Dividends Don’t Work the Way You Think They Do (And HMRC Is Starting to Notice)
In many owner-managed companies, there’s a persistent misunderstanding about dividends. It usually shows up in one of three ways: I’ll just take what I need
In many owner-managed companies, there’s a persistent misunderstanding about dividends. It usually shows up in one of three ways: I’ll just take what I need
Running a limited company from home often blurs the lines between personal and business expenses. One area where directors commonly trip up is with claiming
From April 2025, the tax benefits of Furnished Holiday Lets will be removed, impacting mortgage interest relief, capital allowances, and profit allocation. Many landlords may need to rethink their strategy, but with careful planning, there are still options available to mitigate the changes and structure their rental business effectively.
The sales turnover threshold at which a business would ordinarily be required to register for VAT in the UK has been £85,000 since 1st April 2018, only now changing to £90,000 from 1st April 2024.
With different rules for Limited Companies and sole traders, flat rates for simplified accounting, cash accounting, accruals accounting and restrictions on property businesses depending on the type it’s not surprising that business owners get confused about what counts for an expense and what doesn’t in their particular business.
We can all earn a £1,000 per tax year from trading without worrying about a tax return but some social media businesses are so successful so quickly that their owners who are often inexperienced in the tax implications, are swept along with the momentum and before they know it they have responsibilities but not the knowhow, time or possibly even awareness to deal with the them.
Bookkeeping and accounting are both essential functions for any business, but they have different roles and responsibilities. In this blog post, I will explain the difference between bookkeeping and accounting, and why you need both for your business.
The key message is that Making Tax Digital is going to be implemented for sole traders and Landlords by April 2024 so if you haven’t already done so you need to be preparing to find software that you can get on with by that date. Therefore for a relatively pain free MTD journey we do advise starting with the software by April 2023.
When is a hobby not a hobby (in the eyes of HMRC) and should I be completing a tax return?
We waited worryingly for this budget, well I did after all the rumours and speculation e.g., taxing the reserves of limited companies which has not happened. And arguably Rishi Sunak’s second Coronavirus budget seems to mainly be supportive, at least for now.