There are special VAT rules that allow two or more companies or limited liability partnerships, commonly referred to as ‘bodies corporate’, to be treated as a single taxable person for VAT purposes known as a VAT group.

These bodies corporate can register as a single taxable person or VAT group if:

• each body has its principal or registered office in the UK; and
• they are under common control, for example, one or more company is a subsidiary of a parent company.

The VAT group registration is made in the name of the ‘representative member’, who is responsible for completing and submitting a single VAT return and making VAT payments or receiving VAT refunds on behalf of the group.

This is particularly helpful for those whose accounting is centralised. As a VAT group is treated as a single taxable person, there is usually no requirement to account for VAT on goods or services supplied between group members. Only one VAT return is required for the whole group. However, all members of the VAT group remain jointly and severally liable for any tax debts.

There are other important points to be aware of in respect of a VAT group registration. For example, the representative member must have all the necessary information to submit a VAT return for the group by the due date. The partial exemption de minimis limits apply to the VAT group as a whole and not the members individually.

There is a tax-free limit of £30,000 for redundancy pay regardless of whether it is your statutory redundancy payment or a higher payment from your employer.

If you have been employed for two years or more and are made redundant, you are usually entitled to redundancy pay. The legal minimum you can receive is known as "statutory redundancy pay." However, there are exceptions, such as if your employer offers to keep you on or provides suitable alternative work, which you then refuse without a valid reason.

The amount of statutory redundancy pay depends on your age and length of service and is calculated as follows:

• Under 22: Half a week’s pay for each full year of service
• Aged 22 to 40: One week’s pay for each full year of service
• Over 41: One and a half weeks’ pay for each full year of service

Weekly pay is capped at £700, with a maximum of 20 years of service considered. The maximum statutory redundancy pay for 2024-25 is £21,000, with slightly higher limits in Northern Ireland.

Employers can choose to offer a higher redundancy payment, or you may be entitled to one based on the terms of your employment contract.

The government offers the following information regarding business cashflow.

If you do not have enough money coming in to pay for goods, services and taxes your company has, you are at risk of insolvency.

Why is cashflow important?

‘Cashflow’ is the term used for money coming in and going out of your company. Not having sufficient cash is one of the most significant factors in companies failing, even when they are trading effectively.

Having ready access to cash means you can pay bills as and when they are due.

When are you likely to experience cashflow problems?

Cashflow problems can strike at any time. But typically, you are most at risk from cashflow difficulties when your business starts and during periods of growth.

Starting up

When you start your company, there may be a lot of overheads and not a lot of money coming in. You might need to invest in equipment, materials, staff, training, premises or advertising.

Keeping a reserve of cash may reduce risks as you get started.

Business growth

Even successful business can experience cashflow difficulties as they grow.

If you are planning to expand your business, make sure you have funds available for unexpected as well as regular expenses.

Managing your cashflow

A key factor in managing your cashflow is making sure you are paid for goods and services on time.

Many businesses operate payment terms ranging from 30 to 90 days before invoices are paid.

Delays in getting paid are often the reason for cashflow difficulties so it is important to always agree payment terms that suit your individual circumstances. Anticipating payment delays is also something companies should consider.

If you are concerned about your business cash flow, please call so we can help you prepare a cashflow forecast.

The Office for Budget Responsibility (OBR) has offered the following explanation:

“Fuel duties are levied on purchases of petrol, diesel and a variety of other fuels. They represent a significant source of revenue for government. In 2023-24, we expect fuel duties to raise £24.7 billion. That would represent 2.2 per cent of all receipts and is equivalent to £850 per household and 0.9 per cent of national income.

Fuel duty is levied per unit of fuel purchased and is included in the price paid for petrol, diesel and other fuels used in vehicles or for heating. The rate depends on the type of fuel:

• the headline rate on standard petrol and diesel is 52.95 pence per litre, it has been frozen since 2011-12 and it reflects a temporary five pence cut introduced in 2022-23 and subsequently extended to 2023-24 and 2024-25. This also applies to biodiesel and bioethanol.
• the rate on liquefied petroleum gas is 28.88 pence per kilogram.
• the rate on natural gas used as fuel in vehicles (e.g. biogas) is 22.57 pence per kilogram; and
• the rate on ‘fuel oil’ burned in a furnace or used for heating is 9.78 pence per litre.

VAT is applied after fuel duty, so, for example, the pump price of a litre of petrol currently reflects the pre-tax price plus 52.95p for fuel duty plus 20 per cent VAT on the pre-tax price and a further 10.59p for VAT at 20 per cent on fuel duty.”

The interesting point here is that the fuel duty is a fixed price per litre and so over time the real value of the duty will decline due to inflation. This has been the case for many years.

Will this be an item that government will increase in the October budget?

HMRC together with the Department for Work and Pensions (DWP) have issued a press release urging tens of thousands of people to check if they are eligible to boost their State Pension utilising Home Responsibility Protection (HRP).

This HRP scheme has helped protect parents’ and carers’ State Pension. HRP reduces the number of qualifying years a person with caring responsibilities needed to receive, to secure a full basic State Pension. HRP was replaced by National Insurance credits in 2010.

Between 6 April 1978 and 5 April 2010, most eligible individuals automatically received Home Responsibilities Protection (HRP). However, this did not apply in all cases, and it is still possible to apply for HRP if you believe it’s missing from your National Insurance (NI) record. During Pensions Awareness Week, HMRC is encouraging those affected—primarily women at or near State Pension age—to check their NI records for gaps and potentially increase their State Pension at no cost.

If HRP is missing from someone’s NI record, it does not necessarily mean that their State Pension calculation is wrong, but it could be, especially if they took significant time-out from employment to raise a family.

The Exchequer Secretary to the Treasury said:

“The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”

If a claim is successful, HMRC will update the individual’s NI record, and the DWP will recalculate their State Pension entitlement. Depending on the individual’s situation, their State Pension entitlement may increase or stay the same.