Depreciation and capital allowances

Most expenses incurred by business is written off during the year, but some costs continue for several years, for example, vehicles and computers. Because they depreciate over several years, you can allocate a portion of the cost to each annual set of accounts. For...

How to complete a VAT return – the basics.

To complete a basic VAT Return use notice 700/12 online. For ordinary UK sales/purchases, complete boxes: 1) Output VAT, that is VAT on your sales, and for claiming VAT on fuel on cars in the business, apply what’s called a VAT scale charge or VAT fuelled scale...

What is Dividend Tax?

Dividend tax is the unpopular income tax that came into effect in April 2016. Before then tax wasn’t paid on Dividends unless you were in the Higher Rate tax bracket. Now Basic Rate Tax payers have had to pay 7.5 pence on every £1 received as Dividends – and...

Am I caught by IR35?

Four factors are usually used to decide whether you are caught by the IR35 rule (working like an employee vs self-employed person). You are not caught by IR35 if: CONTROL: You decide how you work and it is not controlled by the client. SUBSTITUTION: If you have a...

What are my options for being paid as a Contractor?

As a Contractor you can handle your income in 3 different ways. Go on an agency payroll – the simplest option but you will pay PAYE and NI on your earnings; use an Umbrella Company where you again pay PAYE and NI plus pay the Umbrella Company a fee and possibly not...

MTD and VAT registered businesses 

Making Tax Digital (MTD) is the biggest change in our tax system since Self-Assessment was introduced.  From April 2020, all businesses and landlords with annual turnover over £10,000 will have to make online quarterly submissions of key financial information to...