HMRC Self Assessment Tax Returns Penalties

HMRC Self Assessment Tax Returns Penalties

As most of us know HM Revenue and Customs (HMRC) is UK’s Government department for dealing with the state taxes for all individuals & businesses, it collects the money paid by the UK public and assists targeted families and people with financial support. HMRC runs a system called Self Assessment tax return for collecting income […]

Read More
Marriage Allowance

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 […]

Read More
Tax Returns Claim on Annual Investment Allowance (AIA) Method

Tax Returns Claim on Annual Investment Allowance (AIA) Method

Capital allowance 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 and […]

Read More
How to Change Service Address for Limited Company Registration

How to Change Service Address for Limited Company Registration

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 […]

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

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

What is bookkeeping services 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 […]

Read More
A Brief Introduction of UK Taxation System

A Brief Introduction of UK Taxation System

Know about 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. The income Tax […]

Read More
VAT margin Schemes

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 can’t use a margin […]

Read More
Contractors - Tax Deductible Expenses as a - What You Can Claim

Accountant for Contractor Tax Deductible Expenses to Claim

When you are a freelance accountant for a 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 […]

Read More
Contractors - PAYE Accountants and National Insurance

Contractors – PAYE Accountants 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 […]

Read More
Contractor Accounting - Tax on Dividends

Contractor Accounting – Tax on Dividends

Most contractor accounting 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 […]

Read More