Each tax year, individuals receive a Capital Gains Tax (CGT) annual exemption, allowing them to make gains up to a set threshold without paying CGT. However, this exemption does not roll over—if you don’t use it, you lose it!

By making full use of your CGT annual exemption, you can significantly reduce your tax liability when selling assets such as shares, property, or other investments.

Should You Sell Now or Wait?

If you have already used your CGT annual exemption for this tax year, you may want to delay any further disposals until after 5 April. Doing so means:

• You reset your exemption for the new tax year, benefiting from a fresh allowance.
• If you owe Capital Gains Tax, payment will not be due until 31 January of the following tax year.

Strategic timing can help you reduce your overall tax liability while improving cash flow.

How to Make the Most of Your CGT Allowance

To maximise tax efficiency, consider:

1. Spreading disposals across multiple tax years – Avoid exceeding your annual exemption by selling assets in stages.
2. Using allowances within a couple – Married couples and civil partners can transfer assets to take advantage of both partners’ exemptions.
3. Offsetting gains against losses – Any capital losses can reduce taxable gains, helping to minimise tax owed.

How We Can Help

At Lewis Brownlee, we offer expert Capital Gains Tax planning to ensure you make the most of your CGT annual exemption. Our services include:

• Tax-efficient disposal strategies to reduce CGT.
• Assessing whether to sell now or defer gains.
• Maximising tax savings through exemptions and reliefs.

Don’t miss out—if you need help with CGT planning, contact us today via our contact page for professional advice.

Using your CGT annual exemption wisely could save you thousands in tax—act now before it’s too late!

At Lewis Brownlee, we are proud to announce that the Research and Development Tax Credits claims we submitted in March exceeded £3 million—a new record for us! This milestone highlights the huge benefits available to innovative businesses through R&D tax relief.

If your company is investing in new products, processes, or technology, you could be eligible for valuable tax relief—potentially saving thousands.

What Are Research and Development Tax Credits?

The R&D Tax Credit scheme is a government incentive designed to reward companies that invest in innovation. Eligible businesses can reduce their tax bill or claim a cash refund based on qualifying R&D expenditure.

Your business may qualify if you are:

• Developing new products or services.
• Improving existing technologies.
• Overcoming scientific or technical challenges.

Even if your project was unsuccessful, you could still claim relief on the costs incurred.

How Much Can You Claim?

The amount you can claim depends on your business size:

• SMEs can claim up to 33% of qualifying R&D costs.
• Large companies using the RDEC scheme can claim 13% of eligible expenditure.

Given the potential savings, Research and Development Tax Credits should be a key part of any business’s financial strategy.

How We Can Help

At Lewis Brownlee, we specialise in securing maximum R&D tax relief for businesses. Our expertise ensures you claim everything you’re entitled to, maximising tax savings.

• Expert guidance on eligibility and qualifying costs.
• Efficient claim preparation to ensure compliance.
• Proven success, with over £3 million in claims secured in March alone!

If your business invests in innovation, don’t miss out on valuable tax relief. Contact us today via our contact page to find out how we can help.

Make sure you take full advantage of Research and Development Tax Credits—your next innovation could be even more rewarding!

From 6 April 2016, the threshold for income disregards for tax credits has been reduced from £5,000 to £2,500. This means that if your income increases within the tax year, the amount ignored when calculating tax credit entitlement is now lower—making it more likely that overpayments will occur.

Previously, an income increase of up to £5,000 would not affect tax credits for that year. With the reduction to £2,500, more households could face repayments if their income rises unexpectedly.

Why These Changes Matter

The reduction in income disregards for tax credits aligns the threshold for income increases and decreases. However, it also means that:

• More people may be overpaid tax credits, leading to unexpected repayments.
• Fluctuations in income will have a greater impact on tax credit entitlements.
• Careful tax planning is now even more important to avoid financial surprises.

For those who rely on tax credits, understanding these changes is essential to managing finances effectively.

How Tax Planning Can Help

With careful planning, you can reduce the impact of these changes by:

1. Managing income fluctuations – Spreading income over multiple tax years where possible.
2. Reviewing tax-efficient strategies – Using allowances and deductions to minimise taxable income.
3. Seeking professional advice – Ensuring you understand how changes in income affect your tax credit entitlement.

How We Can Help

At Lewis Brownlee, we provide expert advice on income disregards for tax credits and tax planning strategies to help you manage your financial position effectively. Our team can assist with:

• Minimising tax credit overpayments through strategic planning.
• Helping businesses and individuals optimise tax efficiency.
• Advising on income management to reduce financial uncertainty.

If you’re concerned about how these changes affect you, contact us today via our contact page for expert guidance.

By planning ahead, you can avoid unexpected tax credit repayments and ensure your finances remain stable.

Under the Construction Industry Scheme (CIS), contractors must submit a monthly CIS return to HMRC, even if no payments were made to subcontractors during the period. Failing to submit a nil return when required can lead to penalties, so it’s essential to notify HMRC correctly.

If you expect to have no CIS payments for an extended period, you can simplify your compliance by informing HMRC in advance.

How to Report a Nil Return

To avoid the risk of forgetting to submit a nil return, you can notify HMRC that you do not expect to make payments for the next six months. There are two ways to do this:

1. Tick Box 8 on your CIS return – This informs HMRC that no payments are expected for the next six months.
2. Call the CIS helpline at 0300 200 3210 – HMRC will update your record and assume a nil return for the specified period.

This prevents unnecessary monthly nil return filings and reduces the risk of late submission penalties.

What Happens If Your Circumstances Change?

If you resume making payments to subcontractors during the nil return period, simply submit a monthly CIS return as normal. HMRC will automatically remove the nil return indicator, and your usual reporting obligations will resume.

How We Can Help

At Lewis Brownlee, we assist businesses in managing CIS returns for nil payments and ensuring full compliance with HMRC requirements. Our services include:

• Managing CIS filings to avoid penalties.
• Ensuring correct reporting of nil returns.
• Providing expert guidance on all CIS obligations.

If you need help with CIS compliance, contact us today via our contact page for professional support. We are always happy to see how we can help. Plus, we have leaders in the field on site, so you’re in safe hands!

By staying on top of CIS returns, you can avoid fines and ensure smooth, hassle-free compliance.

Due to a defeat in the Upper Tribunal HMRC have clarified the legislation.

Tax returns for the years up to and including the year ended 5 April 2013 must be submitted by 5 April 2017. This may enable repayment where payments on account have proved excessive for older years.

Thereafter for the years ended 5 April 2014, 2015 and 2016 the time limits are 5 April 2018, 5 April 2019 and 5 April 2020. From 2016/17 the time limit will be four years from the end of the tax year to make the self-assessment.

Where this stands in relation to digital accounts remains to be seen!