Author: Glenn

To calculate your Council Tax, you need to know the following:

• The valuation band of your property in England, Wales, or Scotland
• The amount your local council charges for that band
• Whether you qualify for a discount or exemption from the full bill

If you are on a low income or receive benefits, you may be eligible for Council Tax Reduction (formerly known as Council Tax Benefit).

Your property may be put in a different band in some circumstances, for example if:

• you demolish part of your property and do not rebuild it;
• you alter your property to create 2 or more self-contained units, for example an annexe – each unit will have its own band;
• you split a single property into self-contained flats;
• you convert flats into a single property;
• you start or stop working from home;
• the previous owner made changes to your property;
• there are significant changes to your local area, like a new road being built; or
• a similar property in your area has its Council Tax band changed.

A full Council Tax bill is based on at least two adults living in a home. Spouses and partners who live together are jointly responsible for paying the bill.

Certain people are not counted (‘disregarded’) when working out how many people live in a property. Your Council Tax bill may be reduced if there are disregarded people living in your property. There are also discounts that may be available for households where everyone is a full-time student or if someone living in the property is disabled.

If you think you have overpaid your Council Tax bill you need to contact your local council to discuss a refund.

According to the Office for National Statistics as of October 2024, the primary concerns among individuals in the UK are:

1. National Health Service (NHS): 85% of adults identified the NHS as a significant issue, reflecting widespread apprehension about healthcare services.
2. Cost of Living: 84% of respondents highlighted the cost of living as a major concern, indicating ongoing financial pressures on households.
3. Economy: 69% of individuals expressed concerns about the economy, underscoring unease regarding economic stability and growth.
4. Crime: 60% of adults reported crime as a pressing issue, pointing to fears about safety and security.
5. Immigration: 58% of respondents viewed immigration as an important issue, reflecting debates over immigration policies and their societal impacts.
6. Housing: 58% of individuals identified housing as a significant concern, highlighting challenges related to housing affordability and availability.

These findings are based on data collected by the Office for National Statistics (ONS) between 2 and 27 October 2024.

Additionally, a Statista survey from October 2024 reported that 50% of UK respondents considered the economy one of the main issues facing the country, emphasizing the prominence of economic concerns.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It's a widely used financial metric that provides a measure of a company's operating performance, excluding the effects of financing, accounting, and tax decisions. By focusing on earnings from core operations, EBITDA offers a clearer view of a company’s profitability and cash-generating potential.

Why is EBITDA Useful?

1. Standardisation for Comparisons:
   It allows analysts and investors to compare companies across industries or regions without accounting for differences in financing (interest), tax environments, and accounting practices (depreciation and amortisation).
2. Focus on Operations:
   Excluding non-operational expenses like interest or tax, EBITDA highlights the efficiency and profitability of the core business.
3. Cash Flow Proxy:
   Although not an exact measure of cash flow, EBITDA approximates the cash a business generates before paying off capital expenses, taxes, or interest.

Advantages of EBITDA

1. Simplifies Analysis:
   EBITDA ignores factors like tax policies or depreciation schedules that vary by country or industry, making it easier to compare profitability.
2. Evaluating Acquisition Targets:
   Often used in mergers and acquisitions to assess a company’s ability to generate cash and service debt.
3. Non-Cash Adjustments:
   It eliminates the impact of non-cash charges (depreciation and amortisation), focusing on actual operational results.

Limitations of EBITDA

1. Excludes Key Costs:
   By ignoring interest, taxes, and capital expenses, EBITDA can give an inflated sense of profitability, especially for capital-intensive businesses.
2. Not a Cash Flow Substitute:
   While it’s a useful proxy, EBITDA doesn't reflect changes in working capital, capital expenditures, or actual cash flows.
3. Potential for Misuse:
   Some companies may over emphasise EBITDA to mask issues like high debt levels or significant tax liabilities.

The vehicle benefit charges for 2024-25 were announced at Autumn Budget 2024. The government will introduce legislation by statutory instrument in December 2024 to ensure the changes are reflected in tax codes for tax year 2025-26.

Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. The car fuel benefit charge will increase in 2025-26 to £28,200 (from £27,800).

The fuel benefit does not apply when the employee pays for all their private fuel use.

The standard benefit charge for private use of a company van will increase to £4,020 (from £3,960). A company van is defined as ‘a van made available to an employee by reason of their employment’. There is an additional benefit charge for fuel for a van with significant private use. The limit will increase in 2025-26 to £769 (from £757). If private use of the van is insignificant then no benefit will apply.

As part of the Autumn 2024 Budget measures, the government introduced new anti-avoidance provisions to prevent the abuse of the existing close company anti-avoidance rule. The measure will have effect for any tax avoidance arrangements falling within the scope of the announcements that are made on or after 30 October 2024.

The government has said they are introducing this new measure as they have become aware of arrangements using a group of companies or amongst associated companies, so that new loans are made and then repaid in a chain such that no s455 charge arises on the increasing amounts extracted. Chapters 3A and 3B cannot catch the behaviour.

It will be clear under new legislation in Finance Bill 2024-25, that where the TAAR applies (where companies and their shareholders are attempting to avoid the s455 charge on any extractions), tax is payable whether or not there has apparently been a repayment, or a repayment is subsequently made. Section 464B of the CTA 2010, which currently provides relief from the charge in cases where a return payment is made (even if the payment is made for avoidance purposes), will be repealed and relevant amendments will be made to Section 464D.