by Pi Accountancy | Jul 25, 2024 | Business
The Cycle to Work Scheme The Cycle to Work scheme helps employees purchase bicycles and equipment through a tax-efficient loan. Employers buy the bikes and lease them to employees through a salary sacrifice arrangement. This means employees pay for the bike in monthly...
by Pi Accountancy | Jul 23, 2024 | Frequently Asked Questions
What is the Lower Earnings Limit? The Lower Earnings Limit (LEL) is the minimum amount an employee must earn to qualify for certain state benefits and to start earning entitlement towards the State Pension. It is not the amount at which employees begin paying National...
by Pi Accountancy | Jul 18, 2024 | Frequently Asked Questions
What is Maternity Allowance? Maternity Allowance supports pregnant women and new mothers who do not qualify for Statutory Maternity Pay. Often, self-employed women, those recently employed, or those who haven’t worked with their current employer long enough, do...
by Pi Accountancy | Jul 17, 2024 | Frequently Asked Questions
What is Personal Allowance? Personal Allowance refers to the amount of income each individual in the UK can earn tax-free each year. HMRC has set this amount at £12,570 for the 2023/24 tax year. As a result, if your annual income is below this threshold, you...
by Pi Accountancy | Jul 16, 2024 | Frequently Asked Questions
What is Self-Assessment? HMRC uses the Self-Assessment system to collect Income Tax and requires taxpayers to complete a yearly tax return. Self-Assessment is essential for those who do not have their taxes automatically deducted from their earnings or for those with...
by Pi Accountancy | Jul 11, 2024 | Frequently Asked Questions
Does Tax Apply to Marketable Securities? Yes, tax does apply to Marketable Securities. Marketable securities quickly and easily convert into cash due to their high liquidity. Common stocks, treasury bills, and bonds, traded on public stock exchanges, are examples of...
by Pi Accountancy | Jul 10, 2024 | Frequently Asked Questions
What is Football Transfer Tax? Football Transfer Tax refers to the tax implications and regulations surrounding the transfer of football players between clubs. There is no specific tax but rather various tax considerations that come into play during the process of...
by Pi Accountancy | Jul 9, 2024 | HMRC
Tax Bands and Rates for 2024/25 This blog aims to break down the current tax bands and rates, personal allowances, and additional allowances that could affect your tax liabilities for the tax year running from 6 April 2024 to 5 April 2025. Your Tax-Free Personal...
by Pi Accountancy | Jul 4, 2024 | Business
Holiday Accrual on SSP When employees are unable to work due to sickness, they may be eligible for Statutory Sick Pay (SSP), currently set at £116.75 per week for up to 28 weeks in the UK. During these periods, employees still accrue Holiday or Annual Leave. Employees...
by Pi Accountancy | Jul 3, 2024 | Frequently Asked Questions
What is a P11D? The P11D form is used by employers to report expenses and benefits provided to directors and employees that are not processed through payroll. Examples include company cars, health insurance, and other non-cash benefits. Each director or relevant...
by Pi Accountancy | Jun 28, 2024 | Frequently Asked Questions
What is the VAT Flat Rate Scheme? The VAT Flat Rate Scheme (FRS) simplifies the way small businesses manage their VAT payments. Instead of calculating the VAT on every transaction, businesses pay a fixed rate of VAT to HMRC – depending on the industry. Key...
by Pi Accountancy | Jun 26, 2024 | Frequently Asked Questions
What is Corporation Tax? Corporation Tax applies to the profits of limited companies and other organizations, such as foreign companies with a UK branch, clubs, cooperatives, and unincorporated associations. The tax applies to profits from business activities,...
by Pi Accountancy | Jun 20, 2024 | HMRC
Student Loans Student loans are primarily provided by the government to help cover the cost of higher education. These loans are essential for many students who need to pay their university tuition fees and maintenance costs (such as living expenses). Types of Student...
by Pi Accountancy | Jun 19, 2024 | Taxes
Marriage Allowance Transfer Marriage Allowance transfer allows one spouse to transfer a portion of their Personal Tax Allowance to the other, providing a tax reduction if certain conditions are met. Who is Eligible? You may qualify for Marriage Allowance if:...
by Pi Accountancy | Jun 18, 2024 | Frequently Asked Questions
What is Marriage Allowance? Marriage Allowance is a government initiative aimed at reducing the tax burden for married couples or civil partners. This scheme allows one partner to transfer a portion of their unused personal tax allowance to their spouse or civil...
by Pi Accountancy | Jun 13, 2024 | Business
Trivial Benefits A trivial benefit is a small gift or perk provided to an employee that costs £50 or less. To qualify as a trivial benefit, the gift must meet the following criteria: It costs £50 or less to provide, including VAT. It isn’t cash or a cash...
by Pi Accountancy | Jun 12, 2024 | Taxes
Tax on Tips and Gratuities All tips and gratuities, whether received in cash directly from the customer or added electronically via card or cheque, are subject to Income Tax. Depending on how these tips are managed and distributed, National Insurance Contributions...
by Pi Accountancy | Jun 11, 2024 | Taxes
High Income Child Benefit Charge If you or your partner earn over £60,000 annually, you may be subject to the High Income Child Benefit Charge (HICBC). The HICBC is a tax charge that applies if either you or your partner have an individual income exceeding £60,000....
by Pi Accountancy | Jun 6, 2024 | Frequently Asked Questions
What are Dividends? Dividends represent a portion of a company’s profits that the company distributes to its shareholders. If you own shares in a company and that company has had a profitable year, you might receive a dividend. Dividends are not a cost to the...
by Pi Accountancy | Jun 5, 2024 | Frequently Asked Questions
What is Net Profit? Net Profit is the amount of money that remains from a business’ revenues after all operating expenses, interest, taxes, and other costs have been subtracted. It is a clear indicator of a company’s financial performance over a specific...
by Pi Accountancy | Jun 4, 2024 | Frequently Asked Questions
What is Gross Profit? Gross Profit refers to the total revenue subtracted by the cost of goods sold (COGS). These costs include all the expenses directly associated with the production of goods or services your business sells, such as raw materials and labour. It does...
by Pi Accountancy | May 30, 2024 | Frequently Asked Questions
What is Construction Industry Scheme (CIS)? The Construction Industry Scheme (CIS) is a tax deduction system in the UK, which governs how payments to subcontractors for construction work must be handled by contractors in the industry. Under the scheme, contractors are...
by Pi Accountancy | May 29, 2024 | Taxes
Payments on Account Payments on account (POA) are advance payments towards your personal tax and, where relevant, your Class 4 National Insurance bill. You may need to make them if you are self-employed or if you are a landlord and you complete an annual...
by Pi Accountancy | May 28, 2024 | VAT
7th June VAT Deadline The 7th June marks the due date for VAT returns and payment for the quarter ending 30th April if the returns are filed electronically. This deadline applies to businesses that file their VAT returns electronically, which is now the norm under the...
