Marriage Allowance

HMRC is having the drive to encourage people to claim the marriage allowance.  Introduced in 2015, the marriage allowance enables one partner in a married couple or civil partnership to transfer part of their personal allowance to the other partner. It is worth claiming if one partner is not able to use all of their […]

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annual investment allowance

Annual Investment Allowance (AIA)

Capital allowances can be claimed when a business buys assets to be used in the business. As the asset is used for business purpose and would lose its value for wear & tear, therefore, the value of the asset can be deducted from profits before paying tax. However, there are different rules for different assets […]

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limited-company

How can I Change My Business Service Address?

Are you running your business, and want to officially register it as a Limited Company? The registrar of all the UK businesses; “Companies House” requires you to provide a service address of each of the director, PSC, secretary and member of the company (Ltd, LLP). This address is part of the public information and available […]

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bookkeeping-and-accounting

Bookkeeper vs. Accountant – Who’s Right for Your Business?

What is bookkeeping and accounting for business services? What is their role? What is the difference between the two terms? And which one is right for your business? If you are a business owner, regardless of the type of your business, you must have either encountered, are encountering, or will soon encounter these questions in […]

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A Brief Introduction of UK Taxation System

UK government collects revenues mainly from: Income tax, National Insurance contributions, Value added tax (VAT), and Corporation tax. Income Tax An income tax is a tax that governments impose on income generated by individuals or entities i.e. wages, salaries, commissions, dividends, interests, rents etc. Income Tax year starts from 6 April and ends on 5 […]

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VAT margin schemes

VAT margin schemes tax the difference between what you paid for an item and what you sold it for, rather than the full selling price. You pay VAT at 16.67% (one-sixth) on the difference. You can choose to use a margin scheme when you sell: ● Second-hand goods ● Works of art ● Antiques ● Collectors’ items You […]

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Contractors – Tax Deductible Expenses as a – What You Can Claim

When you are a freelance contractor you will incur certain costs. Some of these can be claimed before taxes are applied – i.e. they are ‘tax deductible’. It is therefore important that as a contractor, you know what counts as a valid expense, so you can keep your tax bill as low as possible.The rule […]

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Contractors – PAYE and National Insurance

Income tax and National Insurance contributions, or NICs, are payable on the salary that you pay yourself out of your limited company’s turnover. It is common for contractors who are not caught by IR35 to pay themselves a very low salary (e.g. minimum wage) to keep income tax and NICs to a minimum, taking the […]

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Contractors – Tax on Dividends

Most contractors operating a limited company will pay themselves a mixture of a salary and dividends, as this allows them to make considerable tax savings. Dividends are payments made to the shareholders of a company – which, in the case of your limited company, generally means you alone.Dividends themselves are not tax-free; they qualify as […]

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Accounting and Taxation for Contractors

The Tax Liability of a contractor selling their services through a limited company falls into three areas: Corporation Tax; Tax Payable On Dividends; And PAYE/National Insurance. Corporation Tax The most important tax liability that applies to limited companies is Corporation Tax. This is a levy on your company’s profits, that is to say the money […]

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