HOW DOES TAX CREDIT WORK IN UK?
The tax credit is a payment made to parents in the UK to support taking care of their children. These are only paid by revenue to qualifying parents in Uk. The tax credit can either be a child tax credit or working tax credit The amount paid to an individual depends on how much they […]
WHY IS IMPORTANT I HAVE NATIONAL INSURANCE CONTRIBUTIONS?
Contributing into national insurance is another form of tax paid by individuals earning income in the UK. National insurance is the second-largest source of income for the UK. 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 […]
3 CAPITAL ALLOWANCE RATES TO CLAIM AS TAX RELIEF
Capital Allowance rates vary depending on the plant and expenditure. To explain the rate I will be using the various percentages associated with each allowance. Zero percentage on capital expenditure. 0% simply means the business owner can’t claim capital allowance on that plant and machinery. Examples of such are building, floors or any other asset […]
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 […]