VAT Flat Rate Scheme – Is It Right for You?
The VAT flat rate scheme is designed to simplify VAT reporting for smaller VAT-registered businesses. Instead of calculating the difference between the VAT charged to customers and the VAT paid on business expenses, businesses in the scheme pay a fixed percentage of their VAT-inclusive turnover directly to HMRC. This percentage varies depending on the business…
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Tax Return Requirements for Wealthy PAYE Taxpayers
Earlier this year, HMRC reached out to wealthy taxpayers who had not filed tax returns for the 2020/21 and/or 2021/22 tax years. The letters were sent to individuals who had submitted returns for 2020/21 and 2022/23 but not for 2021/22, or for those who had filed returns for 2019/20 and 2022/23 but not for 2020/21…
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Starting Your Own Business as a Sole Trader: Key Points to Consider
Your business setup affects the taxes you owe and the reports you need to file. If you’re running the show by yourself without forming a company, you’re a sole trader. On the other hand, if you run your business through a personal company, even if you’re the only employee and director, the company is its…
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Tips for Tax-Free Savings Income in 2024/25
In the current tax year, you can enjoy some savings income tax-free within certain limits. The availability of these tax-free routes depends on your tax rate. The New Savings Allowance Both basic and higher rate taxpayers have a savings allowance in addition to their personal allowance. For the 2024/25 tax year, the savings allowance is…
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Small earnings from self-employment – Tax and National Insurance implications
Many people earn small amounts of money from self-employment, often as a side hustle. For example, this may be from craft or baking activities, tuition or the provision of services, such as babysitting. If you earn money in this way, it is important to understand the associated tax and National Insurance implications. Tax consequences A…
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Key Highlights from the Spring Budget 2024 Unveiled by Chancellor
On March 6th, the Chancellor presented the highly anticipated Spring Budget 2024, introducing a range of measures aimed at bolstering economic growth, improving public services, and tackling immediate challenges while laying the groundwork for long-term sustainability. Here’s a breakdown of the key takeaways: Tax Relief for Working Families In a bid to reward hardworking families,…
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