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 […]
Understanding Tax Allowable Expenses For The Self-Employed Read More »
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
HMRC Updates Guidance To Help Identify Genuine Contacts Read More »
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
In the UK, directors are categorised as employees and are subject to National Insurance (NI) contributions on their annual income, including salary and bonuses, that exceeds the Primary Threshold. For the current 2023-24 tax year, the annual threshold is set at £12,570. Many directors who are also shareholders opt to receive a minimum salary and
From 1 April 2023, the corporation tax main rate will increase to 25% for companies with profits over £250,000. A Small Profits Rate (SPR) of 19% will also be introduced from the same date for companies with profits of up to £50,000 ensuring these companies pay Corporation Tax at the same rate as currently. Where
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