Background In 2022, a B2B furniture wholesaler based in the UK acquired a going concern, significantly expanding their business operations. By late 2023, the company realised the need for a robust accounting system to manage their financial transactions and reporting. They approached us to set up new accounting software, reconcile a backlog of transactions, and […]
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As your bookkeeper, it’s essential to understand how earning over £100,000 in a tax year affects your personal allowance and what strategies can be employed to mitigate the impact. Personal Allowance Reduction If your adjusted net income exceeds £100,000, your personal allowance decreases by £1 for every £2 over this threshold, regardless of your age.
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As your bookkeeper, it’s essential to understand which expenses are tax allowable, as these can significantly reduce your taxable profit. General Rules for Allowable Expenses You can claim expenses for items you would typically use for less than two years, such as stationery and office sundries. Additionally, costs like rent, rates, power, and insurance are
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As a bookkeeper, it’s important to help clients navigate the self-assessment tax system effectively. Self-assessment taxpayers typically pay their income tax liabilities in three instalments each year. Here’s a breakdown of how these payments work: Payment Schedule 1. First Payment on Account: Due on 31 January during the tax year 2. Second Payment on Account:
The government is exploring the introduction of a new VAT relief aimed at incentivising businesses to donate everyday items to charities without incurring VAT liabilities. This proposed relief seeks to encourage donations of essential goods to charitable organisations, ultimately supporting those in need across the country. Currently, under existing rules, businesses are exempt from paying
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HMRC (Her Majesty’s Revenue and Customs) has recently updated its guidance to assist taxpayers in verifying the authenticity of communications claiming to be from HMRC. This initiative aims to safeguard taxpayers from falling victim to scams orchestrated by fraudsters seeking to obtain confidential or personal information. The updated guidance includes a comprehensive list of recent
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Companies House has recently announced the implementation of new powers aimed at enhancing the accuracy and integrity of company names registered in the UK. These measures are part of ongoing efforts to combat fraud and ensure transparency in the business environment. The updated controls on company names include several key provisions: 1. Enhanced Rejection Criteria
Understanding the off payroll working rules, also known as IR35, is crucial for individuals and businesses involved in providing services through intermediaries like personal service companies (PSCs). These rules come into play when a worker, using their own intermediary, would be considered an employee if they were providing services directly to the client. Typically, the
Background A business consultant in the UK started their venture in 2022, focusing on building their client base and establishing their business. However, like many new entrepreneurs, they found it challenging to keep their accounting up to date while managing day-to-day operations. By January 2024, they recognised the need for professional bookkeeping assistance and approached
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Understanding your tax code is essential for ensuring you’re receiving the right tax allowances and deductions. The letters in your tax code signify your entitlement to the annual tax-free personal allowance and help your employer calculate how much tax to deduct from your pay packet. For the current and upcoming tax year, the basic personal