If you run your own company, you might have the option to take a bonus either as salary or as a dividend. But which one leaves you better off? The answer depends on several factors: how much profit your company has, your existing income, the current rates of tax and National Insurance, and whether...
P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2024/25 need to be submitted by 6 July 2025. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software. Remember that reimbursed expenses no longer need to...
The Furnished Holiday Lettings (FHLs) regime was abolished on 6 April 2025. What does the abolition mean for your holiday letting property? The property will become part of either your main UK or overseas property business. This means that some of the beneficial tax rules that previously applied will no longer apply, such as:...
If you’re a sole trader or landlord with annual income over £50,000, a major change is coming your way. From 6 April 2026, you may be required to keep digital business records and submit quarterly updates to HM Revenue and Customs (HMRC) under Making Tax Digital (MTD) for Income Tax. This is one of...
Background The Economic Crime and Corporate Transparency Act 2023 (ECTA) introduced robust new laws to fight corruption, money laundering and fraud. The changes required as a result of these new laws are being introduced in stages, and contain amongst them the need to verify the identity of individuals acting as company directors and those being a person...
Chancellor of the Exchequer, Rachel Reeves, held the Spring Statement on Wednesday 26 March 2025. In the run up to the event, the Chancellor stated that she ‘remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support...
What is MTD for IT? Making Tax Digital for Income Tax has been designed to increase the efficiency of the tax system. It will require self-employed businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software. It will be phased in from April 2026. For these...
Introduction The Financial Reporting Council have amended Financial Reporting Standard 102 (‘FRS102’) to incorporate updated requirements when accounting for lease contracts (Section 20 of FRS102). There are minimal changes for lessors, so this article concentrates on the position of the lessee’s perspective, with the key objective being to introduce you to the forthcoming changes...
Contract Revenue The Financial Reporting Council has amended Financial Reporting Standards 102 (‘FRS102’) and 105 (‘FRS105’) to incorporate updated requirements when accounting for contract revenue. This article considers the changes, with the key objective being to introduce you to the new requirements which are effective for accounting periods commencing on or after 1 January...
The UK government has recently published changes to legislation that increase the monetary size thresholds that are applied when determining whether your business qualifies as a micro, small or medium-sized entity. The changes come in to effect on 6 April 2025 and apply to companies and limited liability partnerships registered in the United Kingdom,...
