IR35 IN PRIVATE SECTOR CHANGES FROM APRIL 2020
The IR35 legislation that has been used by HMRC since 1999 as an anti-avoidance tool for contractors that run their business through a limited company. In April 2017, The HMRC introduced some new changes to the way IR35 was applied in the public sector. How IR35 legislation in the private sectors would affect businesses. To […]
3 Types of expenses that can be claimed by business owners !
Expenses are a crucial part of reducing the income tax and national insurance paid in the UK. Every business is different, so the expenditure claimed could be different. There are three rules that could help to ensure that you are claiming the right expenses. Why is claiming the right expenses important? The consequence of not […]
5 ANSWERS TO THE QUESTION ‘DO I HAVE TO PAY TAX AFTER I DIE?’
Inheritance tax introduced Inheritance tax is a tax that is paid on an individual’s estate either whilst alive or after their death. This estate would include all its worldwide assets. The common misconception is that the inheritance tax is paid only when we die. This is far from the truth because it’s also paid on […]
5 ERRORS IN VAT RETURNS COMMONLY MADE BY OWNERS.
Errors in vat returns occur many times, the business owners who are VAT-registered have various obligations which include submitting correct VAT returns. The main reason for this is to ensure the accuracy of the returns submitted and prevent errors in vat returns, most especially, to ensure the right amounts of input and output VAT are […]
STRUCTURE AND BUILDINGS ALLOWANCE FOR NON RESIDENTIAL PROPERTIES
Structure and buildings allowance was introduced by HMRC for expenditure on the construction of non-residential structures and buildings. This relief is only available for expenditures incurred after the 29th of October 2018. THE TAX RELIEF FROM STRUCTURE AND BUILDINGS ALLOWANCE The relief that is given is a 2% straight-line allowance over a period of the […]
THE SELF-ASSESSMENT SYSTEM IN THE UK
Self-assessment system is used by the HMRC to administer and collect tax from taxpayers in the UK. Most UK taxpayers’ tax is collected at the source, however, some taxpayer under this system have to administer their tax by themselves. If not administered well, they are given penalties and made to pay interest on unpaid tax. […]
TAX CONSEQUENCES OF HAVING PENSION CONTRIBUTIONS IN UK
Pension contributions have tax consequences when contributed by taxpayers. Growing old is an inevitable aspect of life. As an individual age, they expectedly reduce their strength and capacity to work as much as they used to. It is, therefore, essential that effective and beneficial plans for their old-age days are put in place. Pension contributions […]
Pension contributions in the Uk
Pension contributions are the retirement plan for the future by putting something aside to live on when you grow old. The main idea with a pension is when individuals get old, they have less strength to work compared to when they were younger. Pension comes in different forms, all of which have specifications. There are […]
ARE LANDLORDS ALLOWED TO DEDUCT EXPENSES ON REPAIRS ON RENTAL PROPERTY IN UK?
Rental property improvements are usually done by landlords. The main reason for the improvements is to either make the property more suitable for tenants or to ensure the house is well maintained. The question most Landlords then ask is if they are allowed to deduct this cost as an expense. Declaring and paying tax on […]
HOW THE NATIONAL INSURANCE FOR EMPLOYEES IS CACULATED
National Insurance (NI) is a type of tax or system where employers, employees and self-employed individuals pay a certain amount as a contribution for the financing of state benefits. It is the second-largest source of income for the United Kingdom. It is paid by individuals between the age of 16 and the state pension age […]