TC Mast & Associates

22/03/2024

Please note that the SBEE imposes criminal sanctions for both the company and its officers in default for not complying with the set statutory provisions set out in Schedule 4 of the SBEE regarding the process for abolishing bearer shares.

21/03/2024

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) became law in October 2023. The first set of changes to UK company law and Companies House processes are expected to be implemented from 4th March 2024. They include several changes which will have an immediate impact on the company formation process.

19/03/2024

The government has published guidance outlining how holiday pay should be calculated for part year and irregular hour workers from 1 April 2024.

15/03/2024

The reforms introduced under the Economic Crime and Corporate Transparency Act 2024 are being implemented in phases. The first phase of this implementation occurred on 4th March 2024.

14/03/2024

In the event that a Labour government comes to power following the next General Election, the reform to zero hours and casual contracts is likely to go even further.
The Labour Party is strongly opposed to the “one-sided flexibility” of zero hours contracts

14/03/2024

Understanding Data Protection in the UK

07/03/2024

05/03/2024

Small Business Finance Markets Report 2024
In this landmark tenth report, we examine how small business finance markets have evolved over the last decade (2014-2023), since the Bank published its first report in 2014.

Smaller business debt and equity finance markets have substantially evolved with a greater number and range of finance providers than ever before, but issues remain in the availability of finance for specific areas and groups of people.

Key findings contained in the 2023/24 report include the following:

The UK economy has experienced several economic shocks over the last decade, but finance providers, together with government support, have helped smaller businesses.
The smaller business lending landscape has changed substantially over the last decade with a greater range of debt finance providers than ever before.
UK equity finance markets have matured over the last decade, becoming deeper with a greater range of investors able to support companies at all stages of their development.
There remain regional and place-based challenges in getting finance to many parts of the UK, particularly equity finance.
Finance to female and Ethnic Minority businesses has changed little over the decade, but recent initiatives are beginning to raise awareness of the issues.
More recently, there has been an increase in the flow of asset finance in 2023, but other types of external finance have fallen including bank lending and equity finance, but these remain high compared to historical levels.
Further details and insights can be found in this year’s report here

22/02/2024

Understanding US Privacy Laws
It is important to recognize that in the US, privacy laws are still relatively new and as such are continuing to evolve. Privacy law in the US is typically fragmented with no single unitary body of law like the Data Protection Directive in the European Union. Instead, US privacy law is made up of a complex patchwork of federal and state laws and regulations that are developing and changing rapidly. This, combined with the fact that enforcement of US privacy laws is generally increasing, means that businesses need to take the legal requirement to protect personal information very seriously. In particular, legal requirements for US businesses are gaining strength in two key ways. First, many states are introducing comprehensive privacy statutes like the California Consumer Privacy Act of 2018 whose protections are similar to those in the European Union. Second, many states are also introducing laws requiring companies to improve their data security practices. For example, many have introduced laws incorporating the National Institute of Standards and Technology's Cybersecurity Framework. By setting out a risk-based approach to data security and referencing specific cybersecurity standards and guidelines, these laws mean that businesses must take a more proactive approach to data security than ever before. This is especially true in light of the fact that breaches are becoming more and more common, following the trend that we discussed earlier. For example, between January and September 2018, there were 850 publicly disclosed data breaches. Businesses that need to comply with these laws but fail to do so will be subject to serious penalties and fines. Penalties can include monetary fines based on the number of affected records, damage actions brought by individuals whose personal information has been accessed due to a data breach, and injunctions by the state attorney general. Therefore, failing to comply with US privacy laws will mean a business in question is at risk of significant financial and reputational loss.

Reach out to us if you need to check whether your business is compliant with required Privacy laws. If an organization does not have an adequate and fully compliant privacy policy, it is liable to face Federal Trade Commission enforcement action. This means that your Company can be sued by the FTC either federally or before an administrative judge. Damages awarded in these cases should not be underestimated. REad more in the attached brief.

15/02/2024

Simplified Overview of Corporation Tax for Companies

Currently, there are two rates of Corporation Tax in place, which are determined based on the taxable profits of the company or organization. This tax applies to all taxable profits of UK tax resident companies, as well as the profits of non-resident companies that are generated through a branch operating in the UK.

It is important to note that these rates apply to both income and capital gains. Furthermore, it is worth mentioning that the method used to assess taxable revenue and deductible expenditure for corporations differs from the rules that apply to individuals:

• the lower rate - known as the 'small profits' rate
• the upper rate - known as the 'full' rate or 'main' rate

There is also a sliding scale between the lower and upper rates known as 'Marginal Relief'.

The rates of corporation tax since 1st April 2012 are as follows:
• The small profits rate, applying where profits are between £0 and £300,000, is 20% (remaining unchanged since April 2011)
• The fraction used in smoothing the difference between the small profits rate of 21% and the main rate of corporation tax (marginal relief) is 1/80 (was previously 3/200)
• Marginal relief applies to profits between £300,000 and £1,500,000 tapering out the benefit of the small profits rate
• The main rate of corporation tax is 24% on profits of over £1.5m for financial years starting on 1 April 2012 (from April 2011 was 26%)
• The rate of corporation tax for companies with ring fence profits, which include income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf, is 19% for financial years commencing on 1st April 2011 and 2012.

Additionally, the ring-fence fraction for these companies is 11/400. On the other hand, the main rate of corporation tax for companies with ring fence profits is 30% for financial years starting on 1st April 2011 and 2012. A special rate of 20% applies to unit trusts and open-ended investment companies. Groups of companies have the flexibility to distribute the profit limits among their members. This particular rate has remained unchanged for several years.

Dividends
The company's corporate tax obligation considers both the total profit generated by the company and any dividends distributed during the specified period.

08/02/2024

A brief overview of some upcoming changes to business rates in England in 2024. Stay informed!