by Pi Accountancy | Nov 20, 2024 | QuickBooks
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...
by Pi Accountancy | Nov 14, 2024 | HMRC
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...
by Pi Accountancy | Nov 13, 2024 | Self Assessment
Those who work as self-employed contractors will likely need to submit a Self Assessment tax return each year. This ensures that HMRC has a full view of the contractors income so they can calculate the appropriate tax. Do Contractors Need to Submit a Self Assessment?...
by Pi Accountancy | Nov 12, 2024 | Director, Self Assessment
Many directors assume that filing limited company accounts and paying Corporation Tax covers everything. However, HMRC treats your personal income separately from your company’s tax affairs. As a result, Self Assessment often applies to company directors. Many...
by Pi Accountancy | Nov 8, 2024 | Advisory and Resources, VAT
HMRC introduced a new VAT Penalty System on 1st January 2023. This system replaced the old default surcharge regime and introduced a clearer, points-based approach to late submissions and payments. Businesses that understand this system can protect themselves from...
by Pi Accountancy | Nov 7, 2024 | Frequently Asked Questions, VAT
The VAT threshold is the maximum amount of VAT-taxable turnover your business can earn in any rolling 12-month period before you are legally required to register for VAT. As of 1st April 2024, the threshold is £90,000. HMRC has confirmed this figure will remain...
by Pi Accountancy | Oct 31, 2024 | Advisory and Resources, Business, Regulations and Schemes
When you sell or close your business, the profits you make may be subject to Capital Gains Tax (CGT). This tax can significantly reduce your final earnings. Business Asset Disposal Relief (BADR) helps lower that burden by allowing eligible business owners to pay a...
by Pi Accountancy | Oct 30, 2024 | The Budget
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...
by Pi Accountancy | Oct 29, 2024 | Advisory and Resources, Business, Self-Employment and SMEs
Deferred Income is money a business receives before they deliver goods or services. This happens when a customer pays upfront, but the business still owes them something. Because of this, the payment does not count as earned income immediately. Instead, accountants...
by Pi Accountancy | Oct 24, 2024 | The Budget
Back in the Spring Budget 2024, the government announced the abolition of the Furnished Holiday Let (FHL) Tax Regime. Now, as of April 2025, the abolition has fully come into effect. From this date, HMRC will treat all income from these types of properties under the...
by Pi Accountancy | Oct 23, 2024 | Advisory and Resources, Business, Frequently Asked Questions, Software
A Trial Balance is a financial report that lists all account balances from the general ledger. Businesses usually prepare this report at the end of an accounting period. This may happen monthly, quarterly or annually. The report helps confirm that the double-entry...
by Pi Accountancy | Oct 17, 2024 | Frequently Asked Questions
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...
by Pi Accountancy | Oct 16, 2024 | Advisory and Resources, Frequently Asked Questions, Taxes
A financial year end marks the conclusion of a 12-month period used by businesses to track, report and assess their financial activity. It is the point at which businesses stop recording income and expenses for the year and begin preparing their financial statements....
by Pi Accountancy | Oct 15, 2024 | Frequently Asked Questions
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...
by Pi Accountancy | Oct 10, 2024 | Frequently Asked Questions
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,...
by Pi Accountancy | Oct 9, 2024 | Frequently Asked Questions
What is Liquidity? Liquidity measures how easily an asset converts into cash without losing value. Consider cash the most liquid asset because you can use it immediately for purchases or paying bills. On the other hand, assets like property or collectibles may take...
by Pi Accountancy | Oct 8, 2024 | Frequently Asked Questions
What are Fixed Assets? Businesses purchase fixed assets as long-term assets for continuous use. Businesses do not intend to resell or convert them into cash quickly. Instead, they support the business over several years. Examples of fixed assets include: Buildings:...
by Pi Accountancy | Oct 3, 2024 | Frequently Asked Questions
What is a Liability? A liability is a debt or obligation a company must settle. This can be in the form of money, goods, or services. You should record liabilities on the right side of the balance sheet; which includes loans, accounts payable, mortgages, deferred...
by Pi Accountancy | Oct 1, 2024 | HMRC
The Employment (Allocation of Tips) Act From 1st October 2024, millions of workers across the UK will see a boost to their earnings, thanks to the Employment (Allocation of Tips) Act. This new law has been put in place to allow workers to keep 100% of their tips,...
by Pi Accountancy | Oct 1, 2024 | Frequently Asked Questions
What are Current Assets? Current Assets (CA) are short-term resources that a business owns and expects to convert to cash or use up within one year. Current assets appear first on a company’s balance sheet under the Assets section and support the daily...
by Pi Accountancy | Sep 26, 2024 | Frequently Asked Questions
What is Cash Accounting? Cash accounting, also called cash-basis, is a method of recording income and expenses based on when money actually enters or leaves your business account. This means you record a payment only when you receive it, and an expense only when you...
by Pi Accountancy | Sep 25, 2024 | Frequently Asked Questions
What is Accrual Accounting? Accrual accounting is a method of recording financial transactions when they happen, rather than when money changes hands. This approach helps businesses gain a more accurate picture of their financial health by tracking income and expenses...
by Pi Accountancy | Sep 19, 2024 | Advisory and Resources, Frequently Asked Questions, Self-Employment and SMEs, Taxes
Income Tax is a tax you pay on the money you earn. The government collects this tax through HMRC. The money collected supports public services such as the NHS and education. However, not all income is taxable. What Counts as Taxable Income? You pay Income Tax on a...
by Pi Accountancy | Sep 17, 2024 | Advisory and Resources, Business, Frequently Asked Questions, Taxes
Capital Gains Tax (CGT) applies when you make a profit after you sell or dispose of an asset. However, CGT only applies to the gain, not the total amount you receive. For example: You buy a painting for £5,000. Later you sell it for £25,000. You have made a £20,000...
