by Pi Accountancy | Aug 20, 2024 | Advisory and Resources, Frequently Asked Questions, PAYE, Payroll and Employment
A P30 is a document that shows employers how much tax and National Insurance they owe for a specific period. Employers send this document alongside their payment to HMRC. Moreover, employers collect the required tax and National Insurance from employee wages. Read...
by Pi Accountancy | Aug 15, 2024 | Frequently Asked Questions
What is an Accounting Journal? An accounting journal is a record where businesses document their financial transactions in chronological order. This process is the first step in the accounting cycle and is crucial for accurate financial reporting. Accountants and...
by Pi Accountancy | Aug 14, 2024 | Frequently Asked Questions
What is an Accounting Ledger? An accounting ledger records all financial transactions organised by account. This ledger records every financial move made by the business, providing a comprehensive view of its financial health. Think of it as the backbone of a...
by Pi Accountancy | Aug 13, 2024 | Frequently Asked Questions
What is an Accounting Period? An accounting period is a specific timeframe for which a business prepares its financial statements and reports. The purpose of an accounting period is to provide a consistent basis for measuring and reporting financial performance. This...
by Pi Accountancy | Aug 7, 2024 | The Budget
The Bank of England Cuts the Base Rate to 5% On the 1st August 2024, the Bank of England cut the base rate from 5.25% to 5% – marking the first base rate cut in over four years! The Bank of England (BoE) uses the base rate to control inflation, which also...
by Pi Accountancy | Aug 6, 2024 | Frequently Asked Questions
What is a Business Bank Account? A business bank account specifically manages the finances of a business. Unlike personal bank accounts, business bank accounts offer features tailored to business needs, helping you to manage income, expenses, and financial...
by Pi Accountancy | Aug 1, 2024 | Advisory and Resources, CIS, Regulations and Schemes, Self-Employment and SMEs
Contractors under the Construction Industry Scheme (CIS), must deduct tax from payments made to subcontractors. CIS Statements are the actual documents which detail how much the contractor paid and deducted. Additionally, each statement covers one tax month and...
by Pi Accountancy | Jul 25, 2024 | Business
The Cycle to Work Scheme is a government-backed initiative that helps employees save money on bicycles and cycling gear. It aims to promote healthier and more sustainable commuting habits while reducing traffic congestion and air pollution. Since its introduction in...
by Pi Accountancy | Jul 23, 2024 | Advisory and Resources, National Insurance, Payroll and Employment, Pension, Regulations and Schemes
National Insurance funds the State Pension and several contributory benefits. However, not every worker pays National Insurance from their first pound of earnings. Instead, the system uses a series of thresholds, one of these being the Lower Earnings Limit (LEL). What...
by Pi Accountancy | Jul 18, 2024 | Advisory and Resources, Allowances, Regulations and Schemes, Self-Employment and SMEs
Maternity Allowance can support your income when you take time off to have a baby. Many self-employed parents rely on it. Additionally, some employees claim it when they do not qualify for Statutory Maternity Pay. What is Maternity Allowance? Maternity Allowance is a...
by Pi Accountancy | Jul 16, 2024 | Frequently Asked Questions, Self Assessment
HMRC uses the Self Assessment system to collect Income Tax and requires taxpayers to complete a yearly tax return. Self Assessment is for those who do not have their taxes automatically deducted from their earnings or for those with additional income sources....
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 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 | Jun 26, 2024 | Advisory and Resources, Corporation Tax, Frequently Asked Questions, Taxes
Corporation Tax is a tax that companies and certain organisations pay to HMRC on their profits. You calculate it for each accounting period, which usually matches your financial year. However, your first year can include more than one accounting period. Unlike many...
by Pi Accountancy | Jun 20, 2024 | Advisory and Resources
Student Loans are a form of support provided by the UK Government to help students cover the cost of attending university or college. They make higher education accessible to everyone, regardless of background. Student loans fall into two types: Tuition Fee Loans...
by Pi Accountancy | Jun 19, 2024 | Allowances, 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 | Allowances, 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 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
Child Benefit is valuable support for families raising children in the UK. However, if your income is above a certain threshold, you may need to repay some or all of it through the High Income Child Benefit Charge (HICBC). What is the High Income Child Benefit Charge?...
by Pi Accountancy | Jun 6, 2024 | Advisory and Resources, Business, Director
Dividends affect how many business owners take income and how investors earn returns. They offer a simple and flexible way to share profits, and they often provide tax advantages when used well. What are Dividends? Dividends are payments that a limited company makes...
by Pi Accountancy | May 30, 2024 | CIS, Frequently Asked Questions
The Construction Industry Scheme, or CIS for short, is a tax deduction system which ensures that contractors correctly handle tax payments for subcontractors. The scheme help regulate tax compliance and prevent tax evasion by requiring tax deductions at the source....
by Pi Accountancy | May 29, 2024 | HMRC, Self Assessment, Taxes
Payments on Account are advance payments towards your tax bill, based on your earnings from the previous year. HMRC assumes your income will remain the same and calculates your tax bill accordingly. Instead of paying your full tax bill in one lump sum, you make 2...
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...
