Guides tagged with "hmrc"

How to Take Money Out of a Limited Company

There are several ways to take money out of a limited company, each with different tax implications. I’ll summarise the main options below, but feel free to get in touch if you’d like tailored advice. Loan Repayments If you’ve loaned…

An Overview of the New State Pension

Note: This blog relates specifically to the New State Pension, which applies to: Men born on or after 6th April 1951 Women born on or after 6th April 1953 If you were born before these dates, you’ll be entitled to…

An Overview of Child Benefit

Child benefit is available to any parent, but if you earn over a certain amount you may need to pay some or all of it back. In this guide, we’ll explain who can claim, how much you’ll receive, and when…

How to Close a Company

It’s a sad fact that many businesses close within their first year. Not all closures are negative - some business owners move on to new ventures, sell the company, retire, or return to employment or self-employment. Whatever the reason, there…

How to Pay Your Corporation Tax Bill

Any company that makes a trading profit will need to pay Corporation Tax. For most small businesses, this is a straightforward process - but it’s important to understand the deadlines and how to make payments correctly. Corporation Tax Rates for…

Claim Back Costs When Working from Home

Working from home can lead to extra costs - from heating and lighting to phone bills and internet usage. Fortunately, there are ways to claim tax relief on these expenses. In this guide, I’ll outline three common methods and help…

Understanding how your personal tax liability is calculated

The first time you get your personal tax return calculation it might be a little bit confusing. The way that it is presented is very logical to us accountants, but without knowledge of the intricacies of the tax system, then…

Tax Returns for English as Second Language Teachers

One of my oldest friends, Emma, teaches English as a second language to online students. She mentioned recently that questions around tax and accounting often come up on her teaching groups, and so I’ve written this article to help those…

Understanding Income Tax and National Insurance

Income tax is one of the simplest taxes to understand, but many of us may not have been aware of how it works before we really start to look into it. I would include myself in this, even after I…

How to Pay Your Personal Tax Bill

The end of January marks both the deadline for filing your personal tax return and, most importantly, payment. Paying Your Tax Bill We are often asked how to pay the tax bill. Previously it used to be quite complicated, but…

Why have I got two Corporation Tax returns?

If you are in your first year of trading as a limited company it is likely that your financial year runs slightly longer than 12 months. If you set up on the 15th of January 2026, for example, your…

Understanding National Insurance

National Insurance is collected by HMRC to provide state support for the sick, unemployed and retired. One of the main reasons you may want to ensure that you have made enough National Insurance contributions is to ensure you qualify for,…

VAT Basics Part 1

Everyone has probably heard about VAT but it is perhaps not something that everyone will have an understanding of how it functions. In the first of this three-part series on VAT, I talk about the basics of what it is…

VAT Basics Part 2

In the first part of this series, we looked at the basic principles of VAT and how it is paid to and from HMRC.  Now we are going to talk about whether you should register for VAT. Do I need to…

VAT Basics Part 3

In the first part of this series, we discussed the mechanics of who pays VAT. The second part discussed when you need to register, whether you might choose to do so voluntarily and the different rates of VAT. In the final part,…

What Is Making Tax Digital for Income Tax and Will It Affect Me?

HMRC’s Making Tax Digital (MTD) programme has been in development for several years. It’s already in place for VAT returns, and the next phase will extend to Income Tax Self Assessment (IT), with partnerships and Corporation Tax being further down…

How to Pay Your PAYE Bill

If you run a Pay As You Earn (PAYE) payroll within your company, you'll need to deduct any National Insurance (NI) contributions made by your employees, along with any Income Tax for which they're liable, and instead pay it directly…

Self-assessment tax returns – payments on account

When you submit your personal self-assessment tax return, you may be asked by HMRC to make payments on account. This can be slightly confusing as you are being hit with your tax bill and then being asked to pay additional…

When is my tax bill due?

If you are required to submit a self-assessment tax return, your bill for the year you are submitting becomes due on 31 January in the year following the end of the tax year. Tax years run from 6 April one…

What happens when I enter the higher tax bracket?

Entering the higher tax bracket (total income over £50,270 for the 2022/23 tax year) could be a sign of a promotion or pay rise, or your self-employed business moving from strength to strength. However, there are some consequences to this…

When You Don’t Need A Tax Return

In an earlier blog I wrote about tax returns giving examples of who might need to complete a tax return. This month I’m going to talk about when you might not need to complete a tax return. HMRC have been trying…

Property rental basics

If you’re renting out a property, then this is a taxable activity, and you need to complete an annual self-assessment tax return. There are different requirements if you are renting out property through a company, we will just deal with…

What is my tax code?

Everyone will have a tax code but not many people will understand what it means or what it is used for. I will attempt to give a short explanation of how tax codes work. Generally, most individuals in employment will…