact we’ve seen double digit inflation. There is now concern that this ceiling is stunting economic growth and may be forcing some business to close their doors. The main issue relates to those businesses that have taken an active decision to remain below the threshold because they fear registering for VAT would make them uncompetitive.

How to manage stock and product costs?

If you’re a stock-based business, then getting your stockholding and product costings right can be tricky at the best of times. But recently, the effect of high shipping costs, long lead times, material shortages and inflation have made the job even harder. Get it right and you will have a strong cash flow, happy customers, efficient use of space and most importantly, profit on every item you sell! Get it wrong and you risk letting customers down, locking-up valuable working capital and reducing your margins.