Category: BNW Accountants

Overview of Making Tax Digital for Tax Returns and VAT

Overview of Making Tax Digital for Tax Returns and VAT

Making Tax Digital (MTD) is an initiative of the UK government that it took in 2015. It characterizes transformation to the way in which taxpayers record their financial transactions and submit their tax returns online. According to HM Revenue and Customs (HMRC), MTD is intended to make management easier, effective, and efficient for all taxpayers […]

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Self-Assessment Tax Return – Penalties

Self-Assessment Tax Return – 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 for collecting income tax. How to […]

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Tax Returns Claim on Assets - Annual Investment Allowance (AIA) Method

Tax Returns Claim on Assets – Annual Investment Allowance (AIA) Method

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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Company Tax Return

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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margin scheme vat

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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Corporation Tax Return

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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margin scheme VAT

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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Company Tax Return

Penalties for Landlords

Reporting to HMRC When you start renting out property, you must tell HMRC and you may have to pay tax. If you don’t, you could be charged a penalty. You must report income from property rental if you receive:   £2,500 or more from property after deducting allowable expenses £10,000 or more from property before […]

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Self Assessment Tax Return Penalties

There are tax penalties for both late filing of Self-Assessment (SA) tax returns and for late payment of tax due under SA. The late filing penalty system changed for returns and payments from the 2010/11 year onwards.   A key feature of the new regime is that the late filing penalty is not reduced if […]

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