Property Tax in the UK – What You Need to Know

If you have bought a residential property in the UK and intend letting it out then it is very likely you will have to declare your income from and state the expenses incurred on the property on your Self-Assessment Tax Return. There are some exceptions but most people will fall into this category so it is essential you know about property tax.   If the property is owned jointly by 2… Continue Reading

Top Ten Tax Tips For SMEs

Of course all businesses want to make sure they are handling their tax effectively and benefiting from all of the reliefs and exemptions that are available to them. However, this is arguably even more important for SMEs, who tend to have smaller budgets and fewer resources to be able to handle everything in-house.

So take a look at these ten best tax tips for SMEs in particular:

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Company Car Tax Guide

Company cars are considered a Benefit In Kind (BIK) and, therefore, they are subject to tax from HM Revenue & Customs (HMRC). A car is not deemed a necessity so it’s viewed as an additional perk that you get on top of your annual salary.   Company car tax can be a bit perplexing to those who are new to the system. Normal VED car tax is calculated by merely taking into account CO2 em… Continue Reading

How to become a limited company

Whether your business should become a limited company depends primarily on the individual circumstances of the business. One of the key factors determining a move to limited company status – or indeed setting up a business as a limited company from the outset- is the possibility of making a financial saving.

Why should I become a limited company?

Businesses with both small … Continue Reading

VAT for small businesses

What is the definition of VAT?

Value Added Tax is a tax that suppliers of either goods or services charge on top of the cost of the goods or service and is something often handled by a specialist business accountant. There are four different VAT categories depending on the type of goods and services supplied.

Who is exempt from paying VAT?

Education, finance, insurance, doctors and d… Continue Reading

Tax Gap, Tax Avoidance and Tax Evasion

HMRC define the “tax gap” as the difference between the amount of tax that they should be collecting and the amount they actually collect. In percentage terms this has been falling in recent years with the gap at 8.5% in 2005/06 and at 6.8% for 2012/2013, equating to £34bn for 2012/2013. The tax gap is comprised of amounts estimated to not have been collected because of t… Continue Reading

Receiving Rental Income? Get Your Tax Affairs Up to Date

Since the autumn of 2013 HMRC has been running a campaign concerning let property.  This campaign offers individual landlords, and those renting out their own homes, the chance to disclose any taxable income to HMRC that they have not previously disclosed and get their tax affairs up to date. The tax authorities have recognised that some people might have been unaware that their r… Continue Reading

Low Corporation Tax Rates in the UK

What is the corporate tax rate in the UK?

Many countries around the world have long competed to attract foreign businesses by having an attractive business tax regime and low corporation tax rates. This explains why Google is based in Ireland, why eBay operates their business from Luxembourg and why McDonalds operates from Switzerland. The United Kingdom has been a part of this co… Continue Reading

10 Tips To Save Tax

We all like to save tax and there are many simple ways to do so whether you are a higher rate tax payer or not. Here are 10 of our current favourites:

 #1 Choose a Low CO² Emission Company Car

The carbon dioxide emission level of a company car determines the amount of tax you will have to pay – the car benefit charge. This car benefit charge is calculated by multiplying the cost of the ca… Continue Reading

Small Business Tax Issues

Setting up on your own could be a long-held dream that you have been working towards for years, it could be an opportunity only made possible by a redundancy payment or may simply be your only option where there are limited permanent employment alternatives. Whatever the reason, you need to be aware that the small business tax rules for the self-employed are significantly more comp… Continue Reading