Rent a Room Scheme

Rent a Room Scheme

You can earn up to £7,500 per year tax-free from letting out furnished accommodation in your home, via the Rent a Room scheme Although the name suggests renting a single room, you can actually rent out as much of your home as you’d like. If you share the income with...
Businesses could face unexpected tax bills because of CJRS

Businesses could face unexpected tax bills because of CJRS

Have you set money aside to deal with tax on support grants? HMRC has highlighted that all money paid for test and trace or self-isolation payments in England, Scotland or Wales are taxable, as are Coronavirus Statutory Sick Pay Rebates. The Coronavirus Business...
Help if you are struggling to pay your tax bill

Help if you are struggling to pay your tax bill

Financially, 2021 has been a difficult year for many, and you may be struggling to pay your January tax bill in full. Any tax and National Insurance that remains unpaid for 2020/21 must be paid by 31 January 2022, along with the first payment on account for 2021/22....
File your 2020/21 tax return by 31 January 2022

File your 2020/21 tax return by 31 January 2022

If you need to file a self-assessment tax return for the year to 5 April 2021, you have until midnight on 31 January 2022 to file your return if you have not already done so. You must also pay any tax that you owe for 2020/21 by the same date. Do I need to file a...
New Making Tax Digital (MTD) timetable

New Making Tax Digital (MTD) timetable

Making Tax Digital (MTD) is a Government initiative that aims to provide the UK with one of the most digitally advanced tax administrations in the world. Under MTD, taxpayers are required to keep electronic records and report to HMRC digitally. The new MTD timetable...
Annual Investment Allowance (AIA) Transitional Limit Extended

Annual Investment Allowance (AIA) Transitional Limit Extended

Annual Investment Allowance (AIA) transitional limit extended The Annual Investment Allowance (AIA) is a capital allowance that enables you to claim an immediate deduction against your profits for qualifying capital expenditure up to the available limit. The AIA limit...
Budget Highlights 2021

Budget Highlights 2021

The Chancellor presented his Autumn Budget and Spending Review on 27 October 2021 and we’re here to discuss some of the highlights. Income tax rates and thresholds The rates and thresholds applying for 2022/23 were confirmed. Personal allowance As previously...
Extension of Making Tax Digital for VAT

Extension of Making Tax Digital for VAT

Extension of Making Tax Digital for VAT Making Tax Digital (MTD) for VAT is currently only compulsory for VAT-registered businesses whose turnover for VAT is above the VAT registration limit of £85,000. However, this is set to change from April 2022. Extension to all...
End of the Coronavirus Job Retention Scheme (CJRS)

End of the Coronavirus Job Retention Scheme (CJRS)

The Coronavirus Job Retention Scheme (CJRS) came to an end on 30 September 2021. The scheme has provided financial help to employers and employees during the COVID-19 pandemic, allowing employers to claim grants with which to pay furloughed and flexibly furloughed...
Plan ahead for increases in the dividend tax rates

Plan ahead for increases in the dividend tax rates

As part of the Government’s funding strategy for health and social care, the dividend tax rates are to be increased from April 2022, alongside the temporary increases in National Insurance, and, from April 2023, the introduction of the Health and Social Care Levy. The...
Reclaiming SSP for periods of self-isolation

Reclaiming SSP for periods of self-isolation

The recent ‘pingdemic’ has resulted in large numbers of employees self-isolating. Where an employee meets the qualifying conditions, you must pay them SSP while they are self-isolating. As qualifying periods of self-isolation count as a Coronavirus-absence, if you are...

What is a UTR?

Unique Taxpayers Reference A UTR is your Unique Taxpayers Reference Number, is what identifies you personally with HMRC. It’s 10 digits in length and is quoted on any correspondence you receive from HMRC, including: Your tax return A Welcome to Self-Assessment letter...
3 QuickBooks Basics

3 QuickBooks Basics

Whether you’re brand new to QuickBooks or you use it already, there’s always more to learn to ensure you’re maximising the resources you have available to you. With this blog we are sharing our top 3 QuickBooks Basics. 1. Connecting and reconnecting the bank When you...
Accessing the Government Gateway

Accessing the Government Gateway

From 15 June 2021, all businesses and organisations will need multi-factor authentication in order to sign into the Government Gateway. Multi-factor authentication Businesses and organisations that use HMRC’s online services and which do not currently receive an...
Voluntary Class 2 NICs where 2019/20 tax return filed after 31 January 2021

Voluntary Class 2 NICs where 2019/20 tax return filed after 31 January 2021

If you are self-employed, you will pay Class 2 and Class 4 National Insurance contributions if your profits exceed the relevant thresholds. Class 2 National Insurance contributions are the mechanism by which you build up qualifying years to earn entitlement to the...
Paying CJRS grants back

Paying CJRS grants back

As the Coronavirus Job Retention Scheme (CJRS) enters its final months, now is the time to review grants that you have claimed under the scheme, and pay back any amounts claimed in error. You may also choose to repay voluntarily funding that you have received under...
New lower temporary SDLT threshold

New lower temporary SDLT threshold

The residential stamp duty land tax (SDLT) threshold applying in England and Northern Ireland was temporarily increased to £500,000 from 8 July 2020 to 30 June 2021 (extended from the original end date of 31 March 2021). From 1 July 2021 to 30 September 2021, a new...
Extended carry-back for losses

Extended carry-back for losses

To help businesses which have suffered losses as a result of the COVID-19 pandemic, the period for which certain trading losses can be carried back is extended from one year to three years. The extended carry-back period applies for both income tax and corporation tax...
How long do you need to keep your records for?

How long do you need to keep your records for?

Business records if you’re self-employed You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. HM Revenue and Customs (HMRC) may check your records to make sure you’re paying the right amount of tax....
Family companies and the optimal salary for 2021/22

Family companies and the optimal salary for 2021/22

If you run your business as a personal or family company, you will need to decide how best to extract profits for your personal use. A typical tax-efficient strategy is to pay yourself a small salary and then extract any further profits as dividends. Where this...
Garden Office At Home

Garden Office At Home

As more people are now working from home, the desire for a designated workspace has become a priority for many. The past year has forced many workers to fill up the dining table and any other flat surface available with monitors, computers, laptops, cables, Wi-Fi...
Thresholds and allowances frozen until April 2026

Thresholds and allowances frozen until April 2026

Thresholds and allowances frozen! To help meet some of the costs of the COVID-19 pandemic, the Chancellor has opted to freeze various allowances and thresholds until April 2026, rather than increase the rates of income tax and capital gains tax. As incomes rise over...
Gift Aid warning

Gift Aid warning

If you are a taxpayer and you make a Gift Aid declaration when making a donation to a charity, the charity can reclaim basic rate tax on your donation. Tax relief on the donation A donation made under Gift Aid is treated as being made net of the basic rate of tax,...
Corporation Tax Increase

Corporation Tax Increase

Corporation tax increase from April 2023 The main rate of corporation tax is due to increase to 25% for the financial year 2023, starting on 1 April 2023. However, companies with profits of £50,000 or less will continue to pay corporation tax at the current rate of...