The VAT “Cliff Edge” and What It Means for Your Business For a growing small business in the UK, crossing the VAT (Value Added Tax) threshold is a major milestone. VAT is a tax added to the price of most goods and services, which VAT-registered businesses must charge to their customers and then pay to […]
Category Archives: Accounting and Finance
Stay ahead with expert insights on accounting and finance to help you manage your business and personal finances effectively. From bookkeeping tips and tax strategies to financial planning and investment advice, this blog covers essential topics to keep you informed and financially savvy. Whether you’re a small business owner, freelancer, or finance professional, you’ll find valuable guides, industry updates, and best practices to optimize your financial health.
Empower yourself with the knowledge to make informed financial decisions and drive business success!
The Fear of the Brown Envelope For millions of self-employed people across the UK, there are few things more dreaded than the sight of a brown envelope from HMRC landing on the doormat, especially after a tax deadline has passed. The penalty system for Self Assessment can seem complex and unforgiving, and with millions of […]
What is Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)? MTD for ITSA marks the most significant transformation of the UK’s Self Assessment system since it was first introduced It is a government initiative led by HMRC to modernise tax reporting by moving it entirely online. For millions of self-employed individuals and […]
Why Understanding Allowable Expenses is Crucial for Your Profitability For any self-employed professional, freelancer, or small business owner in the UK, mastering the concept of ‘allowable expenses’ is not just good practice but it’s the single most effective way to legally reduce your tax bill. A common source of anxiety for sole traders is the […]
Accounting and Finance
Will the State Pension Increase in 2025? Understanding the 2025 UK State Pension Rise
The state pension in the United Kingdom is a regular payment from the government to individuals who have reached the state pension age and have made sufficient National Insurance contributions throughout their working lives. It provides a basic income in retirement and is an essential part of the welfare system. The Department for Work and […]
What is IR35 and Why Does It Cause So Much Stress? IR35, also known as the ‘off-payroll working rules‘, is a piece of UK tax legislation that has been a source of confusion and anxiety for contractors and freelancers for over two decades. Its purpose is to tackle ‘disguised employment’—a situation where a worker provides […]
Accounting and Finance
Self-Employed National Insurance Explained: Class 2 & 4 NICs After the 2024 Changes
Why National Insurance Matters (and Why It’s So Confusing) Self employed National Insurance Contributions (NICs) can often feel like just another tax to pay. However, their purpose is distinct: NICs build your entitlement to crucial state benefits, most importantly the State Pension, but also Maternity Allowance and Employment and Support Allowance. Recent government announcements about […]
No one wants to pay more tax than they need to. However, this is exactly what will happen if you fail to take account self employed allowable expenses in calculating your taxable profit. It is important, therefore, that as a self employed sole trader, you keep accurate records of the expenses that you incur in […]
PAYE, or Pay As You Earn, is the system by which employers deduct Income Tax and National Insurance Contributions (NICs) directly from an employee’s salary or wages and remit them to HM Revenue & Customs (HMRC) on the employee’s behalf. It ensures that employees pay their tax in real-time, aligning payments with earnings, rather than […]
If you’ve recently looked at your payslip and felt something seemed off—maybe your take-home pay dropped or you’ve been taxed unexpectedly—your tax code could be the culprit. In the UK, your tax code (such as the common 1257L tax code) plays a vital role in determining how much Income Tax your employer deducts from your […]