Incorporation Relief is a valuable tax break that allows business owners to delay paying Capital Gains Tax when they transfer their business into a limited company. Rather than facing an immediate tax bill on the capital gain made at the time of transfer, the tax...
In April 2023, the UK Government introduced a tiered system for Corporation Tax, making it more flexible and supportive for businesses at different stages of growth. This also brought the reintroduction of the Small Profits Rate, which reduces the tax rate...
If you are self-employed or submit a Self Assessment tax return, you should be familiar with Payments on Account. These advance payments help spread the cost of your tax bill across the year, preventing one large lump sum. The Second Payment on Account is fast...
Submitting a VAT return can be overwhelming, especially if you are unsure what information to give to your accountant. Getting it right means that your return is accurate and compliant with HMRC regulations. What to Give Your Accountant for a VAT Return The documents...
If you run a business in the UK, you may need to become VAT registered at some point. You need to understand the VAT registration process to avoid penalties and make the most of potential benefits. Who Needs to Become VAT Registered? Businesses must register for VAT...
VAT (Value Added Tax) on food is often a confusing subject. The rules aren’t just black and white; they vary depending on the type of food, it’s preparation and even how people eat it. While most essential food items are zero-rate (no VAT), there are...
When it comes to taxes, most people are familiar with Stamp Duty Land Tax (SDLT) on property purchases. However, the lesser known Stamp Duty Reserve Tax (SDRT) applies to buying shares and securities electronically. What is Stamp Duty Reserve Tax? Stamp Duty Reserve...
If you are planning to buy property or land in England or Northern Ireland, you may need to pay Stamp Duty Land Tax (SDLT). This tax can significantly impact your overall budget. What is Stamp Duty Land Tax? Stamp Duty Land Tax is a tax that buyers must pay when...
If you are self-employed, run a business or receive income is not taxed through an employer’s payroll, you have likely come across the term “Unique Taxpayer Reference” or UTR number. While it might sound technical, understanding what a UTR number is,...
Marginal Relief helps businesses with moderate profits pay less Corporation Tax. However, if you own multiple businesses, the Marginal Relief rules change. By knowing the rules, you can save your company money and avoid unexpected tax bills. What is Marginal Relief?...
If you are a UK taxpayer, you will not have to pay tax on your lottery winnings. Whether you win a small sum or a jackpot, the entire amount is yours to keep. This applies to prizes won from the National Lottery, EuroMillions, scratch cards or any other legal lottery....
Betting on horse races is a cherished pastime in the UK. It also forms a significant part of the sports betting industry. The UK’s taxation system for horse race betting is simple and bettor-friendly. Unlike in some countries, punters do not have to worry about...
With the tax year ending on 5th April 2025, now is the time to review your finances and take advantage of tax-saving opportunities. You should take advantage of tax planning to reduce liabilities and benefit from tax reliefs before the 5th April 2025 deadline. 1....
A Simple Assessment is a tax calculation sent by HMRC. It applies to those who owe tax that cannot be collected automatically through the PAYE (Pay As You Earn) system. Instead of requiring you to submit a full Self Assessment tax return, HMRC calculates the tax you...
Self Assessment forms are used to report income, calculate taxes and claim reliefs. All those completing a tax return must complete the main form, SA100. Depending on your sources of income, you may also need to complete supplementary Self Assessment forms to provide...
HMRC uses Self Assessment to collect Income Tax from employed and self-employed individuals. Your employer will automatically deduct tax from your earnings, if they are employing you. However, as a self-employed individual, it is your responsibility to report your...
Whether it’s a simple typo or forgetting details, errors can slip through the cracks. When it comes to your tax return, these mistakes can feel monumental, especially after the deadline has passed. However, amending your tax return can be an option, depending on...
As the deadline for filing a Self Assessment tax return online fast approaches, HMRC is urging taxpayers to remain vigilant against scams. Scammers often take advantage of this time to target unsuspecting individuals with fake tax rebate offers or threats of...
For the 2023/24 tax year, the income threshold for filing a Self Assessment tax return has increased from £100,000 to £150,000 for taxpayers taxed solely through the PAYE (Pay As Your Earn) system. If your income through PAYE is below £150,000 and you do not meet any...
Filing your Self Assessment tax return on time can help you avoid penalties from HMRC. These penalties can quickly add up, leaving you with more stress than just paying your tax bill. What Happens if You File Your Tax Return Late If you miss the 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?...
Contrary to popular belief, directors do not automatically need to register for Self Assessment. The need to register largely depends on the nature of your income. If you are a director with untaxed income, such as dividends from shares in your own company, you need...
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...
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...
