Starting on 6 April 2026 self-employed earners will become liable for Making Tax Digital (MTD) for the first time. HMRC is implementing Making Tax Digital to overhaul the self-assessment tax reporting system. Phase 1 begins at the start of the next tax year on 6 April 2026. Are You Ready for the Rollout of Making Tax Digital in April 2026? The scheme requires tax to...
In an effort to crack down on undeclared income, HMRC has launched a targeted campaign aimed at persons with significant control (PSC) who may have failed to disclose all their earnings. This initiative serves as a wake-up call for individuals who have not been forthcoming about their income and serves as a reminder of the importance of tax compliance. Understanding the implications of being a...
In an effort to improve transparency and compliance within the business sector, Companies House has implemented stricter rules regarding registered office addresses. Failure to adhere to these regulations can result in fines of up to £1,000. It is crucial for companies to understand the implications of these changes and take the necessary steps to ensure compliance. Understanding the ‘Appropriate Address’ Requirement The newly enacted regulations...
Inheritance tax can be complicated and subject to lots of misunderstanding and mistakes. Furthermore the topic can even be controversial and occasionally even inflammatory. However, as with all forms of tax, it’s vitally important to understand the fundamentals, especially when it applies to you. We have put together a simple, easy-to-understand guide to UK inheritance tax. Inheritance Tax – How Does It Work Inheritance tax...
Income tax is collected by the government, from your personal income, to pay for public services including but not limited to education, welfare and the NHS. Most personal income is subject to tax including earnings from employment, self-employment, some benefits and pensions, rental income and returns from savings and investments, over certain thresholds. Why do we Pay Income Tax? Income tax is one of the...
National Insurance Contributions (NICs) are a type of tax paid upon earnings for employees and the self-employed. NICs are the UK’s second largest tax revenue source, after Income Tax. NICs are only paid by those who earn over the tax threshold annually. What are NICs? The majority of revenue from NICs is generated by employer contributions. Followed by employee contributions. Class 2 and 4 NICs...
The self assessment (SA) threshold for taxpayers taxed through PAYE only, is rising to £150,000, from the 2023/24 tax year onwards. Changes to Self Assessment Tax Threshold This increase in the Self Assessment (SA) threshold was first announced in May 2023. The threshold for the 2022/23 tax year, which many taxpayers and accountants are currently preparing, remains unchanged at £100,000. Which means that people who...
VAT (value added tax), is a surcharge applied to most goods and services. Both large and small businesses can reclaim VAT on business expenses provided you are registered for VAT. The process of accounting and how to claim back VAT can become time-consuming, however very worthwhile due to the economic benefit. Here’s how it works. How to Claim Back VAT as a Small Business You...
VAT is one of the most essential components of business tax to get right. It can pose challenges in terms of accounting. It can also affect your profitability. So getting the best tax advice for your small business is about more than simply maintaining compliance with HMRC, it is a fundamental element of managing all small businesses successfully. Getting the Best VAT Advice for Your...
The Government has announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be mandated to start from April 2026, instead of April 2024. The government recognises that businesses and self-employed individuals alike are facing a challenging economic environment, and that the forthcoming transition to MTD for ITSA for the self-employed and small landlords represents a significant change for taxpayers,...
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