HMRC Tax Calculation Letters
For some reason best known to HMRC, they are sending out letters to every sole trader when their self assessment return has been submitted. At first glance, this looks like they are amending the return. The reason for sending the letters is due to the change in Class...
5 Reasons Why Bookkeeping Matters
Bookkeeping is the recording and tracking of financial transactions in a business. It’s different from accounting, where the day-to-day recordkeeping is then analysed, reviewed, and reported. It’s very important to make sure your books and records are kept up-to-date...
Do You Know the Rules on Capital Gains Tax on UK Residential Property?
The current rules state that capital gains on UK residential property have to be declared and the tax paid within 60 days of completion. This means it is essential to keep your accountant informed when you plan to sell a UK property. Note: This does not apply to your...
Payments on Account – Helping You Manage Your Self-Assessment Payments
Payments on Account, Helping You Manage Your Self-Assessment Payments The term ‘Payments on account’ confuses a lot of people. Payments on account only apply if your liability is over £1,000 and the amount due is more than 80% of the tax paid through PAYE. For...
Understanding Making Tax Digital for Your Income Tax Assessment: How to Get Started
Understanding Making Tax Digital for Your Income Tax Assessment: How to Get Started After many false starts, Making Tax Digital for your Income Tax Self Assessment is finally coming. (Making Tax Digital (MTD): Income Tax Self Assessments (ITSA)) Will Making Tax...
Limited Company or Sole Trader: Which is Right for You?
Limited Company or Sole Trader: Which is Right for You? I often get asked by my clients, ‘Should I be a limited company or a sole trader? Which would be better for my company? In this article, I will outline some of the pros and cons of each status to help you make...
Basis Period Reform
What is Basis Period Reform? Basis Period Reform ONLY affects sole traders and partnerships that have a year end other than 31st March-5th April. If this does not apply to you then these changes will not apply to you either. Introduction Basis Period Reform was...
How Do I Pay My Tax?
One question I often get asked is ‘How Do I Pay My Tax?’ To answer this, I have done a summary of the major taxes and how to pay them. 1. Corporation Tax On the anniversary of your year end, you will have received a notification from HMRC to file a Corporation...