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Our News page is updated daily and the news feed is supplied by Sift media who are well respected writers in the industry. If you are interested in new laws, guidance and reports on anything that is happening in Government that could affect your business, these posts -will be useful. You can also sign up to receive them in your inbox.
What are the benefits in being VAT registered?
There are generally two reasons to register for VAT: Compulsory: When your sales exceed £85,000 in a 12 month period. Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses). If...
Can I pay my husband/wife “wages” to save my business some tax
Many business owners pay their spouse a salary – typically, anything up to the Personal Allowance limit (£12,570 in 2021/22). If the spouse has no other taxable income, they will not pay tax on their salary – and the business owner saves tax (at 19%, 20% or 40%) on...
Why should I use an LLP?
A Limited Liability Partnership (LLP) is safer than a typical Partnership, just as a Limited Company is safer than a Sole Trader business – because of ‘limited liability’. Safer because: The advantage an LLP has over a Partnership is that Partners in LLPs are not...
When/why/how to set up a PAYE scheme in your limited company
You may be wondering when and how to set up a PAYE scheme for your limited company, or why you should in the first place. We've got all the advice you need to make the right choice for your business. When does a limited company need PAYE? The vast majority of...
IR35 and Umbrella companies
Umbrella companies have been around for many years. They basically combine the job insecurity of the self-employed with the high taxes of an employee under PAYE - but they have been ‘popular’ because they allow the hirer to pay a worker in a way that helps them to...
How do I use allowances and losses against capital gains tax?
There is an order for deciding how to set off the Annual Exempt Amount (for Capital Gains) and Capital Losses against Capital Gains The Annual Exempt Amount (2021/22 £12,300) is set against any Capital Gains in the year BEFORE any Capital Losses are brought forward....
What are the advantages of paying voluntary National Insurance contributions
Generally speaking, you get a bigger state pension for each year in which you pay National Insurance contributions. But sometimes, taxpayers don’t have enough income to be charged National Insurance - so risk having a smaller state pension. If you are self-employed,...
Should you buy a car via HP or lease a car?
Most importantly, it depends on the deal. So, get your calculator out! But do watch out for excessive mileage penalties in lease agreements. Tax treatment varies depending on the method used to acquire a car – but it is often not tax efficient for a Company to...
Car expenses: Sole Trader vs Limited Company
When you are a Limited Company or a Sole-Trader or Partnership, most expenses are very similar in terms of tax relief. But, there is one area where there are differences – car expenses. A Sole-Trader would generally claim...
What is the marginal rate of tax?
The marginal rate of tax paid is “the percentage of tax paid on earnings for the next pound earned.” What that means is that if you earn £50,270 your marginal rate of tax is 40% because for the next pound that you earn, you will be paying tax at 40%. Below are the...
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