Anna’s Accountancy Alerts – Week 27 (2nd – 8th October 2023)

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Ethical saving

Coventry Building Society has recently become the first building society in the UK to be awarded B Corp status. What is B Corp you wonder? It’s a certification given out by non-profit B Lab to organisations to demonstrate high social and environmental positive impact and transparency in their business practises.

Some of the saving rates offered by Coventry Building Society are well above average, so opting for a provider with strong ethical credentials could be good for your pocket as well as the planet.

The National Minimum Wage

HMRC’s National Minimum Wage (NMW) team have recorded webinars about salaried hours work and the National Minimum Wage.

The recorded webinars available to view at any time at National Minimum Wage webinars.

Dividend tax avoidance schemes

The arrangements seek to avoid tax by allowing the directors, who are also the main shareholders of a company, to divert dividend income away from themselves to their minor children. The children pay tax on the dividend received. However, due to the children’s £12,570 tax free personal allowance, £1,000 dividend allowance and their eligibility to the dividend basic tax rate, they pay much less tax than if their parents, the company owners, received the dividend.

HMRC’s view is that this scheme does not work as the arrangements are caught by specific anti-avoidance legislation contained in Income Tax (Trading and Other Income) Act 2005, from section 619 onwards, that prevents this type of arrangement providing the tax advantage that is sought.

If you or anyone at your business are using the tax avoidance scheme detailed in Spotlight 62, you should follow the steps outlined within it to leave and settle your tax affairs at the earliest opportunity.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.

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