The Personal Allowance is the amount of income you can earn each tax year before paying Income Tax. For the 2024/25 tax year, the standard Personal Allowance is £12,570. This means you do not have to pay tax on income up to this threshold. However, your Personal...
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....
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? 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...
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? 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? 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...
Corporation Tax is a tax on company profits, payable to HMRC. Unlike Income Tax, businesses do not receive a bill for Corporation Tax. Instead, they must calculate, report and pay it themselves. It applies to: Limited companies Foreign companies with a UK branch or...
What is Double Entry Bookkeeping? Double Entry Bookkeeping is an accounting technique that records each financial transaction twice – once as a debit in one account and once as a credit in another. This method bases itself on the accounting equation: Assets =...
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...
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? 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 are small gifts or perks 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 voucher. It isn’t...
Dividends are payments that limited companies distribute to their shareholders from their profits. If a company makes a profit after covering all expenses and taxes, it can choose to share some of that profit with its shareholders. These payments provide shareholders...
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? 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...
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....
Double Cab Pick Ups Before the legal and political debates, Double Cab Pick Ups (DCPUs) were widely classified as “goods vehicles” for tax purposes. This classification provided the following benefits: Capital Allowances – Businesses could deduct a...
Spring Budget 2024 In the Spring Budget 2024, Chancellor Jeremy Hunt made several key announcements that could have significant implications for individuals and businesses across the UK. Here’s a breakdown of the main points and what they might mean for you. Taxation...
The 2023 Autumn Statement brings substantial financial changes that effects everyone from employees and employers to pensioners. This is Pi Accountancy’s overview geared to unpack the key sections that could affect our clients. Read the full documentation here:...
What Business Expenses can I Deduct? As a business owner (or small business owner) in the UK, you are allowed to deduct certain business expenses from your taxable income, reducing your overall tax bill. However it is important to note that not all expenses are...
Owner’s Equity Owner’s equity, also know as shareholders’ equity, represents the residual interest in the assets of a company after deducting it’s liabilities. In real words, it is the portion of a company’s assets that belongs to the...
Happy New Tax Year! As of today, the new UK tax year has officially started. It’s time to get your finances in order, review your tax code and start planning for the year ahead. Whether you’re self-employed, employed or a business owner, this is the...
The ISA Allowance has been frozen for 2023/24 The annual Investment Savings Account (ISA) allowance has been frozen once again for the 2023/24 tax year. By freezing it again, the allowance is being left at £20,000 for every individual – However there will be an...
