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...
There are certain circumstances when building work is subject to the lower VAT rate of 5%. Here we explain when and how to apply the 5% vat rate on building services. When to Apply the 5% VAT Rate on Building Services The lower rate applies in these cases – renovating residential property which has remained empty for over two years. Where a change in the...
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...
Property is a reliable way to invest, as long as your finances are expertly managed. To be successful, you need to hire the right buy to let accountant who is experienced with property investment with up-to-date knowledge of the property finance market. How to Hire the Right Buy to Let Accountant Hiring the right buy to let accountant is essential for anyone with rental properties,...
Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable mainly by companies that own UK residential property valued at over £500,000, to ensure property owners are paying stamp duty land tax (SDLT). What is the Annual Tax on Enveloped Dwellings? A dwelling is the classification of property if all or part of it is used, or could be used, as a residence. A...
The deadline for filing your Self Assessment tax return is 31 January. This means that the filing deadline for the tax year 2021-22 is 31 January 2023. If you haven’t already you will need to file your income and expenditure from self assessment with HMRC online, plus pay any tax that you owe for this period, by midnight on 31 January 2023. Self-Employed Tax Deadline...
Welcome to the October 2022 News Update from Prestige Business Management October 2022 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs. A lot has happened this month so some of our blogs may be out of date. We have done our best to update information everywhere it needs to be....
The newly appointed chancellor Jeremy Hunt, who replaces Kwasi Kwateng, has announced a number of changes to the mini-budget. Latest Mini-Budget Reforms On 17 October Mr Hunt announced a package of changes to the mini-budget, which was first announced by Mr Kwateng on 23 September. A fiscal statement is planned for 31 October. However this announcement was added ahead of schedule in an effort to...
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