What is the DWP Christmas Bonus? The DWP provides a one-off £10 Christmas Bonus each December to qualifying individuals. Since it’s introduction in 1972, this payment has aimed to support those on certain benefits with the financial strain of the festive period....
Early Christmas PAYE Reporting During the Christmas period, many businesses close for several days or even weeks, prompting them to process payroll ahead of schedule. This change allows employees to receive their wages before the holidays, easing financial pressure....
Temporary Christmas Staff Businesses hire temporary Christmas staff, or “Christmas Temps,” during the holiday season to manage the increased workload and meet higher customer demand. Christmas Temps work on short-term contracts that usually last a few...
E-Bikes for Businesses E-bikes are bicycles equipped with an integrated electric motor and battery. This motor assists the rider’s pedalling, making cycling less effort-intensive. While they still require pedalling, the electric assistance can provide a boost,...
Advisory Fuel Rates for Company Cars HMRC sets the Advisory Fuel Rates (AFRs) to guide employers in reimbursing employees for business travel in company cars. These rates ensure the reimbursements are tax-free, provided they accurately reflect the fuel costs incurred....
Company Cars and Vans The government detailed important updates in the recent Autumn Budget on taxing company cars and vans, with a particular focus on electric vehicles and low-emission options. Whether you’re considering a new company car or an electric...
Self Assessment Penalties Filing your Self Assessment tax return on time can help you avoid penalties from HMRC. These penalties can quickly add up, leaving you with more stress than just paying your tax bill. What Happens if You’re Late Filing Your Tax Return...
QuickBooks Self-Employed App Removal Starting January 2025, the QuickBooks Self-Employed app will no longer be available for download from the App Store and Google Play. However, if you have already downloaded the app, you can continue using it as usual. It will...
Going Paperless with the HMRC App If you find yourself puzzled by the absence of your usual Self Assessment letter, you’re not alone. HMRC is reducing the number of paper communication it sends, encouraging taxpayers to manage their affairs digitally. If you’re...
Self Assessment for Contractors If you work as a self-employed contractor, you will likely need to submit a Self Assessment tax return each year. This ensures that HMRC has a full view of your income so they can calculate your tax. Do Contractors Need to Submit a Self...
Self Assessment for Directors Contrary to popular belief, directors do not automatically need to register for Self Assessment. The need to register largely depends on the nature of your income. If you are a director with untaxed income, such as dividends from shares...
VAT Penalty System Under the new rules, if you submit your VAT return late, you may incur penalties. This change applies to all VAT accounting periods starting on or after 1 January 2023. Whether your return shows a payable VAT amount, a nil return, or a repayment,...
What is the VAT Threshold? The VAT Threshold is the point at which your business must register for Value Added Tax (VAT) with HMRC. HMRC currently sets this threshold at £85,000 in annual turnover. If your business’ taxable turnover exceeds £85,000 in any...
What is Value Added Tax (VAT)? Value Added Tax (VAT) is a consumption tax that applies to most goods and services sold by VAT-registered businesses. It impacts various transactions, including selling goods and services, hiring or loaning goods, and even...
Business Asset Disposal Relief Business Asset Disposal Relief is a tax scheme which helps business owners keep more of their profits when selling assets. Instead of paying the full 20% Capital Gain Tax (CGT) rate, BADR cuts it to 10% on gains from the sale of assets...
The Autumn Budget 2024 The 2024 Autumn Budget brings changes across wages, business taxes and public spending. Here’s an easy breakdown by category to help you understand what’s new and how it may impact you. Employers National Insurance Contributions The government...
What is Deferred Income? A business generates deferred income, sometimes called “unearned income”, when it receives payment in advance for something it has not yet delivered. Officials consider the income “deferred” because the business has not...
Abolition of the FHL Tax Regime During the Spring Budget 2024, the Chancellor announced the abolition of the Furnished Holiday Lettings (FHL) tax regime starting from April 2025. This change will affect many property owners who have benefited from the favourable tax...
What is a Trial Balance? A Trial Balance summarises all the debit and credit balances in a company’s accounting system. Typically prepared at the end of an accounting period, such as a month or a year, it is a key step in the accounting cycle. This process helps to...
What is Bank Reconciliation? Bank Reconciliation is the process of comparing the transactions recorded in your business’ financial records with the transactions listed on your bank statement. The aim is to ensure that the balances match, and if they don’t,...
What is a Company Year End? Your Company Year End depends on your business and typically aligns with the date you registered your company with Companies House. It’s different from the tax year, which runs from 6th April to 5th April. Your Company Year End typically...
What is a Financial Year End? A financial year end, also known as a business year end or fiscal year end, marks the end of a 12-month period that businesses use to report their financial performance. This period marks the time when businesses close their accounts and...
What is a Tax Year End? The UK Tax Year runs from 6th April until the 5th April of the following year. HMRC uses this timeframe to calculate your liabilities for the year, whether it’s Income Tax, Corporation Tax or Capital Gains Tax. For example: The tax year...
What is Solvency? Solvency refers to a business’ ability to meet its long-term financial obligations. Simply, it measures whether a business has enough assets to cover its debts. A solvent business is one that can pay off its liabilities over the long term,...
