The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be aware of the tax implications of the scheme. Under the Construction Industry Scheme, contractors are required to deduct […]
Whilst most businesses in the UK charge VAT at the standard rate of 20%, there are a number of different VAT rates and exemptions that businesses should be aware of. In the UK, there are three separate VAT rates, the standard rate @ 20%, reduced rate @ 5% and the zero rate @ 0%. HMRC has
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MTD for landlords will require the landlord to register, file, pay and update their information using an online tax account. The introduction of MTD for Income Tax Self-Assessment (ITSA) is not set to commence from April 2024. The rules will initially apply to taxpayers who file Income Tax Self-Assessment tax returns with business or property income
2016 was the first-time dividends tax allowance was introduced and it replaced the old dividend tax credit with an annual £5,000 dividend allowance. Tax was payable on dividends received over this amount. The tax-free dividend allowance was reduced to £2,000 with effect from 6 April 2018 and remains fixed at that level ever since. The
When running your business, you must ensure you are paying your staff the new National Minimum Wage (NMW) and National Living Wage (NLW) rates for the period 1 April 2022 – 31 March 2023. The NLW is the minimum hourly rate that must be paid to those aged 23 or over and this rate is
On Friday 23rd September, Chancellor Kwasi Kwarteng MP, shared the Conservative Government’s mini budget plans in the House of Commons, stating: People need to know help is coming and it is indeed coming Chancellor Kwasi Kwarteng MP You will find a summary below of the key points raised in the mini budget, including the topics of
Employment allowance is used to reduce an employer’s NIC liability. You can only claim against your employers’ Class 1 National Insurance liability up to a maximum of £5,000 each tax year. You can still claim the allowance if your liability was less than £5,000 a year. Are you eligible for employment allowance? You can claim
In the 2022 Spring Statement, a significant increase in the National Insurance Threshold from £9,880 to £12,570 was announced. This increase saw the alignment of the Primary Threshold (PT) for Class 1 NICs and Lower Profits Limit (LPL) for Class 4 NICs with the personal allowance of £12,570. This change was effective from 6 July
What is credit control and the importance of getting paid on time. Credit control is an important part of all businesses in order to avoid cash flow problems and ensure customers pay within your credit terms. Many businesses fail due to poor cash flow caused by payment delays and bad debts mounting up over time.
If you are a sole trader or property landlord change is on the way. Making Tax Digital (MTD) will become mandatory for not only VAT-registered businesses but sole traders and property landlords. Making Tax Digital for Income Tax Self-Assessment (ITSA) will apply to individuals from April 2024, if their total gross income from self-employment and