The UK is moving firmly into the digital era of tax reporting as HMRC continues to roll out its Making Tax Digital (MTD) scheme. VAT has already made the switch, and the next big step- MTD for Income Tax Self‑Assessment (ITSA)- is set to affect millions of self‑employed people and landlords. With changes starting as early...
The Chancellor has delivered her second Budget under the Labour Government, unveiling a package of measures aimed at easing the cost of living, strengthening public services and stabilising public finances. While businesses will see some welcome support, many individuals and property owners face new taxes or tightened reliefs. Key changes announce include: Personal Tax,...
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The government is pressing ahead with Making Tax Digital (MTD) for Income Tax – and it will affect many sole traders and landlords over the next few years. Here’s what’s changing, when it’s changing, and how to get ready. What is MTD for Income Tax? Under MTD, sole traders and landlords whose “qualifying income”...
The Monetary Policy Committee (MPC) of the Bank of England have reduced the Bank Rate to 4% (previously 4.25%). The decision was made by a narrow 5-4 majority and required 2 votes. This perhaps highlights the uncertainty that continues in the economy. What Factors Led to the Reduction? The MPC’s report shows that they...
HMRC have identified an issue affecting some Self Assessment taxpayers in relation to Class 2 National Insurance contributions (NICs) for 2024/25. Some self-employed taxpayers with profits above £12,570 have seen a Class 2 NICs charge of £358.80 added to their accounts when they shouldn’t have been. In some circumstances it will be less. HMRC say that...
HMRC are pushing ahead with the implementation of Making Tax Digital (MTD) for Income Tax, set to commence from 6 April 2026. Legislation Day saw the publication of draft MTD legislation, which makes the following recently-announced changes to the planned regime: • More individuals will be exempt from MTD – Ministers of religion, Lloyds...
Employees who join their employer’s pensions salary sacrifice scheme stop paying pension contributions and instead sacrifice part of their gross salary in return for higher employer pension contributions. This means that both employers’ and employees’ National Insurance Contributions (NICs) are saved whilst maintaining the same amount of pensions savings. This is because employers’ pension...
“What’s the most tax-efficient way to take funds out of my company?” is perhaps the most common question put to accountants by their owner-managed company clients. The answer used to be simple: “Take a salary up to the level of the personal allowance and take the rest as a dividend”. Unfortunately, we are no...
If you’re considering buying a property, especially as an investment, one of the key decisions you’ll face is whether to hold it personally or through a limited company. This choice can have long-term tax, financial, and administrative implications, and there’s no one-size-fits-all answer. Here’s a look at some of the main considerations. Tax on...
