by Pi Accountancy | Mar 6, 2025 | Taxes
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....
by Pi Accountancy | Feb 6, 2025 | Advisory and Resources, HMRC, Regulations and Schemes, Taxes
If you cannot pay your tax bill in full, a Time to Pay arrangement allows you to spread your tax bill into manageable monthly instalments. While interest still applies, you can avoid further late payment penalties once HMRC agrees to the plan and you keep to it. What...
by Pi Accountancy | Feb 4, 2025 | Advisory and Resources, Business, Frequently Asked Questions, Taxes
If you run a business, the “Wholly and Exclusively” rule determines whether you can deduct an expense from your taxable profits. To qualify for tax relief, you must incur the expense Wholly and Exclusively for the purposes of your trade. In practical...
by Pi Accountancy | Jan 30, 2025 | Self Assessment
A Simple Assessment is a tax calculation HMRC sends you when you owe tax they cannot collect automatically through the PAYE (Pay As You Earn) system. Instead of requiring you to submit a full Self Assessment tax return, HMRC calculates how much you owe and sends you a...
by Pi Accountancy | Jan 29, 2025 | Advisory and Resources, Self Assessment
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...
by Pi Accountancy | Jan 21, 2025 | Advisory and Resources, Self Assessment, Self-Employment and SMEs
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...
by Pi Accountancy | Jan 16, 2025 | Advisory and Resources, HMRC, Self Assessment, Taxes
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...
by Pi Accountancy | Jan 14, 2025 | Self Assessment
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...
by Pi Accountancy | Jan 8, 2025 | Advisory and Resources, Self Assessment
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...
by Pi Accountancy | Nov 21, 2024 | Advisory and Resources, Self Assessment
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...
by Pi Accountancy | Nov 13, 2024 | 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?...
by Pi Accountancy | Nov 12, 2024 | Director, Self Assessment
Many directors assume that filing limited company accounts and paying Corporation Tax covers everything. However, HMRC treats your personal income separately from your company’s tax affairs. As a result, Self Assessment often applies to company directors. Many...
by Pi Accountancy | Nov 8, 2024 | Advisory and Resources, VAT
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...
by Pi Accountancy | Nov 7, 2024 | Frequently Asked Questions, VAT
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...
by Pi Accountancy | Oct 16, 2024 | Advisory and Resources, Frequently Asked Questions, Taxes
A financial year end marks the conclusion of a 12-month period used by businesses to track, report and assess their financial activity. It is the point at which businesses stop recording income and expenses for the year and begin preparing their financial statements....
by Pi Accountancy | Sep 19, 2024 | Advisory and Resources, Frequently Asked Questions, Self-Employment and SMEs, Taxes
Income Tax is a tax you pay on the money you earn. The government collects this tax through HMRC. The money collected supports public services such as the NHS and education. However, not all income is taxable. What Counts as Taxable Income? You pay Income Tax on a...
by Pi Accountancy | Sep 17, 2024 | Advisory and Resources, Business, Frequently Asked Questions, Taxes
Capital Gains Tax (CGT) applies when you make a profit after you sell or dispose of an asset. However, CGT only applies to the gain, not the total amount you receive. For example: You buy a painting for £5,000. Later you sell it for £25,000. You have made a £20,000...
by Pi Accountancy | Aug 22, 2024 | Advisory and Resources, Frequently Asked Questions, Payroll and Employment, Taxes
A P45 is the document you receive when you leave a job. It provides a clear summary of your earnings and the tax you have paid during the current tax year. Your employer must provide this document when your employment ends. This applies whether you resign, retire or...
by Pi Accountancy | Aug 21, 2024 | Advisory and Resources, Frequently Asked Questions, PAYE, Payroll and Employment, Taxes
A P60 is an end-of-year tax summary. Your employer provides it after the tax year ends. The tax year runs from 6 April to 5 April. This document shows how much you earned and how much tax you paid. It brings together all important figures from the year in one place....
by Pi Accountancy | Jul 16, 2024 | Frequently Asked Questions, Self Assessment
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....
by Pi Accountancy | Jun 26, 2024 | Advisory and Resources, Corporation Tax, Frequently Asked Questions, Taxes
Corporation Tax is a tax that companies and certain organisations pay to HMRC on their profits. You calculate it for each accounting period, which usually matches your financial year. However, your first year can include more than one accounting period. Unlike many...
by Pi Accountancy | Jun 19, 2024 | Allowances, Taxes
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:...
by Pi Accountancy | Jun 12, 2024 | Taxes
Tax on Tips and Gratuities All tips and gratuities, whether received in cash directly from the customer or added electronically via card or cheque, are subject to Income Tax. Depending on how these tips are managed and distributed, National Insurance Contributions...
by Pi Accountancy | Jun 11, 2024 | Taxes
Child Benefit is valuable support for families raising children in the UK. However, if your income is above a certain threshold, you may need to repay some or all of it through the High Income Child Benefit Charge (HICBC). What is the High Income Child Benefit Charge?...
