What are Depreciation and Capital Allowances?

Depreciation: Is an accounting term for spreading the value of a fixed asset (vehicle or equipment etc.) over its useful life.  Spreading the cost is fairer and more accurate than deducting it all from the Business’s Profit in the year of purchase.  i.e. Depreciation...

What to consider when buying a commercial property.

Stamp duty There are 3 rates of Stamp Duty Land Tax on the purchase price of a commercial property: 0% up to £150,000; 2% on the next £100,000; 5% over £250,000. VAT With commercial properties, the landlord normally applies to HMRC to ‘opt to tax’ –...

Tax on overseas income

If you are working overseas and pay tax there, you can usually claim what is called a Foreign Tax Credit. The UK has an agreement with nearly every country in the world, so when you pay tax overseas you can enter it in your Tax Return and the UK tax due can be reduced...

National Insurance – the forgotten tax

National Insurance (NI) is one of the most important, overlooked, taxes for most working people. In context, for an employee earning between £12,500 and £50,000 per year, for every extra £1 they receive in net pay, the Treasury receives 67.35p (29.41p in Income Tax...