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 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 =...
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? 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? 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...
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? 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? 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...
