Ever wondered why the tax year starts on the 6th of April and ends on the 5th of April the following year? Most logical thinkers would question as to why the tax year doesn’t coincide with the calendar year than runs to the 31st of December. In order to get to the bottom of this,…Read More
‘Dependent relative’ is defined as any relative who is unable to look after himself or herself. Dependent relative relief only applies on a property used by the relative before 5 April 1988, providing that this was the main residence of the relative. Should there have been a change of occupant after 5 April 1988 the…Read More
With the introduction of the Personal Savings Allowance in April 2016, many people stopped seeing the point in keeping their savings in Cash ISA’s, as after all, they won’t be taxed right? True in many cases, but that doesn’t mean that they can’t benefit you. If you don’t know, the Personal Savings Allowance means that…Read More
The 2018/19 self-assessment tax return must be filed online by midnight on 31 January 2020 if a late filing penalty is to be avoided. A later deadline applies where the notice to file a return was not given until after 31 October 2019 – in this case, the deadline is three months after the date…Read More
Marriage allowance is a government scheme which provides tax relief to married couples. Marriage allowance allows you to transfer 10% of your personal allowance, £1,250 in the current 2019/20 tax year to your spouse or civil partner, which could save you up to £250 in tax. Marriage allowance can be backdated up to 4 years.…Read More
If you are a limited company director and owner, you should prioritise working out the most tax-efficient methods to draw funds from your company. Below are some useful tips you can use to extract profits tax efficiently from your limited company: 2019/20 Basic director salary Take a director salary of £8,460 to pay a small…Read More
If you have been skilful or lucky enough to build a business and now think it’s time to pack up or sell, Entrepreneur’s Relief could be the answer for you. While there is more to cover than in this blog, this should give you a beginner’s guide to the Entrepreneur’s Relief. Why use it? On…Read More
A director’s current or loan account is a way for directors to essentially lend money to or borrow money from their company. The director’s loan account (DLA) is, in essence, a record of all transactions that occur between the company and its directors. 1) Loaning money to a company: Director’s loan accounts are a usual…Read More
The personal savings allowance (PSA) was introduced on the 6th of April 2016. Depending on your income, the PSA allows you to get up to £1,000 of interest tax free. The introduction of the PSA has resulted in the majority of people in the UK with income from savings no longer paying tax on this…Read More
Wearing a work uniform may not be seen as a benefit – but you can gain Tax relief from it! HMRC give you the opportunity to claim up to 4 years’ worth of uniform allowance. What is classified as a uniform? ‘A uniform is a set of specialised clothing that’s recognisable as identifying someone as…Read More
Homeworking expenses include supplies used in order to complete your work. Computers and other technology Furniture Internet Access Homeworking allowance for an employee only applies to expenses that are completely necessary and exclusively in the performance of employee duties. In other words, you cannot proportion expenses for personal and business use. Currently, HMRC allows a…Read More
The homeworking allowance allows you to claim back certain expenses to cover the costs incurred when working from your home. These include: Room space Gas and Electricity Phone Bills Exempt expenses would include anything that is for personal use. Method 1 – Apportion actual costs As a self-employed individual working from home, you can choose…Read More
Behind every good business is a great accountant.
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