Are you trading?
HMRC use badges of trade to ascertain if a trade exists. Find out what the badges are and how to determine if you are carrying out a trade.
Accounting
Tax relief for bad debts
Bad debts are a fact of business life and most businesses will suffer a bad debt from time to time. This may be because the customer goes out of business after the work has been done or the goods have been supplied, or runs into financial difficulty resulting in them defaulting on the debt. Unfortunately, … Read more
Common deductible business expenses
You can deduct expenses incurred for the purposes of your business to arrive at your taxable profile. So which expenses are commonly deductible?
Capital allowances for cars
Capital allowances provide tax relief for expenditure on business cars. In this article we explain the different types of allowances available.
How to claim the Inheritance Tax transferable nil rate band
For inheritance tax (IHT), there are potentially two nil rate bands available. The first – the nil rate band – is available to everyone and is set at £325,000 until 5 April 2026. An estate does not have to pay any IHT up to this amount. The second nil rate band is the residence nil … Read more
The pros and cons of the VAT flat rate scheme
The VAT flat rate scheme can save you work, but it may cost you money. This article explains why it is not always a good idea.
Tax-free savings income
There are various ways to enjoy savings income tax-free. However, not all routes are open to all taxpayers – the options depend on the nature of the savings and the saver’s other earnings and marginal rate of tax. Savings Allowance Basic and higher rate taxpayers are entitled to a savings allowance. The allowance is set … Read more
Changes to National Insurance for the self-employed
If their profits are high enough, the self-employed pay two classes of National Insurance contribution – Class 2 and Class 4. Class 2 contributions are flat rate contributions of £3.15 per week for 2022/23. It is the payment of Class 2 contributions that enables a self-employed earner to build up entitlement to the state pension … Read more
Is paying mileage allowance at the approved rate still a good idea?
Where an employee uses their own vehicle for business journeys, their employer can cover the associated costs by paying a mileage allowance. As long as the allowance does not exceed that payable at the approved rate, payment of the allowance is tax-free. Employers can instead reimburse the employee’s actual costs associated with using their own … Read more
Plan capital expenditure to benefit from time-limited reliefs
Unincorporated businesses and companies planning capital expenditure projects need to be aware of some time-limited reliefs. Timing capital expenditure to benefit from these reliefs can be financially beneficial. Annual investment allowance The annual investment allowance (AIA) is available to both unincorporated business and to companies. It provides immediate 100% relief against profits for qualifying capital … Read more