National Insurance for the Self-Employed
Here’s everything you need to know about National Insurance Contributions, the rates, the changes, who they affect and why.
Here’s everything you need to know about National Insurance Contributions, the rates, the changes, who they affect and why.
With HMRC opening an ever increasing number of compliance reviews into the tax affairs of small business, Accounts and Legal now offer client a fixed fee Tax investigation Service. We look at why.
How can a small business owner reclaim the VAT paid on allowable business expenses clocked up while visiting other EU countries?
Calculating your tax bill at the end of your financial year can be scary, but there are easy ways to avoid the panic that comes with paying the taxman.
As Britain readies itself to exit the EU, George Osborne has revealed his plans to cut Corporation Tax to just 15%.
Following George Osborne’s decision to introduce a new 7.5% rate of dividend tax we consider whether dividends are still a tax-efficient option for small business owners.
The singer Adele has been lumped with a rather large tax bill after miscalculating her dividend payments.
Every business owner has an obligation to ensure they pay the correct amount of tax to HM Revenue & Customs, but that doesn’t mean they should ignore legitimate tax breaks or fail to account for deductible business expenses.
HMRC has issued you with a tax refund - should you blow it all on a lavish holiday or reinvest it in your small business? Decisions, decisions...
Tax surrounding food can be tricky, and some of our most beloved brands have taken on the battle against HMRC. Here are three cases that have given HMRC raised eye brows:
All companies are required to file a tax return every year to HMRC, in order to figure out how much corporation tax is owed. What is a corporation tax return, when do you need to file it, and what information should be in it?
HMRC is now in battle with several large corporations regarding big tax bills of their own, taking the stage into court. HMRC has set aside billions of pounds to deal with legal cases, and although many battles are with the big firms, there's a lot for small businesses to learn here.
With corporation tax set to fall to a record low of 17% by 2020, is now a good time to set up a limited company?
Finding out that you are getting a tax return from HMRC? Well, unfortunately it does not always mean good news. Here's what you need to know about how it affects your business:
A previous state-supported scheme is set for a u-turn or full reversal as ministers consider introducing a tax on diesel cars.
What can a small business do to reduce the risk of an HMRC tax investigation, and how can the business prepare in case the tax inspectors do come a-calling?
We know that keeping track of all tax rules can be hard, especially as we live in an increasingly global economy. Don't fear, that's why we're here. Your business could be hit by double taxation, make sure you are prepared.
Not everything is as certain in life as taxes. What is a tax band and how much will you need to pay? Find out in our latest article.
What is the VAT Flat Rate Scheme, how does it differ from the standard rate scheme, and how can it help to simplify VAT reporting for small businesses?
No one can have missed that Donald Trump is running for president of the United States. As he is the only president who has refused to reveal his tax returns, we wonder why?
Some say that scrapping the VAT on fuel would benefit businesses. But is it really that easy?
Lionel Messi's trial for tax evasion has kicked off in Spain this week, with Messi's father also accused of tax evasion.
What is a dividend waiver, how is it used...and when should it not be used?
The deadline for filing your self-assessment tax return may still be months away, but here are 5 reasons you should consider filing early.
Are company cars a bad idea for small businesses? If so, what's the best alternative?
What is VAT and how do you register for it? Don't worry, we will tell you all you need to know.
Cost cuts have been made in the most recent budget by George Osborne, benefiting small businesses in the UK. But make sure you are aware of these stealth taxes.
96% of British SMEs that export are exporting to other EU countries, but the question is: how straightforward is VAT across EU borders?
From sandwiches to your home office, we reveal the ten top tax deductions for the owners of limited companies.
What happens if a small business is unable to pay HM Revenue & Customs the money it owes?
The government's new Apprenticeship Levy is designed to create 3 million new apprenticeships by 2020, but some business leaders are not happy about this new 'payroll tax'.
IT and construction workers often operate through umbrella or personal service companies, but changes introduced in the new tax year threaten the appeal of contracting through an intermediary.
From April 2017 public sector bodies such as local councils or government bodies will need to check that the individuals they employ through umbrella or personal service companies pay the right tax.
Would scrapping Employer’s National Insurance Contributions represent a bigger boon for small businesses than lower corporation tax?
A lot of people have chosen to be self employed because of greater work life flexibility and the possibility for a quicker salary increase. But, is this trend changing?
New rules introduced in this tax year change the way tax on dividend is charged and could make it more expensive to trade as a limited company. How will it affect your business?
With the UK’s move towards tax devolution allowing Northern Ireland to mirror the 12.5% corporation tax rate in the Republic of Ireland, is the UK at risk of being branded a tax haven?
Chancellor George Osborne has given the sharing economy a boost with a new tax allowance that could encourage more people to set up micro-businesses.
The Chancellor may be planning a few nasty surprises for the public (and small businesses) in this week’s Budget announcement.
Valentine’s Day is round the corner so it’s time to stock up on your partner’s favourite chocolates and flowers. Sometimes a card is enough to say those three magic words, ‘I love you’, especially for married couples but if that just won't cut it and you're struggling to think of something orginal then you could turn to HMRC.
Chancellor George Osborne and HMRC have been criticised after letting Google get away with paying a settlement to cover £130million of tax dating back to 2005.
Will George Osborne's new bank tax hurt smaller banks, and by extension small businesses?
MPs are set to debate controversial proposals that could see small businesses and the self-employed moved to quarterly tax reporting by 2020.
Which rate of Value Added Tax would a small business pay on Companies House charges?
The festive season is over, the New Year fireworks have long since faded, so now it’s time for small business directors and sole traders to turn to the serious January business of the dreaded self-assessment tax return.
What are the the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, and why are they good for small businesses?
The launch of a new business is an exciting time for everyone involved, but at the risk of raining on your startup’s parade it is important to point out that with every great endeavour comes new responsibilities. All actively trading companies have an obligation to file annual accounts with Companies House and an annual tax return with HM Revenue and Customs, and your new startup is no exception.
With a number of similarities to PAYE, the Construction Industry Scheme (CIS) is a mandatory withholding tax from a self-employed construction subcontractor's payments and paid directly to HM Revenue and Customs on their behalf. The deductions serve as advance payments towards the subcontractor’s annual income tax, most subcontractors in fact have no income tax to pay at the end of the year under CIS, a lot are due a refund.
Changes in the tax rules mean many landlords will see their profits decrease. So how can they mitigate the impact of the removal of mortgage interest relief?
Is it a coincidence that the birth rate is dropping at the same rate that new company formations are growing? Is capitalism compatible with family life? We explore the statistics here.
In the recent budget, George Osborne promised a crackdown on freelancers, consultants and contractors who set up companies to avoid tax. While the details are yet to be revealed, there are concerns Osborne has got the wrong end of the stick.
From October this year, HMRC is set to gain powers to take money directly from your bank account. While HMRC seemed to be amending legislation in line with public concerns, it now appears promised safeguards are not in place.
If you move income, gains or assets to a non-UK jurisdiction without declaring them in the UK, you are committing offshore evasion. Offshore evasion is illegal and last week the EU signed an agreement with Switzerland to share residents’ financial information. This is a huge step forward in the fight against tax evasion, and just the first of many.
Your venture is growing and you haven’t had a weekend since you had the idea for the business. Perhaps it’s time to hire some staff, but do you know the legal and financial implications of becoming an employer? We explain your basic obligations in two short articles.
A family business is a lot of work. Your partner grits their teeth as you question their expenses, and your children become monosyllabic as they help with the lambing before school. But if you make their involvement official, there could be big benefits. How can you use your family to minimise your tax bill?
In the distant past, surplus company money was often used to buy expensive cars with which company owner-directors could have their fun, but tax on company cars soon became prohibitive. Is 2015 your only chance to save tax by buying a Porsche?
April is coming: rain, Cadbury’s Creme Eggs, poorly judged pranks, and… a new, improved personal tax allowance! Your personal allowance is the amount under which you are not liable for any tax, and as of 6th April 2015, it will increase from £10,000 to £10,600. But what does that mean for you?
Did you know that due to sickness a million each year between September 2010 and October 2013, can you imagine how much that is costing businesses? But all is not lost as measures are being taken to improve the situation.
There is a massive change about to take place for VAT registered businesses who supply cross border EC supplies of digital services to consumers. Make sure you're ready.
HMRC continue to be cracking down on travel and subsistence costs on personal tax returns for the self-employed. Here we have look at two particular example cases and their outcomes.
VAT can be tricky to get your head around at the best of times but when it comes to the world of catering it’s a whole new kettle of fish.
VAT can be tricky to understand when you’re a start-up or even if you’ve been in business for a while. We’ve written this article to make it clear and to help you ensure that you have the most effective set up for your small business.
Despite it being alleged that it’s the footballing megastar’s father who has control over the family’s finances, judges have confirmed that Lionel Messi will probably still be prosecuted for tax evasion in the Spanish courts.
It’s one of life’s greatest battles, we think we’re paying too much tax yet we all want more from the government. We would all agree that our healthcare is important, our streets must be policed and our children have to be educated, so where exactly would we be happy to see cuts?
As the newly appointed Burberry CEO pledges to donate part of his annual salary to charity we ask can acts of generosity bring their own reward?
A policy piloted by Camden’s Labour government in 2012 has been adapted into national Labour’s platform leading into the European elections. The policy dubbed the “Ghost Homes Tax” will be spooking landlords with empty properties as it allows authorities to tax them by an extra 50% of council tax they exact.
It might have taken a judge 147 pages to describe what Gary Barlow and his Take That cohorts did wrong but in the eyes of the law in fact none of the charges were criminal. So what's the difference between tax evasion and tax avoidance?
We’ve all seen the ads at the beginning of DVD’s, “You wouldn’t steal a car! You wouldn’t steal a handbag! Would you steal a movie?” They’ve unashamedly dramatised what most of us would call petty crime but why?
So the taxman has laid his cards on the table and declared that Bridge, a ruthless team game requiring stamina, concentration and years of practice, is not a sport. As we continue to marvel at the astronomical wage packets and considerable prize pots being paid out to the world’s leading sportsmen, few people realise that aspects of officially recognised sports are actually tax free.
1966 was the year UK celebrities ran for their lives as the whopping 95% supertax rate was imposed by Harold Wilsons Labour Government. Mick Jagger fled to France and John Lennon legged it to the United States while his Beatles comrades penned a song entitled the Taxman to express their disgust at the sky high charge but even now with the UK’s top tax band being less than half of that the subject of tax still raises hot debates amongst UK citizens. Here we take a look to see if we really are moaning for a reason, are we really are amongst the worst off when it comes to the most taxed earners in the world?
The IR35 legislation was put in place in 2006, to determine whether or not (from a tax perspective) a contractor is in fact an employee. But curiously, if the result of the IR35 assessment is that a given contractor is effectively an employee for tax purposes, this provides them with none of the legal rights enjoyed but typical salaried staff. And that really is the worst of both worlds, so it’s important to make sure that you don’t fall foul of the somewhat complex rules surrounding the IR35 legislation.
With its soft sponge base, thin chocolate topping and tangy orange centre it would be hard to find someone in the UK who didn’t like the humble Jaffa Cake, well, unless you ask around the HMRC office that is. In 1991 the powers that be at HMRC tried to reclassify Jaffa Cakes as biscuits which would have pushed up the price by 20%. There was an outcry. How could the Jaffa “Cake” which goes from soft hard when stale, as opposed to a biscuit which goes from hard to soft when off, be victimised like this?!
With the Self Assessment deadline looming you would think that hardly any of the 11 million registered as self employed in the UK would not still have a tax return to complete and send to HM Revenue and Customs; you would be wrong!
In these challenging economic times, it makes sense for small business owners to make sure that they aren't overpaying corporation tax. We've put together some tips which we have found useful when trying to keep tax to a minimum.
In these times of strained government finances, maximising tax receipts has become a key priority for the Chancellor. Make sure you don't get caught out by an inspection.
In these times of austerity, tax free employee benefits are an interesting alternative to pay increases and great for improving employee morale.
Distributing cash to small business owners through dividends is classically much more tax efficient than taking the same amount through salary, but is there anything else to watch out for?
Payroll reporting requirements are changing. Find out what needs to be done.