Tag: tax returns

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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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 […]

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Tax Penalties for Self Assessment Tax Returns

Tax Penalties for Self Assessment Tax Returns

There are tax penalties for  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 the tax is paid […]

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Capital Allowance – Things to know about it

Capital Allowance is basically a form of tax relief available to anyone incurring capital expenditure, buying, building or making adjustments to commercial property. Capital allowance let taxpayers write off the cost of certain capital assets against taxable income. They can be best thought of as a reduction in the purchase price of the assets. In […]

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Self Employed vs Limited Company

Self Employed vs Limited Company

Setting up as a sole trader is the simplest way to start a business. You only need to inform HMRC that you are working as ‘self-employed’, and account for your business activities through the annual self assessment tax process. Starting up in business as a limited company is a more complex process, and the financial […]

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