Health professionals providing medical services may be exempt from VAT if their work falls within their registered profession and primarily protects, maintains, or restores health. HMRC outlines specific exempt services, including diagnosis and treatment.
The VAT liability of goods and services provided by registered health, medical, and paramedical professionals, can be a complex area of tax ... read more The Bank of England’s Monetary Policy Committee (MPC) met on 5 February and in a 7-2 vote decided to reduce interest rates by 25 basis points to 4.5%. The two remaining members voted to reduce the rate further to 4.25%. This was the third interest rate cut since August 2024.
This means that the late payment interest rate applied to the main taxes and duties that HMRC charges interest will be ... read more Separation and divorce can create tax implications, particularly Capital Gains Tax (CGT) on asset transfers. New rules from April 2023 extend the ‘no gain/no loss’ period, helping spouses manage tax efficiently. Private Residence Relief may also apply.
When a couple separate or divorce, their focus is typically directed towards the emotional and practical aspects of the process. However, it is ... read more Tax on rental income from jointly owned property depends on ownership shares, unless part of a partnership. Married couples default to a 50/50 split unless they notify HMRC of a different income allocation based on actual ownership proportions.
When property is jointly owned with one or more individuals, the taxation of rental income depends on whether the rental activity is considered a ... read more If you use a company car for private travel, it's taxed as a Benefit in Kind (BIK). The tax rate depends on the car’s list price and CO2 emissions—low-emission vehicles get tax breaks. Use HMRC’s online tool to check and update your company car tax details.
If you are provided with a company car that has private use (including commuting), it is considered a "benefit in kind" (BIK) ... read more The Construction Industry Scheme (CIS) requires contractors to deduct tax from subcontractor payments and file monthly returns with HMRC. Even if no payments are made, nil returns must be submitted to avoid penalties.
The CIS is a specialised set of rules governing tax and national insurance for individuals working within the construction industry. This scheme specifically applies to businesses ... read more The Employment Appeal Tribunal slashed a £10,000 award for injury to feeling by 80% after an original tribunal ruling was deemed not to be Meek compliant as it failed to provide adequate reasons for the quantum awarded. A Miss Graham was employed by Eddie Stobart Ltd. for just over ten months as a planner when she became pregnant and immediately notified her line manager. Miss Graham asserted her ... read more Stopping future payments from being made on your debit or credit card is crucial for avoiding unwanted charges and managing your finances effectively. Here’s how you can do it:
The first step is to contact the company taking the payments. Request that they cancel the recurring charge and provide confirmation in writing or via email.
If the merchant refuses to stop the payments, you can contact ... read more Before extending credit to new customers, it’s essential to assess their financial reliability. Checking their creditworthiness helps protect your business from potential losses and late payments. Here’s how to do it:
Start by requesting basic financial information from the customer, including company details, trading history, and references from suppliers. Established businesses should be able ... read more From 1 February 2025, alcohol duty on draught pints has been cut for the first time in a decade, saving drinkers 1p per pint. Small breweries also benefit from tax relief. However, duty on non-draught alcohol has risen with inflation, impacting bottled and canned drinks.
Small alcohol duty cuts on draught pints came into effect on 1 February 2025. This change was announced as part of last year’s ... read more Not sure if your hobby is actually a taxable trade? HMRC uses ‘badges of trade’ to assess whether an activity is a business. Factors like profit motive, transaction frequency, and asset changes help determine if tax rules apply to your earnings.
The 'badges of trade' tests, although not definitive, serve as important tools for HMRC in determining whether an activity constitutes a legitimate ... read more Over 11.5 million people met the 31 January 2025 self-assessment deadline, but 1.1 million taxpayers missed it. If you're one of them, expect a £100 penalty. Learn about late fees and HMRC’s payment plan options to avoid further charges.
There are an estimated 1.1 million taxpayers that missed the deadline. Are you among those that missed the 31 January 2025 filing deadline for your 2023-24 ... read more Umbrella companies offer an easy way for freelancers and contractors to get paid without running a limited company. They handle payroll and tax via PAYE, ensuring compliance and employment rights. But are they the right choice for you? Consider the pros and cons.
Essentially, an umbrella company acts as an intermediary between the worker and the end client (or recruitment agency), handling ... read more Private pensions can be a great way to pass on wealth, but tax implications depend on the age of the deceased and the type of pension. Some beneficiaries may receive funds tax-free, while others could face significant tax charges. Knowing the rules is essential.
Private pensions can be an effective means of passing on wealth, but it is crucial to consider the potential tax implications when ... read more When someone dies, their personal representative (executor or administrator) must value their estate to determine if Inheritance Tax (IHT) is due. This involves assessing assets, debts, and handling tax obligations throughout the estate’s administration period.
In order to ascertain whether or not IHT is due, the personal representative (an executor or administrator) of the deceased must value ... read more 1 March 2025 - Due date for Corporation Tax due for the year ended 31 May 2024.
2 March 2025 - Self-Assessment tax for 2023-24 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2025, or an agreement has been reached with HMRC under their time to pay facility by the same date.
19 March 2025 - PAYE and NIC deductions due for month ended 5 March 2025 (If you ... read more Expanding into international markets can be a game-changer for UK small businesses, opening up new revenue streams and increasing business resilience. With the right knowledge and support, even small firms can successfully sell their products and services abroad. The UK government offers various resources to help businesses navigate the complexities of exporting.
Why Exporting Matters for Small ... read more Cash flow is the backbone of any small business, yet late payments continue to be a major challenge for entrepreneurs across the UK. According to the Federation of Small Businesses (FSB), around 50,000 businesses close annually due to cash flow problems caused by overdue invoices. To help combat this issue, the UK government has set up the Small Business Commissioner (SBC) to support businesses in ... read more From 6 April 2025, new thresholds for student loan repayments will take effect, impacting borrowers across the UK. Whether you're on Plan 1, Plan 2, Plan 4, or repaying a postgraduate loan, here’s a breakdown of the latest changes and what they mean for you.
Student loans are a key component of the government’s financial assistance package for individuals pursuing higher education in the United ... read more Big changes are here for the self-employed! From 2024-25, profits must align with the tax year, replacing the old "current year basis." Overlap relief is ending, and transition profits will be spread over five years. Here’s how the new system affects your tax bill.
The reform to the self-employed tax basis period has introduced significant changes in how trading income is allocated to ... read more If you are moving goods across borders, an EORI number may be essential for customs clearance. Whether trading with the EU, Northern Ireland, or beyond, knowing which type you need—GB, XI, or EU—can save time and hassle. Here’s what you need to know.
The EORI number is required for the following situations:
Moving goods between Great Britain (England, Scotland, and Wales) or the ... read more Your tax code determines how much tax is deducted from your pay. While 1257L is the most common, different letters and numbers can affect how much you owe. From marriage allowance to emergency codes, here’s how to decode what HMRC assigns you.
Your tax code is basically a set of letters and numbers that show whether you are entitled to the annual tax-free personal allowance (the amount you can ... read more From 6 April 2025, the remittance basis of taxation will be scrapped in favour of a residence-based system. A new 4-year Foreign Income and Gains regime offers tax relief for new arrivals, while transitional measures aim to ease the shift. Here’s what’s changing.
Effective from 6 April 2025, the remittance basis of taxation for non-UK domiciled individuals will be replaced by a simplified, ... read more From 6 April 2025, employers will face a 1.2% rise in National Insurance contributions, alongside a lower NICs threshold. However, an increased Employment Allowance aims to ease the burden for small businesses. Here’s what you need to prepare for these key changes.
The main rate of secondary Class 1 NICs will rise by 1.2%, from 13.8% to 15%. This increase will also apply to the employer rates for ... read more In a significant move to enhance trust in online reviews, Google has agreed to implement substantial changes to combat fake reviews, following an investigation by the UK's Competition and Markets Authority (CMA). This initiative aims to ensure consumers can rely on genuine feedback when making purchasing decisions.
Background
The CMA launched an investigation into Google over concerns that it ... read more The UK government offers a robust safety net for savers through the Financial Services Compensation Scheme (FSCS). This scheme is designed to protect individuals, small businesses, and charities if a bank, building society, or credit union fails, ensuring greater financial security and peace of mind.
How the Scheme Works
The FSCS guarantees deposits of up to £85,000 per person, per authorised ... read more The Employment Appeal Tribunal (EAT) upheld claims of constructive dismissal and disability discrimination against Whyte & Mackay Limited (W&ML) in the case of Mr. Duployen , a former forklift truck and warehouse operator, following his termination.
W&ML had appealed the ET's decision on several grounds, seeking reinstatement or re-engagement, a higher award for injury to feelings, ... read more Business Asset Rollover Relief allows you to defer Capital Gains Tax (CGT) when reinvesting proceeds from selling business assets. By rolling gains into the cost of new assets, tax is postponed until the new asset is sold. Learn how this relief can optimise your business investments.
Rolling over capital gains is a useful way to defer CGT when you sell or dispose of business assets.
Essentially, ... read more Unpaid debts can put a limited company at risk of a winding-up petition, potentially leading to liquidation. Creditors may act via court judgments or statutory demands, forcing companies to settle debts. Learn how this process works and the consequences for the business.
A limited company that has unpaid debts, beyond their normal agreed payment terms, can face a precarious future. The people or ... read more Businesses can reclaim VAT on pre-registration expenses if they relate to taxable supplies made after VAT registration. The rules differ for goods and services, with time limits of 4 years for goods and 6 months for services. Proper understanding ensures you don't miss out.
VAT can only be reclaimed if the pre-registration costs relate to taxable goods or services that will be supplied by the ... read more The 2023 Revaluation updates business property rateable values, based on April 2021 valuations. While challenges are open until March 2026, beware of false claims about earlier deadlines and unscrupulous agents pushing for quick decisions or upfront payments.
The Valuation Office Agency (VOA) periodically reassesses the rateable values of business properties through a process known as ... read more Owning more than one property? You can claim Capital Gains Tax (CGT) relief on just one at a time. By formally electing your main residence within two years of property changes, you can optimise your CGT exemption and make the most of key tax benefits.
Taxpayers who own more than one property should be aware of a number of important considerations. An individual, married couple, or civil ... read more Gift Aid transforms charitable donations by allowing charities and CASCs to claim 25p extra for every £1 given—at no additional cost to you. Higher and additional rate taxpayers can also claim valuable tax relief, making giving even more rewarding.
Higher and additional rate taxpayers can claim tax relief on the difference between the basic rate of tax and their highest rate. This can be ... read more Navigating financial challenges can be daunting, but understanding the tools available can make a significant difference. One such tool is a Debt Management Plan (DMP), designed to help individuals regain control over their finances.
What is a Debt Management Plan?
A DMP is an informal agreement between you and your creditors to repay your non-priority, unsecured debts at an affordable rate. ... read more Making a significant investment in new equipment can be a transformative step for a business, improving efficiency, productivity, and competitiveness. However, such a decision requires careful planning and analysis to ensure the investment aligns with the business's long-term goals.
1. Cost and Financing
The upfront cost of new equipment can be substantial, so businesses must assess their ... read more HMRC reports over 63,000 taxpayers filed their returns over the New Year, but 5.4 million still need to act before the looming 31 January 2025 deadline. File now to avoid penalties, pay your 2023-24 tax, and set up payment plans if needed to stay compliant.
The deadline for submitting your 2023-24 self-assessment tax return online is fast approaching—31 January 2025. This date is not just ... read more Selling online? Whether it’s a hobby or a business, you may need to pay tax if your earnings exceed £1,000. From services to content creation, it’s vital to understand self-assessment rules and new reporting obligations for online platforms starting in 2024.
If you are selling anything through an online marketplace, it is important to know that you might be liable to pay tax, whether it is your ... read more A significant amount of online information about companies is available to the public on the Companies House website. The information available through Companies House can be an important resource for anyone looking to research a company. What makes this particularly valuable is that a significant portion of the data is freely available to the public.
The range of publicly available information ... read more Beneficial loans, where employees benefit from cheap or interest-free loans from their employer, can trigger tax implications. However, certain exemptions, like loans under £10,000 or qualifying loans, eliminate the need for employers to report or pay tax on them.
An employee can receive a benefit when they are provided with a loan from their employer that is either cheap or interest-free. The ... read more Employers can voluntarily register to report and account for tax on certain benefits and expenses via the RTI system before the start of the tax year. This process, known as payrolling, eliminates the need to submit P11D forms for the selected benefits at the end of the tax year.
The deadline for submitting P11D, P11D(b), and P9D forms for the 2024-25 tax year is 6 July 2025. These forms can be ... read more Inheritance Tax (IHT) impacts estates over £325,000, with rates of 40% on death and 20% on certain gifts. A 36% reduced rate applies if 10% of the estate is left to charity. Executors must value estates and may need to file tax returns for the deceased and their estate.
The current IHT nil rate band is £325,000 per person, below which no IHT is payable. This is the amount that can be passed on ... read more A recent case [London United Busways Ltd. (LUB) v De Marchi and Abellio London [2024] EAT 191] revealed the complexities of working under the Transfer of Undertakings (Protection of Employment) Regulations 2006, or TUPE.
A Mr. De Marchi had been working as a bus driver for two decades by LUB from his local bus depot, even though his contract contained a clause to the effect that employees may be ... read more The UK government has unveiled a series of proposals aimed at curbing exploitative practices in the ticket resale market, seeking to protect consumers from exorbitant prices and enhance transparency in ticket sales.
Key Proposals:
Capping Resale Prices: The government is considering implementing a cap on ticket resale prices, potentially limiting them to the original face value or allowing a ... read more The UK's Competition and Markets Authority (CMA) has initiated its new digital markets competition regime, effective from January 1, 2025, following the Digital Markets, Competition and Consumers Act's Royal Assent in May 2024.
Strategic Market Status (SMS) Designations
Under this regime, the CMA can designate firms with "Strategic Market Status" (SMS) concerning specific digital ... read more The 31 January 2025 deadline for self-assessment tax returns is fast approaching. Avoid penalties and last-minute stress by filing your return and paying any tax due promptly. Don’t forget, first-time filers need to register for HMRC’s online service without delay.
You should also be aware that payment of any tax due should also be made by this date. This includes the remaining self-assessment ... read more Misplaced your National Insurance number? Do not worry! From checking payslips to using the HMRC app, there are many ways to recover it. If all else fails, you can request it via post. Here is everything you need to know to locate or apply for your NI number.
Firstly, you could try and locate the number on paperwork such as your tax return, payslip or P60. You can also use your personal tax ... read more Are you a landlord? Maximise your rental income by knowing which expenses you can claim to reduce your tax bill. From maintenance costs to Replacement of Domestic Item Relief, understanding allowable deductions is key to smart property management.
If you are a landlord, it is important to be aware of the expenses that can and cannot be claimed from rental income. As a general rule, allowable ... read more Planning to sell your business or shares? Capital Gains Tax rates for Business Asset Disposal Relief (BADR) are set to rise from 10% to 14% on 6 April 2025, and to 18% from 6 April 2026. Selling before these dates could result in significant tax savings.
Business Asset Disposal Relief (BADR) applies to the sale of a business, shares in a trading company, or an individual’s interest in a trading ... read more Great news for businesses! Tax relief on zero-emission cars and EV charge points has been extended until 2026. This move aligns with the UK’s ambitious Zero Emission Vehicle mandate, driving the shift to sustainable transport.
It was announced as part of the recent Autumn Budget measures that the tax relief for businesses acquiring zero-emission cars or installing electric vehicle charge points ... read more Selling goods or services? It’s vital to know if HMRC considers this a business. From regular sales to earning commissions, their rules on ‘trading’ impact your tax obligations. Here’s a simple guide to help you stay compliant and avoid pitfalls.
If you are selling goods or services, you need to determine whether this constitutes a business. According to HMRC’s guidance, you are required to ... read more The average number of touchpoints needed to secure a sale, or appointment generally falls between 7 and 12. However, this varies by industry, target audience, and product or service type. Here’s why multiple touchpoints are necessary and how they work:
Why Multiple Touchpoints Are Necessary
Building Trust: Buyers need to trust the seller, and trust develops over time through consistent and ... read more The Chancellor’s Spring Statement, scheduled for 26 March 2025, is expected to focus on navigating the challenges of public finances, economic growth, and household pressures.
Economic Context
The UK economy is forecast to grow by 2% in 2025, though inflation is projected to remain above the Bank of England's 2% target for several more years. This economic backdrop follows significant tax ... read more The cash basis is now the default for self-employed income reporting. Learn about the key updates, opt-out options, and how this simplified method can ease your self-assessment obligations with HMRC.
The cash basis is used by sole traders and other unincorporated businesses to determine their income and expenses for self-assessment. This simplified method can ease record-keeping and income ... read more Capital Gains Tax rates have increased for disposals from 30 October 2024, with further changes ahead. Stay informed on the updated rates for assets, property, and reliefs to optimise your tax planning.
We would like to remind our readers of the updated Capital Gains Tax (CGT) rates that apply to gains realised on or after 30 October 2024. The main CGT rates for assets other than residential ... read more Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn what steps to take for private use and specific exemptions.
Here are the steps you need to follow to inform HMRC if you make any cars available for private use by company directors or employees. Private use of a car includes employees’ journeys between home and work, unless they ... read more Advisory fuel rates for company cars help employers and employees manage fuel costs without triggering tax liabilities. Learn how to use these rates to avoid tax, especially car fuel benefit charges.
HMRC's fuel rates also known as advisory fuel rates are intended to reflect average fuel costs and are updated quarterly. These rates only apply to employees using a company car.
The rates can be ... read more Inheritance Tax nil-rate bands remain frozen until April 2030. Learn how this affects estates, the residence nil-rate band, and planning opportunities to maximise tax-free inheritance for loved ones.
The Inheritance Tax (IHT) nil-rate bands have been frozen for a number of years and had been set to remain at current levels until 5 April 2028. As part of the Budget measures, it was confirmed that ... read more From April 2026, Making Tax Digital for Income Tax (MTD for ITSA) will transform tax compliance for businesses, self-employed individuals, and landlords, mandating digital record-keeping and online submissions. Get prepared!
The mandatory signup for Making Tax Digital (MTD) for Income Tax is set to commence from April 2026. MTD for ITSA will fundamentally change the way relevant businesses, the ... read more The UK government has recently addressed the Parliamentary and Health Service Ombudsman's (PHSO) report concerning the communication of changes to women's State Pension age. The PHSO identified maladministration by the Department for Work and Pensions (DWP) due to a 28-month delay in informing women born in the 1950s about these changes. In response, the government has acknowledged this finding ... read more The economic outlook for the UK in 2025 presents a mixed picture, with expectations of modest growth tempered by persistent inflationary pressures.
Growth Projections
The Organisation for Economic Co-operation and Development (OECD) has revised its forecast for UK economic growth in 2025 upward to 1.7%, citing increased government spending as a key driver.
This adjustment reflects the UK's ... read more 1 February 2025 - Due date for Corporation Tax payable for the year ended 30 April 2024.
19 February 2025 - PAYE and NIC deductions due for month ended 5 February 2025. (If you pay your tax electronically the due date is 22 February 2025)
19 February 2025 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2025.
19 February 2025 - CIS tax deducted for the month ended ... read more Over one million parents have now claimed Child Benefit online or via the HMRC app, with 87% of new claims using this speedy service. If you've recently had a baby or a child joins your family, applying online ensures you get support quickly—right when you need it most.
HMRC’s Director General for Customer Services, said:
"Having a baby is a busy and expensive time but claiming Child ... read more Can’t pay your tax bill in full by 31 January 2025? HMRC’s online Time to Pay system lets self-assessment taxpayers spread the cost over monthly instalments. With plans available for tax bills up to £30,000, this flexible option can help you avoid late payment penalties.
Those eligible for the self-serve option can arrange payments online without needing to contact an HMRC adviser. HMRC has ... read more Navigating tax obligations can be daunting for small business owners and sole traders. To make life easier, HMRC has introduced new interactive tools, including a Sole Trader Setup Guide and VAT Registration Estimator, helping businesses understand taxes step by step.
The new resources include:
Sole Trader Setup Guide: A step-by-step guide to help people who are self-employed understand when ... read more Reclaiming VAT on company cars isn’t as simple as it sounds. Generally, businesses can’t recover VAT unless the car is used exclusively for business purposes. But there are exceptions—like taxis, driving schools, and commercial vehicles. Here’s what you need to know.
There are complex VAT rules that determine how much VAT can be reclaimed when buying a new car. Generally, businesses cannot ... read more For companies selling shares, the Substantial Shareholdings Exemption (SSE) can mean significant tax relief. Introduced in 2002 and simplified in 2017, this exemption allows qualifying gains on share disposals to go untaxed—provided key conditions are met.
The SSE regime provides that a gain on a disposal by a company of shares (or an interest in shares, or certain assets related to shares) ... read more Navigating VAT in the construction industry can feel like untangling scaffolding. Enter the VAT reverse charge—special rules that mean sub-contractors no longer charge VAT on services but contractors handle the tax instead. Here's how it works and who it affects.
There are special VAT reverse charge rules that can apply to certain construction businesses. When these rules apply, the supply ... read more The UK government has announced significant reforms to enhance compensation for customers affected by water service failures. Under new regulations, water companies will be mandated to increase compensation payments for issues such as supply interruptions, sewer flooding, and low water pressure.
These changes mark the first substantial update to compensation rates since 2000. For instance, ... read more Intellectual property (IP) refers to creations of the mind, such as inventions, literary works, designs, brand names, and artistic outputs. Whether you are a business owner, inventor, writer, or entrepreneur, protecting your intellectual property is essential for several compelling reasons.
Encourages Innovation and Creativity
Protecting IP incentivises individuals and businesses to invest in ... read more A restaurant in Middlesborough recently challenged a civil penalty notice of £15,000 issued by the Secretary of State for the Home Department under Section 15 of the Immigration Asylum and Nationality Act 2006 (IANA 2006) arguing that their employee was lawfully present in the UK and that they were not given the opportunity to mitigate the penalty.
However, the Court emphasised that the 2006 ... read more Scotland’s 2024 Budget delivers on public priorities with investments in services, poverty reduction, and economic growth. Tax rates stay frozen, but bands shift to protect low incomes. A hopeful step forward for Scotland’s future!
Scotland’s Deputy First Minister and Finance Secretary, Shona Robison delivered her second Budget statement to the Scottish parliament on 4 December 2024.
The Finance ... read more Selling online? From 2024, digital platforms must report your information to HMRC if sales exceed £1,700 or 30 goods a year. Casual sellers are exempt, but regular traders may need to register for Self-Assessment.
New rules, which became effective from 1 January 2024, require digital platform operators in the UK to collect and verify information about sellers on their platforms. The first reports ... read more Scammers are on the rise as the Self-Assessment deadline nears! HMRC warns that HMRC never emails or texts about tax refunds. Stay alert, report suspicious contacts, and protect your money from fraudsters.
Fraudsters are increasingly targeting taxpayers with scam emails as the deadline for submitting self-assessment returns for the 2023-24 tax year approaches. Between November 2023 and October ... read more Married couples and civil partners may be able to pass on up to £1 million of their estate tax-free with the Residence Nil Rate Band. Claiming this transferable allowance could secure your family home for future generations. Make sure your estate planning takes this into account.
The Residence Nil Rate Band (RNRB) for Inheritance Tax is a transferable allowance available to married couples and ... read more Could you save up to £1,260 in tax this year? If one of you earns less than £12,570, the Marriage Allowance lets couples transfer unused personal allowances. Don't miss out on this easy tax break!
The Marriage Allowance applies to married couples and civil partners where one partner does not pay tax or does not pay tax above the basic rate threshold for Income Tax (i.e., one partner must earn ... read more From April 2024, UK businesses can access enhanced R&D tax relief through the merged RDEC and new ERIS schemes. With generous deductions and credits for R&D-intensive projects, the schemes offer tailored support to fuel innovation and drive growth.
Research and Development (R&D) tax reliefs are designed to support UK companies engaged in innovative science and technology projects. As ... read more Small businesses across the UK can now access streamlined support and advice through the newly launched Business Growth Service, designed to simplify and enhance the way SMEs engage with government resources.
Simplifying Support for SMEs
Navigating government support has often been a challenge for small and medium-sized enterprises (SMEs). In 2023, only 26% of UK SME employers sought external ... read more Starting your own business is exciting but can be overwhelming if you’re not prepared. To help you navigate the journey, we’ve compiled a list of 10 key considerations that will set you up for success. Whether you’re launching a small business or a full-fledged enterprise, these steps will guide you toward building a solid foundation for your business dreams.
1. Define Your Business Idea
Before ... read more The letters in your tax code indicate whether you are entitled to the annual tax-free personal allowance. These codes are updated each year and help employers calculate how much tax should be deducted from your salary.
For the current and upcoming tax year, the basic personal allowance is £12,570. The tax code corresponding to this amount is 1257L, which is the most common tax code used for those ... read more If you have lost or forgotten your National Insurance number, there are several ways to retrieve it.
You can find your National Insurance number:
On a document you already possess, such as a P60, payslip, or letters regarding benefits.
In your personal tax account.
In the HMRC app.
In your Apple or Google Wallet (if you have previously saved it there).
You can also download a letter ... read more The VAT Flat Rate Scheme allows businesses to pay VAT as a fixed percentage of their total turnover, which includes VAT. The applicable percentage varies based on the business type. This scheme is designed to simplify VAT accounting, thereby reducing the administrative burden associated with VAT compliance.
The scheme is open to businesses that expect their annual taxable turnover in the next 12 ... read more A new rule aimed at preventing individuals from using companies to avoid taxes through the Transfer of Assets Abroad (ToAA) provisions applies to income arising to persons abroad on and after 6 April 2024.
This change affects UK residents who own or have a financial interest in UK resident close companies or non-resident companies that would be close if they were resident in the UK. Affected ... read more It is important to take the necessary steps to protect your land and property from fraud.
You are at a higher risk if:
Your identity has been stolen
You rent out your property
You live abroad
The property is empty
The property is not mortgaged
The property is not registered with HM Land Registry
HM Land Registry offers a free property alert service to help protect against fraud. This ... read more One of the most commonly used and valuable exemptions from Capital Gains Tax (CGT) is for the sale of a family home. Generally, there is no CGT on a property that has been used as your main family residence. However, an investment property that has never been used as your main home will not qualify. This relief is known as Private Residence Relief (PRR).
The rules change if you live abroad. Since ... read more A tribunal recently ruled on the failure of a private limited company, El Recruitment Ltd., to submit its Re-DOC before the statutory deadline as required under the 'Employer Duties' of the Pensions Act 2008. The Pensions Regulator had sent two prior letters, although the company failed to do so and received a compliance notice addressed to the registered office address which was considered ... read more 1 January 2025 - Due date for Corporation Tax due for the year ended 31 March 2024
19 January 2025 - PAYE and NIC deductions due for month ended 5 January 2025. (If you pay your tax electronically the due date is 22 January 2025).
19 January 2025 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2025.
19 January 2025 - CIS tax deducted for the month ended 5 January ... read more Fuel margins of retailers - the difference between what a retailer pays for its fuel and what it sells at - remain around the high levels seen during the CMA’s road fuel market study.
Supermarket fuel margins increased over the May to August 2024 period, up from 7.0% in April to 8.1% in August. Non-supermarket fuel margins also increased from 7.8% in April to 10.2% in August.
The sustained ... read more The upcoming increase in Employers’ National Insurance Contributions (NICs) is set to have significant repercussions for UK businesses. Employers’ NICs are essentially a tax on wages, paid by businesses as a percentage of their employees’ earnings above a certain threshold. Any increase to this rate affects the cost of employment, which in turn has a ripple effect on the broader economy. Below, we ... read more When approaching the VAT registration threshold there are important matters to consider. The VAT registration threshold is the point at which businesses must register for VAT with HMRC.
A business must register for VAT if:
their total VAT taxable turnover for the previous 12 months is more than £90,000 - known as the ‘VAT threshold’;
they expect their turnover to go over the £90,000 VAT ... read more The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion. Participation in the campaign is open to all residential property landlords with undisclosed taxes. ... read more There are specific rules regarding the liability to Inheritance Tax (IHT) on gifts made during a person's lifetime. In most cases, gifts made during a person’s life are not taxed at the time they are given.
These lifetime gifts are referred to as "potentially exempt transfers" (PETs). The gift becomes exempt from IHT if the giver survives for more than seven years after making the ... read more There are special rules in place for taxpayers who make gifts of land and buildings to charity. This can include Income Tax and Capital Gains Tax (CGT) relief provided all the necessary conditions are met. There are also reliefs available where taxpayers sell a property to a charity for less than its market value. Tax relief may also be available if a lease is granted to a charity that is ... read more The rate of Capital Gains Tax (CGT) for Investors’ Relief will rise from 10% to 14% for disposals made on or after 6 April 2025. It will then increase further to 18% for disposals made on or after 6 April 2026. Additionally, the lifetime limit for Investors' Relief has been reduced from £10 million to £1 million for qualifying disposals occurring on or after 30 October 2024.
Investors’ Relief ... read more To calculate your Council Tax, you need to know the following:
The valuation band of your property in England, Wales, or Scotland
The amount your local council charges for that band
Whether you qualify for a discount or exemption from the full bill
If you are on a low income or receive benefits, you may be eligible for Council Tax Reduction (formerly known as Council Tax Benefit).
Your ... read more EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It's a widely used financial metric that provides a measure of a company's operating performance, excluding the effects of financing, accounting, and tax decisions. By focusing on earnings from core operations, EBITDA offers a clearer view of a company’s profitability and cash-generating potential.
Why is EBITDA ... read more According to the Office for National Statistics as of October 2024, the primary concerns among individuals in the UK are:
National Health Service (NHS): 85% of adults identified the NHS as a significant issue, reflecting widespread apprehension about healthcare services.
Cost of Living: 84% of respondents highlighted the cost of living as a major concern, indicating ongoing financial pressures ... read more The mandatory rollout of Making Tax Digital (MTD) for Income Tax is set to begin in April 2026. MTD for ITSA will bring substantial changes to how businesses, self-employed individuals, and landlords interact with HMRC. The system will require them to register, file, pay, and update their details through an online tax account.
To prepare for the launch of MTD for Income Tax in April 2026, it is ... read more Securing funding for a new startup is one of the most critical steps in ensuring the success of a business venture. However, obtaining financing can often be challenging. For instance, traditional bank loans may not always be an option, or they might require security conditions like a personal guarantee.
One alternative is the government-backed Start Up Loan scheme, which offers personal loans to ... read more The 18% and 28% Capital Gains Tax (CGT) rates currently applied to carried interest gains remain unchanged for the current tax year. This charge applies to individuals who provide investment management services to funds and receive carried interest on which they are liable to pay CGT.
However, as announced in the recent Budget, these CGT rates will increase to a single, unified rate of 32% ... read more As part of the Autumn 2024 Budget measures, the government introduced new anti-avoidance provisions to prevent the abuse of the existing close company anti-avoidance rule. The measure will have effect for any tax avoidance arrangements falling within the scope of the announcements that are made on or after 30 October 2024.
The government has said they are introducing this new measure as they have ... read moreHealth services exempt from VAT
Cut in interest rates
Tax when transferring assets during divorce proceedings
Jointly owned property – no partnership
Check or update company car tax details
CIS monthly returns obligations
Not all hurt feelings are uncapped & costly
How to Stop Future Payments on Your Debit or Credit Card
How to Check the Creditworthiness of New Customers
Small duty cuts on draught products from 1 February 2025
When is a hobby a business
31 January deadline met by more than 11.5 million people
How umbrella companies work
Tax on inherited private pension pots
Tax chores if managing a deceased person’s estate
Tax Diary March/April 2025
A Small Business Guide to Exporting and International Trade
Late Payment Support for Small Businesses – How to Protect Your Cash Flow
Student and postgraduate loan thresholds and rates
Self-employed must report profits on tax year basis
Who needs to register for an EORI number
How to check your tax code
Reforms to taxation of non-doms from April 2025
Reminder of Employer’s NIC changes from April 25
Google to Tackle Fake Reviews Following CMA Investigation
Understanding the UK’s Bank Deposit Guarantee Scheme
It is not always possible to mend fences – Reinstatement is not always a practicable option where there is a breakdown in employment relations
Rolling over capital gains
Dealing with company unpaid debts
Claiming VAT on pre-registration purchases
Beware false business rates warnings
Designating a property as your main residence
How donations to charity can provide tax relief
Debt Management Plan
Investing in new equipment for your business?
Penalties for late filing of tax returns
Selling online and paying tax
Online information about a company
Tax-exempt employee loans
Payrolling employee benefits
Tax return for deceased person
Beware the legal minefield of the transferring of contractual undertakings
Ticket touts’ days are numbered
Roll-out of new digital markets regime
Last month to file 2023-24 tax return
Finding your National Insurance number
What expenses can be claimed against rental income
Future increases in CGT on sale of a business
Tax relief for zero emission cars and electric charge points
Is your trade in goods or services a business
Perseverance is the key to sales success
What to Expect from the Chancellor’s Spring Statement 2025
Cash-basis default position for self-employed
Capital Gains Tax – the new rates
Advising HMRC of employees’ company car details
Using the car fuel rates
Inheritance Tax thresholds and the RNRB
Making Tax Digital for Income Tax volunteers
WASPI claims – apology but no compensation
The UK economic outlook for 2025
Tax Diary February/March 2025
Claiming Child Benefits online
Spreading tax payments by using Time to Pay
New online tax tools for the self-employed
When can you recover VAT on a car purchase
The Substantial Shareholdings Exemption
VAT Reverse Charge in Construction: What You Need to Know
Government Forces Water Companies to Double Compensation
Why Protecting Intellectual Property is Important
Just because an employee is a lawful resident of the UK does not give them the right to work
Scottish Budget Statement 2025-26
No tax changes for online sellers
Self-assessment scam warning
IHT nil rate band reduction for large estates
Are you eligible to claim the Marriage Allowance?
Could you claim R&D relief?
Government Unlocks Success for Small Businesses
Launch Your Dream Business: 10 Must-Know Steps
How to interpret your tax code
Apply for or locate a National Insurance number
VAT Flat Rate Scheme overview
Transfers of assets abroad
Protect your land and property from fraud
Tax if you live abroad and sell UK home
When it comes to pensions, it is of paramount importance to Re-DOC on time!
Tax Diary January/February 2025
Fuel prices report by Competition and Markets Authority (CMA)
The Likely Effects of Employers’ NIC Increases in 2025
Approaching the VAT registration threshold
Landlords with undeclared Income
Seven year rule still applies – IHT PETs
Gifts of land and buildings to charities
Changes to CGT Investors’ Relief
How Council Tax is calculated
What does EBITDA stand for?
What are your concerns?
Making Tax Digital – the next step
Applying for business start-up loans
Changes to rates of tax on carried interest
Close company anti-avoidance measure