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...
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,...
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...
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...
What is Salary Sacrifice?

What is Salary Sacrifice?

What is Salary Sacrifice? Salary Sacrifice is an agreement between an employer and an employee, where the employee agrees to receive a reduced salary in exchange for certain non-cash benefits. The Benefits of Salary Sacrifice One of the key attractions of salary...
What Business Expenses can I Deduct?

What Business Expenses can I Deduct?

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...