What Is National Insurance And Why Do I Pay It?

Working out your NIC'sIf you’re a worker or employee over 16 and earning above £157 per week, or are self-employed and generating a taxable profit in excess of £6,025 per year – you will pay National Insurance. The amount you pay depends on your employment status and how much you earn.

Find out more about National Insurance contributions, why you pay it and how much you pay.

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Making Tax Digital For Business Is Coming- Are You Ready?

How to prepare for digital tax If you are a business owner, you should be aware of the huge changes coming to the tax system.

HMRC are aiming for a completely digital tax system by 2020, with the first businesses having to comply with MTD legislation from April 2018.

Find out more about what digital tax is, who it affects and how you can ensure you are prepared for the change.

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Understanding Your Pay Slip – Tax Codes Explained

Money from a payslipIf you are an employee or worker, you will be on a PAYE (pay as you earn) tax system, meaning tax is deducted straight from your salary – unlike the self-employed, who have to calculate and pay their own tax.

For many, this ease of use means that tax codes and deducted earning are rarely checked, which could result in over taxation.

In this blog post, we’ll cover how to find your tax code, what it means and what to do if you think you are being over taxed.

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New Employment Status and Rights In The UK

freelancers working round a coffee tableA key employment case against taxi app company ‘Uber’ has resulted in their claims of their drivers being ‘self-employed’ being rejected, with Uber drivers now being classed as ‘workers’ as opposed to self-employed.

But what does this new employment status mean, what are rights are workers entitled to and what is the so-called ‘gig economy’ – find out in our blog, with a handy infographic showing the rights of employees, workers and the self-employed in the UK.

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Accountancy For Business – Outsource or In-House?

should you outsource your accounting or keep it in house?

For many businesses, a question they will face at some point as their business grows and becomes more complex is whether to keep their accountancy in-house or to outsource to an external accountant.

On one hand, an in-house accountant is likely to cost more but allows for better communication and quicker answers. On the other hand, outsourcing your accountancy gives you access to a team of experts and knowledge that an in-house accountant may not possess,  but it may slow down communications.

With so many different factors to consider, let’s take a look at the main benefits and pitfalls of both outsourced and in-house accountancy.

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National Insurance For The Self-Employed Explained

National Insurance Class 2 Notification LetterAs part of the Spring Budget, Philip Hammond announced that the main rate of National Insurance Contributions (NIC’s) for the self-employed would increase, with Class 2 NIC’s being abolished, and Class 4 NIC’s rising to 11% by April 2019.

Fortunately for the over 4.6 million Self Employed workers in the UK, the plan to hike NIC’s was scrapped. So, what is NI? What is it used for? And how much do the Self-Employed Pay?

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Spring Budget Updates: Small Business Will Have An Extra Year To Prepare For Digital Tax

What Should You Expect When Working With An AccountantAs part of the spring budget, the chancellor has pledged that small businesses and landlords that fall under the VAT threshold will have an extra year to prepare for MTD; this is considered great news for the 3.1 million small businesses that fall into this category.

The announcement comes after many small business owners voiced their concern about the digital tax timeframes, with many citing they would need to make substantial investments on administration, software and technology upgrades in order to be ready to switch on the MTD deadline. Find out more about these changes, and what they mean for small businesses and landlords.

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Choosing The Right Legal Structure For Your New Business 

choosing the right structure from your businessSo you’ve had your big idea, then after researching your business idea, determining your target market and sizing up your competition, you are ready to set up your business. But there is st
ill a long road ahead of you before you can consider your new business a success.

 In this blog post, we’ll cover a number of topics you need to consider before starting your business and things to be aware of when you begin trading.
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Changes To The Flat Rate VAT Scheme Explained

flat rate VAT tax scheme changes As part of the Autumn Statement, the government announced that from the 1st April 2017, flat rate VAT will be changing to a uniformed level of 16.5% for businesses that fall into the category of ‘limited cost businesses’. The current rates vary depending on the trade sector of the business but can be anything from 4% to the standard rate of 14.5%.

The flat rate tax scheme was introduced to help small businesses save time by simplifying the accounting process for VAT, making it easier to work out the VAT that they have to pay.

In this blog, we will look at why this change was made, important timescales and how this change will affect you.

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