A recent history of Corporation Tax Rates

In recent years, for small companies the Corporation Tax Rate has effectively increased from 20% to 25.07% (small UK business had a 6% rise in tax on profits – including dividend tax!).  Whereas, from 2006/07 to 2017/18, the main Corporation Tax Rate (for more...

Can I pay my wife “wages” to save my business tax?

Many business owners pay their spouse a salary – typically up to the Personal Allowance limit (£11,850 in 2018/19). 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 the salary...

Tax free income

Over the last year or two, and partly to remove some taxpayers from the Tax Return system (because they cost more for HMRC to administer than they pay in tax), certain types of income are not taxable up to a certain level.  So I thought it would be a good time to list...

Explaining HMRC Payments on Account in January and July

If you have recently started trading as a self-employed person, your first income tax bill will be due in the January following your first trading year, and for many it comes as a bit of a shock.   This is because your first tax bill, due in the January, will commonly...