The tax season can be a daunting time for small business owners, but with some preparation, it doesn’t have to be. Organising your financial records in advance can really help you save time and reduce stress. Here’s a short guide to help you get your books in order, for a hassle-free tax season… Keep Accurate […]
As a small business owner, preparing for tax season can be a stressful time, especially when you are also managing the day-to-day operations. The good news is that with a little forward planning and organisation, tax season doesn’t have to be stressful. We’ve seen first-hand how proactive preparation can make a huge difference for small
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:
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 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
Dividends received are subject to taxation as income, although the applied tax rates differ from the formal Income Tax rates. Additionally, individuals can receive dividends up to the annual tax-free dividend allowance. The annual dividend allowance for the tax year 2023-24 is £1,000. The prevailing tax rates for dividends received (beyond the dividend tax allowance)
Most self-employed individuals are liable for two types of National Insurance contributions (NICs): Class 2 NICs and Class 4 NICs. Class 2 NICs apply to all self-employed taxpayers unless their earnings fall below the Small Profits Threshold (SPT), currently set at £6,725, which exempts them from NIC payments. As of the 2023-24 tax year, Class