Nicola Masters Audit & Accounts Director

• +44 (0)20 7832 0444
• Send me an email
• Connect with me on LinkedIn
• Download my vCard

Nicola Masters

Audit & Accounts Director

Nicola joined the firm in May 2020, having previously worked for another accountancy firm in Central London for 8 years, and has a degree in Accounting and Finance.

Nicola has a wide range of experience in audit, financial reporting and corporation tax for different sectors including manufacturing, retail, hospitality, private equity, charities and investment property.

As well as working in practice, Nicola also spent 2 years of her career working in industry.  This has provided her with valuable experience, gaining an insight into the workings of a business, which has enabled her to better understand the needs of her clients.

Nicola is focussed on client satisfaction, delivering a quality and personal-led service.  She believes that providing clients with the support they need, will enable them to focus their time on growing their business.

When time and weather permits, Nicola enjoys walking, kayaking, spending time with family and friends and eating out.

1 Mar 2022

Now that the pandemic is easing, have you had a chance to think about the other challenges you and your business may be facing soon, and how you can try and mitigate the impact of them?  Below we list a few of these, and what you can do to try and reduce the effects of them:

1. Repayment of Bounce Back Loans

The Bounce Back Loan Scheme closed on 31^st March 2021, and with 12-month repayment holidays having been provided, a lot of business will have either started, or will be having to start repaying these in the next months. Have you considered what impact this is going to have on your cash flow? Will your business be able to manage these repayments? If this isn’t something that you’ve currently considered and need help with, then we can help put a forecast in place, which will ensure you can plan for these additional outgoings.

2. Increase in National Insurance rates

From 6 April 2022, National Insurance contributions will increase by 1.25%, so now is the time to plan and consider whether you are able to take additional salary from your business before the rate increase kicks in.

3. Increase in tax rate on dividends and overdrawn Director’s loan accounts

In line with the increases mentioned above, from 6 April 2022 dividend tax and the tax rate on overdrawn Directors’ loan accounts will also increase by 1.25%, so again this is the perfect time to consider the best way to extract profits from your business in the most tax efficient way. 

4. Increase in corporation tax rates

From 1 April 2023, companies face an increase in corporation tax rates.  Rates will increase from 19% to 25% for companies with profits of over £250,000, with a tapered rate to apply for companies with profits above this threshold but under £250,000.

So, whether it’s a case of making sure you have sufficient cash flow to cover any additional taxes, or whether you would like to do some tax planning, then we would be happy to help with this.

It’s not all doom and gloom though! Whilst taxes are increasing, there are also savings to be made in other areas providing you plan appropriately:

1. Super-deduction on qualifying assets

From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery will be able to claim:

• a 130% super-deduction capital allowance on qualifying plant and machinery, and
• a 50% first-year allowance for qualifying special rate assets

In money terms, this means companies could reduce their tax bill by up to 25p for every £1 invested, so if you are considering investing in plant and machinery or special rate assets, then it may be worth speaking to us first, to ensure that the assets qualify and that the timing of it gives you the maximum tax saving possible.

2. Extended loss carry back

Previously, a trading loss for a tax year could be offset against profits of the same trade for the current and/or previous year. However, for tax years 2020/21 and 2021/22, additional relief is provided by allowing those unrelieved losses to be carried back and offset against profits of the same trade for three years before the tax year of the loss.  So if your profits have been impacted by the pandemic, there is still time to apply for a loss carry back on your corporation tax return, and claim a cash refund from HMRC, both of which we will be happy to assist you with.

3. COVID filing extension available to companies

If you and your business have been affected by Omicron and as a result of staffing or other issues will not be able to meet your company’s filing deadline (which is 9 months from the end of the reporting period), then Companies House are still offering a 3-month extension to your filing deadline, providing you apply for this before your normal filing deadline has passed. This may give you the extra time you need to get your accounts completed, without incurring unnecessary penalties.  This is something that you can apply for yourself, or that we would be happy to apply for on your behalf if you get in touch with us.

These are just a few examples, but the main point to take away is to plan! Whilst there are some things that are out of our control, being able to foresee potential problems and plan against them is crucial for a company’s survival and for ensuring your cashflow is being effectively managed, which has never been more important.

So, if you would like any more information or advice on any of the above points mentioned, then come and talk to us now, so that we can help you make the most tax efficient decisions for both you and your business and at the right time.