Tax Accountants

If your e-commerce business is based in the UK and your sales are below the £90,000 VAT registration threshold, you are not required to register for VAT. However, selling through platforms like Amazon or eBay involves additional considerations because of the Marketplace Facilitator Rules, which impact how VAT is charged and collected. Let’s explore these rules and why it might be beneficial for your business to voluntarily register for VAT.

Auto-enrolment is a government initiative designed to help UK workers save for retirement by automatically enrolling eligible employees into a workplace pension scheme. It simplifies the pension process, ensuring more employees contribute to their future financial security. Since its introduction as part of the Pensions Act 2008, this system has made it easier for millions of people to build up their retirement savings without needing to take action themselves.

Saving tax through pension contributions is one of the most effective ways to reduce your tax bill while building a retirement fund. In this section, we’ll walk through three practical examples that show exactly how much tax you can save depending on your situation: as an employee, a self-employed individual, and a company director receiving contributions from your own limited company.

The world of self-assessment tax returns may appear somewhat confusing, particularly if you are a self-employed professional. For that reason, this post provides a simplified guide on how best to prepare your return for the 2023/24 tax year. From personalizing your return to the calculations you will need to make, we have you covered.

Imagine this: You’ve just finished a whirlwind year of steering your company through the highs and lows of business. As a director, you've worn many hats, from strategic planner to financial overseer. Now, it's time to review the financials, and you notice a curious figure on the balance sheet—a ‘Director’s Loan Account’ (DLA). Is it your triumph, reflecting strategic use of company funds, or could it lead to trouble if not managed correctly?

Everyone dreams of becoming their own boss one day. The allure of pursuing your passion, setting your hours, and building something from the ground up is what drives many to start their own business. However, the reality is that starting a business often comes with financial challenges, and making a loss in the first year is more common than most people think. But there’s good news – UK tax laws offer relief if you made a loss in your first year of self-employment.

Once upon a time, there was a small business owner named Tom, who ran a modest but thriving furniture shop in the heart of his town. After years of hard work and steady growth, Tom’s turnover finally reached the VAT registration threshold. His accountant advised him that it was time to register for VAT.

As a self-employed individual, you may also invest in other businesses. There are numerous tax reliefs and reducers available that can significantly lower your tax liability. These reliefs apply not only to your business income but also to any investments you make in other businesses, providing a valuable opportunity to maximize your tax savings.

A benefit in kind in the UK can be defined as all that one gets from his or her employer, other than in cash form and which bears value. Most benefits in kind are always taxable, which means that one would be obliged to pay tax on the value of such benefits. There are a number of tax-free benefits in kind that may be enjoyed both by the employee and the employer.

In simple words, DRC is an accounting mechanism for accounting of VAT that finds its principal application in the building and construction industry. The major reasons for its introduction are avoidance of VAT fraud, which is mainly caused by a missing trader. The liability to account for VAT in this mechanism has been shifted from the supplier to the buyer. That means instead of the supplier charging it, VAT should be accounted for by the customer himself. It can, however, be accounted for and reclaimed on the same VAT return.

Being a CIS subcontractor in the UK has its privileges, which enable you to claim a wide range of business expenses against your taxable income, hence bringing down your tax bill. HMRC has laid down clear rules on what is allowed and what is not; thus, being in the know will ensure that you comply with the rules and at the same time avoid paying more than you actually need to pay in tax.