Get your Accountants ready for a new year of accounting

Less than one month is left for the New Year and everyone is excited about what new things 2023 will throw at us. So do you have your accountant ready for a new year of changing corporation tax? No? Then you had better start moving to take advantage of all the new and tax-saving opportunities.

What are the rules that will see changes in them in the upcoming year?

Corporate tax rates are the first on the list

This one ought to hurt but the corporate tax rate is on its way to increase starting from 1 April 2023. If your company exceeds the profit slab of £250,000 the tax rate will increase by 25%.

For companies with less than £50,000 of profits, the tax rate of 19% will remain the same.

And for the companies which fall between the slabs of £250,000-£50,000, the tax rate will be reduced by marginal relief. It will be in a way that they will be liable to pay anywhere from 19% to 25%.

How can you benefit from this one?

According to Accountants in Coventry if your business wants to sell or dispose of any chargeable assets within the next few years, consider preponing the date to before 1 April 2023 to reap the benefits of it.

Super deduction

The super deduction, a capital allowance scheme introduced within the spring budget of 2021, refers to the additions acquired between 1 April 2021 and 31 March 2023. For the aforementioned additions companies can claim up to 130% and 50% first-year relief on main pool and special rate pool qualifying assets respectively.

It is far more beneficial than the 18% and 6% relief that is usually available.

QIPS or Quarterly installments payments

This regime is also on its way to huge changes as there new rules regarding it are going into effect from 1 April 2023. This regime makes large companies liable to pay tax in four equal instalments. The companies with taxable profits above £1.5m are deemed ‘large’ and for growing the QIPS only apply in the second consecutive year that the company is large.

For more updates on accounting and taxes visit Cheylesmore Accountants.