What is Maternity Allowance?

What is Maternity Allowance?

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...
What is Personal Allowance?

What is Personal Allowance?

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...
What is Self-Assessment?

What is Self-Assessment?

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...
Does Tax Apply to Marketable Securities?

Does Tax Apply to Marketable Securities?

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...
What is Football Transfer Tax?

What is Football Transfer Tax?

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...
Tax Bands and Rates for 2024/25

Tax Bands and Rates for 2024/25

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...
Holiday Accrual on SSP

Holiday Accrual on SSP

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...
What is a P11D?

What is a P11D?

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...
What is the VAT Flat Rate Scheme?

What is the VAT Flat Rate Scheme?

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...
What is Corporation Tax?

What is Corporation Tax?

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,...
Student Loans

Student Loans

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...
Marriage Allowance Transfer

Marriage Allowance Transfer

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:...
What is Marriage Allowance?

What is Marriage Allowance?

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...
Trivial Benefits

Trivial Benefits

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...
Tax on Tips and Gratuities

Tax on Tips and Gratuities

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...
High Income Child Benefit Charge

High Income Child Benefit Charge

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....
What are Dividends?

What are Dividends?

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...
What is Net Profit?

What is Net Profit?

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...
What is Gross Profit?

What is Gross Profit?

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...
What is Construction Industry Scheme (CIS)?

What is Construction Industry Scheme (CIS)?

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...
Payments on Account (2023/2024)

Payments on Account (2023/2024)

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...
7th June VAT Deadline

7th June VAT Deadline

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...
Landlord Self-Assessment

Landlord Self-Assessment

Landlord Self-Assessment Landlord Self-Assessment is the process by which landlords report their rental income and deductible expenses to HMRC. This annual submission determines your tax liable and is essential for all landlords earning over £1,000 annually in rental...
Chattels and Their Tax Implications

Chattels and Their Tax Implications

Chattels and Their Tax Implications Chattels are legally defined as ‘tangible movable property’, also referred to as Personal Property. These are physical items that can be touched and moved without altering the structure of a building or land. Examples...