Category Archives: HMRC

Could You Be Due a Christmas Bonus from HMRC?

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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preparing for a tax inspectionThe most wonderful time of the year could be made even more wonderful for some with a Christmas bonus from HMRC. Millions of workers across the UK that work in the service industry and are paid through PAYE could be eligible to claim tax rebates on their expenses.

Find out more about the eligibility criteria and how to check if you can claim the bonus in time for Christmas.

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Reversal of Plan to Scrap Class 2 NICs – What It Means for the Self Employed

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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Vibrant overvew of london image

The Government’s plan to abolish Class 2 NICs by April 2019 has been shelved, with no chance of the abolishment of Class 2 NICs taking place during this parliament.

The planned move, which could have benefited self-employed workers earning more than £6,205 per annum, was dropped under the premise that lower earning self-employed workers would have seen their voluntary payments increase significantly.

Find out more about the change, the current rates of National Insurance for the self-employed and how you can ensure you’re paying the correct National Insurance Contributions (NICs).

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A Landlord’s Guide to the HMRC Let Property Campaign

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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Whether you are a landlord of a large property portfolio, or you just let a single property to a tenant; you must pay tax on your rental income.

The ‘Let Property Campaign’, is a Government initiative that was launched in 2013 with the aim of giving landlords the opportunity to get their taxes up to date through voluntary disclosure.

As the campaign launched, it was estimated that 1 in 3 landlords were not declaring rental income.

Find out more about the Let Property Campaign and how it affects you as a landlord.

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

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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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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Changes To The Flat Rate VAT Scheme Explained

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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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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HMRC Crack Down On Entrepreneurs Relief Claims On Cessation Of Business

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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HMRC have been dealing with a lot of cases challenging Entrepreneurs Relief claims on ‘Phoenix Companies’. The practice of ‘Phoenixing’ involves Directors setting up a company for a contract, then subsequently closing it down when the contract ends enabling them to claim ER tax on the business assets above the Capital Gains Tax allowance.

The directors then open up another company when they get a new contract and repeat the process. Unfortunately, poor advice has led some company Directors to carry out this practice without being aware of the negative light it is seen in by UK Company Law or for UK Tax.

In this blog, we look at ‘phoenixing’ and the new targeted anti-avoidance rules (TAAR) set in place to prevent people taking advantage of this practice and thus benefiting from lower tax rates.

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Business Owners – Are You Prepared For Digital Tax?

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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HMRC rolling out digital taxIf you’re a business owner, you should be aware of the big changes coming to the tax system –
with the HMRC aiming for a completely digital tax system by 2020.

This change is designed to make it quicker and easier for businesses and individuals to manage their taxes. The switch will require business owners to change their approach to tax slightly, with the biggest difference being the quarterly updating of their details to HMRC.

In this blog, we will cover what the changes to the tax system will mean for businesses, and what you can do as a business owner to ensure you are prepared for digital tax.

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Capital Gains Tax For The Self Employed, Sole Traders and Business Partnerships Explained

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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capital gains tax for businessIf you’re planning on selling part or all of your business then you will need to be aware of

Capital Gains Tax (CGT). This is a tax paid on the profit made when selling a business as a whole or any business asset by those who are self-employed, sole traders or in a business partnership.

Find out the current rates of Capital Gains Tax and what it means when selling part or all of your business:

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Considering Selling Or Investing In a 2nd Property? – Finance Act 2016 Change Explained

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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Under the Finance Act 2016, there is a new tax law that affects those selling their second properties after 5th July 2016. This law also affects overseas investors by making them pay UK tax on their UK properties they have sold, but not lived in.

In addition to this, the change has affected buy-to-let investors that aren’t investing in property as a trade but do occasional property investing. Find out more about these changes and what they mean for you:

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Making Tax Digital: HMRC Aim For Digital Tax System By 2020

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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HMRC rolling out digital taxFollowing the March 2015 budget, the government pledged to make fundamental changes to the way the tax system works – moving to a fully digital tax system for individuals and small businesses by 2020.

The goal of the digital tax system is to create a more effective and efficient system that’s easier to use; allowing HMRC to keep better track of people’s income and reduce administration costs for businesses.

Find out more about the change to a digital tax system, and how it will affect you.

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