June Newsletter

June Newsletter

Check that your shares qualify for CGT business asset disposal relief 

A recent case before the tax tribunal has confirmed that all of a company’s shares are ordinary shares except those that carry a fixed rate of return.

This is crucial as CGT business asset disposal (BAD) relief requires a shareholder to be entitled to at least 5% of a company’s ordinary share capital in addition to being an officer or employee of the company, and for the company to be a trading company or the holding company of a trading group.

These conditions need to be satisfied throughout the 24 months prior to the disposal of the shares. This two-year rule is important if you are considering transferring some of your shares to other family members now that only the first £1 million qualifies for CGT BAD relief.

There are a number of further conditions that need to be satisfied by the shareholding in addition to the 5% ordinary share capital test. The shareholder must have 5% or more voting control and be entitled to 5% or more of the company’s distributable profits, and of its assets should be company be wound up. Those final two conditions do not need to be satisfied where the shareholder would be entitled to receive at least 5% of the proceeds on the hypothetical sale of the whole company.

 

How to pivot your business strategy

If your business is going through a tough period, it may be time to pivot your business strategy. Many businesses have had to pivot their strategies due to the current market conditions. Before doing anything else, it is imperative that you do your research; reassess your current business model and begin building a new approach from there.

Pivoting your strategy may involve targeting a different customer base, new routes to market or even a new range of products and services. If pivoting your strategy pushes you into a new market, you will likely need to re-evaluate your approach to sales, marketing and day to day business processes. 

In the current climate, many bricks and mortar businesses have pivoted their strategy to focus on online services, direct to consumer sales and home delivery models. 

Once you have evaluated when and where you need to pivot your strategy, you will need to move quickly in order to shift your business to the new model efficiently. Trust the data and insights that you gathered during the planning stage.

Decisive action will help you to avoid wasting time, effort and money. Communicate your new strategy to your people in order to gain their buy-in. Involve them in the planning and decision making which will build their trust and bring them on the journey with you.

If you can get your team members to buy into the new strategy and really get behind it, you are much more likely to succeed.

Create goals and objectives for your team that align with the new strategic direction of the firm. Don’t try to fix things that aren’t broken. A pivot in strategy doesn’t mean you need to change everything.

Once you pivot your strategy, ask your customers and staff for feedback. What has worked well, what could work better and what new ideas should you roll out as part of your new strategy? You can use this feedback to refine your new strategy and adopt further refinements. 

 

Scientific proof as to why you should have your dog in the workplace

With lockdown restrictions beginning to ease, more people have started returning to the office, which is great for moral and getting back to normality - not so great however, for their fluffy friends back home who are having to adjust to not having their owners company 24/7.

Not only will having your dog in the office help to prevent feelings of anxiety or stress that they may have, it may also help you. Scientific research has looked in to why dogs and the workplace go so well together and the results are very satisfying.It is, therefore, a great time to consider taking your dog to the office with you. Especially if it is a Covid puppy that has only ever known you to work from home.

Firstly, dogs relieve stress; research has found that interacting with dogs has the potential to reduce our levels of the stress hormone, cortisol and increase our levels of the feel-good hormone, oxytocin.

Dogs can improve communication amongst team members and contribute to company culture; a culture that is positively thriving can influence an employee’s attitude & aptitude to their work.

Dogs actually increase productivity; research identified that giving your mind a few minutes away from your work (which an office dog will definitely require you to do) means you return to your work feeling more engaged, refreshed and focused.

 

DIARY OF MAIN TAX EVENTS

JUNE/JULY 2021

Date

What’s Due

19/06

PAYE & NIC deductions, and CIS return and tax, for month to 5/6/21 (due 22/06 if you pay electronically)

01/07

Corporation tax for year to 30/9/20 (unless pay quarterly)

05/07

Last date for agreeing PAYE settlement agreements for 2020/21 employee benefits

05/07

Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2020/21

06/07

Deadline for forms P11D and P11D(b) for 2020/21 tax year. Also, deadline for notifying HMRC of shares and options awarded to employees.

19/07

PAYE & NIC deductions, and CIS return and tax, for month to 5/7/21 (due 22/07 if you pay electronically)

31/7

50% payment on account of 2021/22 tax liability due.