Guides tagged with "hmrc"

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…

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?

Note: this post was last updated on 7th March 2025 HMRC have been working on their Making Tax Digital (MTD) program for several years. It has been implemented for VAT returns and they are looking to implement it for Income…

How to pay your Corporation Tax bill

Any company that makes a trading profit will need to pay Corporation Tax. The current rate is 19% of profits and is due 9 months and 1 day after the end of the company’s financial year. The tax return deadline…

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…

Claim back costs when working from home

Many of us will be working from home at the moment. This will incur extra expense, such as lighting and heating, water, telephone and many other costs. These costs can be claimed against your tax bill to reduce your liability,…

How to take money out of a limited company

There are a few ways to take money out of a limited company, which all have different tax implications. I will summarise them all briefly here, but please feel free to get in touch if you want to discuss any…

How to pay your personal tax bill

The end of January marks both the deadline for filing your personal tax return as well as the expected payment date. We are often asked how to pay the tax bill. Previously it used to be quite complicated, however HMRC…

Understanding National Insurance

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

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…

An overview of the New State Pension

Note: This blog is specifically related to the New State Pension which is for men born on or after 6 April 1951 and women born on or after 6 April 1953. Anyone born before this, would be entitled instead to…

An overview of Child Benefit

Note: Values in this post were updated in 2024. 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. Here I will talk you…

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…

How to close a company

It is a sad fact that many businesses fail in their first year and end up closing. Sometimes companies close for more positive reasons such as moving on to a new venture, selling the business, retirement, or moving back into…

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…

How to pay your PAYE bill

If you run a PAYE payroll within your company, you will need to deduct any National Insurance (NI) contributions made by your employees, along with any Income Tax that they may have to pay from the amounts that you pay…