Something You Probably Didn’t Know about Value added Tax in Uk.
Value Added Tax Value Added Tax (VAT) in the UK is a tax that is paid by consumers as soon as they buy an item that is a taxable supply. The tax is not meant to be suffered by a taxable business rather it’s the final consumer that suffers the burden of VAT. It’s like […]
Tax savings and relief for Pension contributions
In the UK, every time an individual makes a qualifying contribution to a registered pension, they enjoy tax relief. This relief is either enjoyed at the source or by claiming through your self-assessment. The restriction for tax relief. To be able to enjoy this relief you should have actually earned £3,600 in a year or […]
NEW YEAR, NEW YOU!
Starting a new business, taking on a new challenge! As we start the New Year, we might feel that we need to start a new business. As a result, this decision might be you quitting your old job and starting a new business. What to do as you leave the old and start a new […]
HOW YOUR PERSONAL ALLOWANCE AFFECTS THE TAX YOU PAY!
Personal allowance and tax band explained. The Personal Allowance is the amount of income everyone is entitled to receive free of tax each year. the amount for the tax year 2018/19 is £11,850. Every individual living in the UK is entitled to a personal allowance. If it is not fully used, then the unused allowance cannot be carried […]
ARE YOU AN EMPLOYEE OR SELF EMPLOYED?
Employment status key test. Who is an Employee? An employee is an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.Often people mix this up as they are not sure what category they are on. I have been often been […]
DANGER ALERT TO BE AWARE OF WHEN GIVING A GIFT TO LOVED ONES.
GIVING GIFTS WITH RESERVATIONS. A gift with reservation occurs when an individual makes a gift and still enjoys the benefits from the gifts. The issue here is when an individual gives a gift to another individual, it would be a potential exempt transfer for inheritance tax purposes. A potentially exempt transfer is not chargeable to […]
Would you be leaving some of your business to HMRC when you die?
Planning ahead and claiming Business property relief could avoid that! Business property relief is very important. Every business owner that would like to save tax on inheritance tax. Business property relief reduces the transfer of value of the property transferred for inheritance tax purpose However, to be able to enjoy this relief, your business would […]
WHAT TO DO WHEN YOU PAY TOO MUCH TAX.
When a business or individual pays too much tax in a year they could claim a relief referred to as Overpayment relief. To be able to make this claim, it must be made in writing within 4 years after the relevant tax year. To make this claim, certain conditions must be met. Conditions for Overpayment […]
EVERY PENNY COUNTS,TIPS ON SAVING TAX
Business expenses claimed against profit while running a business is very important. The reason is that any qualifying expense would gain some taxable relief, therefore, paying less tax. What can be classified as a business expense? The easiest way of explaining this is any amount you spend that relates to day to day running of your […]
MISTAKES ON HMRC RETURNS THAT CAUSE PENALTIES AND SLEEPLESS NIGHTS
THE EFFECT OF ERRORS AND PENALTIES ON TAXPAYERS When errors are made in returns sent to HMRC, They have the power to issue the penalty to taxpayers. This blog explains some of the errors, and how to correct them with their deadlines for correction and penalties. CONDITIONS TO BE SATISFIED FOR PENALTIES TO BE IMPOSED […]