Welcome to our March newsletter.
Wednesday was a very special day for me as the Managing Partner at Carpenter Box. We launched our 100-year celebrations with an event in our Worthing office. I had the privilege of welcoming distinguished guests including our local MP Sir Peter Bottomley, the Mayor of Worthing Cllr Henna Chowdhury, the High Sheriff of West Sussex James Whitmore, and the Director for the Economy at Adur & Worthing Councils, Martin Randall. We were also joined by some of our generous supporters, local charities and even a few previous Partners of Carpenter Box. It's an exciting year for everyone here at the firm, and you can read a bit more about our history on our website.
March also saw the latest Spring Budget from Chancellor Jeremy Hunt, which included quite a few updates around the pensions savings threshold, Corporation Tax rate increase and the introduction of 'full expensing' to replace the 'super-deduction'. Take a look at our dedicated Budget Hub which contains information to help you make sense of the latest changes and how they may affect you. We also have a few more articles covering upcoming changes for the new tax year and how to plan ahead.
I hope you enjoy this month's newsletter, and the upcoming Easter holidays.
If you have any questions or concerns please speak to your usual Carpenter Box contact or get in touch with our team.
View and pay your invoices on the Portal
You will receive an email notification when an invoice is added to the Portal, and you can make your payments online.
Why use the Portal?
Our bespoke client Portal ensures your information and documents are safe, and provides secure transmission of sensitive information. It also provides you with the ability to electronically approve certain documents and grant permissions to your users.
What do you need to do?
You don't need to do anything! You will continue to receive email notifications when documents (including invoices) are uploaded and can log in to view your invoices and other important information.
If you aren't using the Portal, your invoices will continue to be sent out via post or email. However, we encourage all clients to use the Portal to ensure the safe transmission of sensitive information.
If you haven't set up your Portal account and would like to, please email us at email@example.com so we can get you registered.
With thanks to our Sponsors
To celebrate our 100th birthday, our goal for the year is to give back to the community we've been a part of for 100 years. With the help of corporate donations and fundraising events throughout the year, we are aiming to raise £50,000 this year for our own Carpenter Box Charitable Foundation (CBCF).
All profits raised during the year will be donated to the CBCF, with funds going directly to local charities and organisations.
Thank you to our Sponsors for their support.
Carpenter Box's centenary celebrations!
To kick off our year of celebrations we were delighted to host a launch event at our Head Office in Worthing on Wednesday 29th March.
Guests were able to enjoy some Ridgeview sparkling wine and canapes whilst they met and and mingled with local businesses and charities. They also heard a few words from Carpenter Box partners John Billings, Robin Evans and Alan Edwards as well as Cllr Henna Chowdhury, James Whitmore and Tim Loughton who couldn't join in person but recorded a short video for the event.
Thank you to everyone who came along to the event to support us on this special occasion!
Spring Budget 2023
The Chancellor of the Exchequer, Jeremy Hunt presented the latest Spring Budget on Wednesday 15 March 2023.
There were some striking headlines on tax: the abolition of the limit on tax-favoured pension savings and the introduction of unlimited 100% deductions against profits for company investment in new plant were more generous than most predictions. There were measures to encourage 'economically inactive' people back into the workforce, ranging from increasing the provision of free childcare to the introduction of 'returnerships' - apprenticeships for people over 50.
Our Budget Hub contains insights and publications to help you digest the latest announcements and guide you through the financial measures that affect you.
Year end tax review and planning ahead for 2023-24
With the end of the tax year looming, we summarise 2022-23 and outline what to expect in the financial year ahead.
In 2022-23 we have had four different Chancellors of the Exchequer and three Prime Ministers. There were three Government fiscal statements in autumn alone and we expect another series of announcements in the spring, with the next Budget scheduled for 15 March 2023.
In the first of the Autumn fiscal statements the rates of all classes of National Insurance Contributions (NICs) were cut by 1.25 percentage points, from 6 November 2022. However, almost all the thresholds for both NICs and income tax have been frozen until April 2028.
What are the minimum wage rates from April 2023?
National Minimum and National Living Wage rates will all see increases of around 10% from 1 April 2023.
When calculating minimum wages certain payments must be included. These are:
- Income Tax and National Insurance contributions
- Wage advances or loans
- Repayment of wage advances or loans
- Repayment of overpaid wages
- Things the worker paid for that are not needed for the job or paid for voluntarily, such as meals
- Accommodation provided by an employer above the offset rate (£8.70 a day or £60.90 a week)
- Penalty charges for a worker's misconduct
How to build a resilient business in 2023/24
Despite a small growth in the economy in January of 0.3%, the UK has been struggling under the weight of high inflation and rising borrowing costs.
Most economists are predicting a contraction in the economy in the next six months. The British Chambers of Commerce forecast that inflation has peaked at 11% and will slow to 5% by the end of 2023. Conditions are likely to remain challenging for businesses and individuals alike, so now is a good time to focus on resilience.
There is no magic wand to wave, but experience has taught us that there are actions you can consider for your business, to make it more resilient in the economy we are trading in.
Identifying and Assessing the Risks of Material Misstatement
An auditor is required to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels. This allows the auditor to design and implement audit tests to reduce the risk of a material misstatement being unidentified in the audit of the financial statements.
The auditor's work and effort in responding to the assessed risks of material misstatement has been increased as a result of the revisions to ISA (UK) 315. These changes include enhanced requirements for risk assessment procedures which aims to promote consistency in procedures, scalability, simplicity, robust risk assessment, and more targeted responses to risks.
The revised standard and requirements are applicable for audits of financial periods commencing on or after 15 December 2021. So the first audits captured by this new standard are generally those with 31 December 2022 year ends and later.
International Women's Day 2023
Wednesday 8th March was International Women's Day!
International Women's Day is a global day celebrating the social, economic, cultural and political achievements of women. The day also marks a call to action for accelerating gender parity.
Our team marked International Women's Day with a lunchtime event in the breakout space in our Worthing office. All staff were invited to come along for some food and themed games including questions on Women's history and a 'Who said it' quiz.
Choosing the Best Cloud Accounting Apps for Your Business
Cloud accounting has become a popular method for managing accounting records for many businesses in recent years.
As a result, a plethora of add-on applications (apps) have emerged. This number of cloud accounting apps available can make it difficult to select the right app for your business. So, what should you consider and where can you seek advice?
There are the essential cloud accounting apps that are used by many businesses, offering daily efficiency. These include apps for:
- Streamlining the manual processing of invoices;
- Assisting with employee expense claims input and processing;
Running staff payrolls
Carpenter Box Financial Advisers news update
Read the March newsletter!
Spring is finally springing and the clocks go forward as we move into British Summer Time. It's a time of renewed hope and optimism for many, and a perfect time for making those important changes if our New Year's resolutions fell by the wayside.
March also sees us mark some significant dates, such as St David's Day, St Patrick's Day, Mother's Day and International Women's Day.
But, of course, we've recently passed the first anniversary of Russia's invasion of Ukraine, and this ongoing conflict is continuing to affect commodity prices and the wider cost of living both in the UK and around the world.
- Spring Budget Summary 2023
- Financial Update March newsletter
- Academies newsletter: Summer/Autumn 2022
- Domestic Reverse Charge
- Electric car tax considerations
- The Momentum of Electric Vehicles
- Trust Registration Service fact sheet
- SDLT for mixed-use transactions
For a full listing of our resources and information sheets, visit our resources page on the Carpenter Box website.
01 Apr 2023
- Corporation tax payment due for year end 30 June 2022.
- National living wage increases to £10.42 an hour for over-23s.
06 Apr 2023
- Start of new tax year
07 Apr 2023
- Due date for February VAT returns unless exempted.
14 Apr 2023
- Due date for income tax for the CT61 period to 31 March 2023.
19 Apr 2023
- If you pay by cheque through the post, monthly payments due for PAYE, class 1 NICs and student loan deductions from March 2023.
- Q4 PAYE/NIC payment due where paid by cheque. The cheque must be with HMRC by this date in order to avoid automatic interest charge.
- Construction Industry Scheme: monthly return due for period up to 5th of previous month.
22 Apr 2023
- Q4 PAYE/NIC payment due in order to avoid an automatic interest charge.
- If paying electronically, pay PAYE, class 1 NICs, student loan deductions and deductions from payments to subcontractors for the month up to the 5th of this month.
30 Apr 2023
- Filing deadline for corporation tax return self-assessment form CT600 for period ended 30 April 2022 to be submitted to HMRC.
Deadline for filing your annual accounts is 9 months after your company's financial year ends