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Mileage Allowances – What Is Tax-Free

Employees are often required to undertake business journeys by car, be it their own car or a company car, and may receive mileage allowance payments from their employer. Up to certain limits, mileage payments can be made tax-free. The amount that can be paid tax-free depends on whether the car is the employee’s own car[…] Read more »

Tax-Free Allowances For Trading And Property Income

New allowances were introduced from the 2017/18 tax year for trading and property income. The availability of these allowances means that those with low levels of trading or property income may not need to report this to HMRC. Trading allowance The trading allowance is £1,000 for both the 2017/18 and 2018/19 tax years. If you[…] Read more »

Making Tax Digital For Businesses

Reporting taxes just once a year is on its way out. Some businesses will need to start making quarterly tax submissions from 2019. Although it may mean you have to make changes, it can actually help streamline tax and accounting. Summary: In a bid to simplify tax reporting, HM Revenue & Customs (HMRC) are moving[…] Read more »

Reporting Benefits In Kind For 2017/18

Taxable expenses and benefits provided to employees during the 2017/18 tax year need to be reported to HMRC on form P11D unless: • the benefit has been payrolled; • it has been included in a PAYE Settlement Agreement; or • it is covered by an exemption. The form must be filed by 6 July 2018,[…] Read more »

Tax Code Changes For 2018/19

Tax codes are the lynchpin of the PAYE system – unless the tax code is correct, the PAYE system will not deduct the right amount of tax from an employee’s pay. The tax code determines how much pay an employee may receive before they pay any tax. The most straightforward scenario is that the person[…] Read more »

Paying Expenses – What Can You Ignore For Tax Purposes?

Employees often incur expenses when doing their job. For example, an employee may be required to attend a meeting with a client or supplier and may incur travel expenses and possibly subsistence expenses in doing so. The employee will often incur the expense in the first instance and reclaim the amount from their employer, in[…] Read more »

Paying Dividends – Are They Properly Declared

For many personal and family companies, the most tax-efficient way to extract profits is to pay a small salary and to take anything in excess of this as a dividend. However, in order to benefit from the more favourable tax rates and lack of National Insurance attached to dividends, the dividend must be properly declared.[…] Read more »

Cash Basis For Landlords

Since 6 April 2017, the cash basis has been the default basis for qualifying landlords running an unincorporated property business. Cash basis v accruals basis The cash basis is easier for a non-accountant to understand, as it simply takes account of money in and money out. Income is recognised when it is received, and expenditure[…] Read more »

What Is Making Tax Digital?

Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts. HM Revenue & Customs (HMRC) want to be one of the most digitally advanced tax administrations in the world – improving efficiency, effectiveness and ease of compliance. The plans signal the[…] Read more »

Correcting VAT Errors

Making a mistake in your VAT return is easily done. Maybe you missed something out accidentally or added up some figures wrongly. However, should this happen and you discover that you have made a mistake in a return which you have already filed, don’t panic – it is easy to put things right. Providing the[…] Read more »