How can accountants help with VAT compliance in the UK?
In the intricate world of taxation, Value Added Tax (VAT) stands out as a pivotal component, and businesses operating in the UK are no strangers to its complexities. Navigating the VAT landscape requires a keen understanding of regulations, meticulous record-keeping, and a commitment to compliance....
April 10, 2024What was announced at the Budget Summary March 2024?
The Budget Summary for March 2024 stands as a pivotal moment, revealing the latest measures and initiatives set forth by policymakers to navigate the challenges and opportunities ahead. From taxation adjustments to investment strategies, this summary encapsulates the government's vision for economic resilience and growth.From key announcements to their potential impact on businesses and individuals alike, this comprehensive overview aims to shed light on the policies shaping our financial future...
March 15, 2024How is the tax worked out on a company car provided to a Director or Employee for a Limited Company?
If a Limited Company is providing a company car or fuel benefit for Directors or employees during the tax year 23/24 this is a Benefit In Kind and is taxable on the employee or Director who uses the vehicle....
February 26, 2024What was announced in the AUTUMN STATEMENT – 22 NOVEMBER 2023?
Significant points• Cuts to employee NICs take effect from 6 January 2024 and self-employed NICs from 6 April 2024• 100% first year allowances (‘full expensing’) for companies made ‘permanent’ (originally due to expire 31 March 2026)• Extension of the ‘cash basis’ of computing taxable profits for unincorporated businesses • No changes announced to Income Tax, Inheritance Tax or Stamp Duty Land Tax – all remain fixed at levels previously announced...
December 6, 2023Can I take money out of my sole trader bank account without paying further tax?
As a sole trader, you're not just the captain of your ship; you're also the navigator of your financial course. While the freedom and flexibility of being a sole trader can be exhilarating, it also comes with a host of responsibilities, including managing your finances and understanding the tax implications of your decisions.One question that often looms large in the minds of sole traders is, "Can I take money out of my sole trader bank account without incurring further taxes?”So, let's set sa...
November 6, 2023Can my limited company pay for gym membership for Directors & staff?
In the modern corporate landscape, employee well-being has taken centre stage as a pivotal factor in driving productivity, engagement, and overall success. As companies seek innovative ways to support their team's physical and mental health, the question arises: Can your limited company cover gym memberships for directors and staff? Providing a benefit in kind to Directors or staff is a great way to make them feel valued and appreciated. A limited company can provide a benefit in...
October 5, 2023Can I purchase an electric vehicle through my Limited Company?
In the era of sustainability and innovation, electric vehicles (EVs) have taken the automotive industry by storm. As individuals and businesses alike strive to reduce their carbon footprint and embrace cutting-edge technology. Whether you're a small startup or an established enterprise, understanding the intricacies of acquiring an EV under your company's name can bring forth financial, environmental, and operational advantages. A limited company can purchase an electric vehicle. ...
September 7, 2023Tax Free allowances for 06/04/2023 to 05/04/2024
Taxes are an inevitable part of our financial landscape, but did you know that there are legitimate ways to reduce your tax liability? Enter the realm of tax-free allowances, where you can uncover opportunities to save your hard-earned money within the bounds of the law. In this blog post, we'll take a deep dive into the world of tax-free allowances, from personal allowances to income tax bands, let's explore the smart path to keeping more of your money in your pocket.The below are the...
August 22, 2023What help is available to households, due to increased living costs for 2022?
With the ever-increasing cost of living in 2022, on 26/5/2022 the Chancellor announced grants for all households, to help with the increasing costs of heating homes. There will be different levels of help categorised as: Low-income householdsPensioner householdsDisability householdsAll households ...
May 27, 2022Tax Rates & Minimum Wage for 2022/2023
Minimum wage for 2022/2023 is dependent on the employees age: Age Rates from April 2022 23 and over £9.50 21 to 22 £9.18 18 to 20 £6.83 Under 18 &nbs...
April 4, 2022How do I add sales to Quickbooks if the customer has already paid me?
A sales invoice is the document you raise in bookkeeping when you are asking a client to pay you for your goods or services. Normally the sales invoice is raised and sent to your client, then your client pays you, and then you can mark the sales invoice as payment received. In some circumstances your customer might know your fee in advance and send the money to you before you have raised the sales invoice. In this case you can raise a sales receipt. A sales receipt is the...
October 9, 2021Changes to NI & Tax to cover Health and Social Care
From April 2022: The Prime Minister announced on 07/09/2021 there will be an increase in tax from April 2022 to cover the shortfall in funding for the NHS due to the pandemic, and to cover social care funding. As of April 2022, the extra tax will be as follows: 1.25% tax increase on employees national insurance1.25% tax increase on employers national insurance1.25% tax increase on class 4 self-employed national insurance1.25% increase on dividend tax For April 2022 to March 2023 working pe...
September 10, 2021What are the penalties for filing tax returns late?
Individual tax returns due by 31st January.Partnership tax returns due by 31st January.CT600 Corporation tax returns due 9 months and 1 day after the companies’ year end....
April 10, 2021What is the most tax efficient wage for a Director for 2021/2022?
Each year most people get an amount that you can earn tax free. For the year 6.4.2021 to 5.4.2022 this amount is £12570. A limited company does not get a tax-free amount it can earn, it pays corporation tax on all profit. Taking an income from a limited company purely as a dividend will mean you pay corporation tax on the entire amount. To claim some income tax free, it has to go through payroll as a Directors salary (Director remuneration)....
April 1, 2021How do I clear an overdrawn Directors’ loan account?
A Director/Shareholder might put money into their own limited company and then later they pay themselves back. This movement is shown in the accounts as money coming into the limited company as a loan from the Director, and then money going out of the limited company to pay the Director back. A Director/Shareholder earns income from the limited company by running some income through payroll, and then taking other income as a dividend. The payroll amount should be the most tax e...
March 27, 2021Work out if someone is self employed or should be on payroll.
If you appoint a contractor or subcontractor to work with you, and they are not genuinely self-employed, you can become liable for the tax and employers’ national insurance of that person. Simply registering with HMRC as self-employed Is not enough. HMRC will check if the way the person works is in line with being self-employed....
March 20, 2021Changes to IR35 off payroll working from 6th April 2021.
For medium and large sized businesses, (you meet 2 of the 3 conditions below to be a medium or large sized business): You have an annual turnover of more than £10.2 million.You have assets before deducting liabilities on your balance sheet of £5.1 million.You have more than 50 employees. You will need to complete a Status Determination Statement (SDS) for each subcontractor you appoint, to decide how the tax and national insurance is to be dealt with for the subcontractor. Is it the resp...
March 13, 2021Chancellor Budget announced on 03/03/2021 & Tax Rates 2021/2022
The furlough scheme was due to end in April 2021 but has now been extended to end of September 2021. Employees will continue getting 80% of salary for hours not worked, up to £2500 per month. The scheme will now close at the end of September 2021: Up to June 2021 Government pays 80% of hours not worked. July 2021 ...
March 3, 2021When will the January 2021 Covid 19 lockdown restrictions be lifted?
Following the announcement by the Prime minister on 22nd February 2021, a road map has been set out to start lifting the January 2021 Covid 19 lock down. Before announcing the road map, it was stated that 17.5 million people have been vaccinated to date. It was also stated that although restrictions hope to be eased, the easing would result in an increase in infections of the virus. However, the economy and mental well being of the population will not survive a much longer lock...
February 23, 2021What VAT rate is charged on renovating an empty residential property?
You may be able to charge 5% reduced rate vat if you are renovating empty residential premises if the property has not been lived in during the 2 years immediately before you start the renovation. The property must be a qualifying residential premises. The renovation or construction of a garage on the qualifying property can also qualify for the reduced rate of vat if the work is done at the same time as the property renovation, and the garage will only be used for residential purpos...
February 20, 2021What is the Construction Industry Domestic VAT reverse charge?
The Construction Industry Vat Reverse charge applies from 1 March 2021. The new rules mean customers account for the suppliers output VAT where domestic vat reverse charge applies. It applies to construction supplies made from one business to another business, that fall under CIS. It means the customer will no longer pay VAT on CIS supplies to the supplier but will stop the VAT and pay it directly to HMRC....
February 8, 2021What Support is Available to Businesses for the January 2021 Covid 19 lockdown?
The Chancellor made an announcement on 5th January 2021 that additional support would be available in the form of 1 off top up grants to help businesses who have to close due to lock down and are in the following sectors: Retail, Hospitality, Leisure The 1 off grants will be as follows: £4000 for a business with a rate-able value of £15000 or under£6000 for a business with a rate-able value between £15000 and £51000£9000 for a business with a rate-able value over £51000...
January 7, 2021How can I feel more in control with the Cash Flow in my business?
A cash flow projection is a table showing how much money, you project, will come in and go out of your business over the coming months. It is a guide that can help you make key business decisions....
December 19, 2020I Don’t Understand My Business Accounts
Business accounts are a vital tool that helps the Business stay on track and keep growing and moving forward. At the end of the business year a set of accounts is created to show the: Profit & Loss of the Business at the year-end Balance Sheet at the year-end Some Financial Notes explaining who the owners are...
December 12, 2020How do I save for Christmas?
Christmas is the most wonderful time of the year, but it can also be very stressful as you try to find time to run a business AND keep everything together for Christmas. It is one holiday that needs a Project Manager. There is also the cost of Christmas which can go into the thousands with presents, food, decorations etc. Below is a guide of how to save for Christmas, and how to take every step this year so you have a map for Christmas every year. Following th...
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