Your Guide to Successfully Appealing a Tax Penalty

August 24th, 2023 | Categories: Tax

Dealing with a tax penalty can be a daunting experience, but fear not! In this comprehensive blog post, we will walk you through the process of appealing a tax penalty step-by-step. Whether it’s a late filing, inaccurate return, or any other reason, we’ve got you covered. So, let’s dive in and discover how to effectively navigate the appeals process and potentially turn the tables in your favour. Understanding the Reasons for Tax Penalties Tax penalties can arise from various situations, such as late filing, inaccurate returns, late payment, or failure to maintain accurate records. Familiarising yourself with the specific reasons […]

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Should I register for VAT? A guide to understanding the need for VAT registration.

August 18th, 2023 | Categories: Tax

When it comes to running a business, understanding VAT regulations is crucial. VAT, which stands for Value Added Tax, is applied to the majority of goods and services provided in the country. In this blog post, we will delve into the concept of taxable supplies for VAT purposes and the importance of VAT registration for businesses. Whether you are a small business owner or a budding entrepreneur, grasp the essentials of VAT to ensure compliance and maximise your financial benefits. What Are Taxable Supplies? Taxable supplies refer to goods or services that are not exempt from VAT and are made […]

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HMRC has closed its phone lines – How to make contact

August 4th, 2023 | Categories: News, Tax

Back in June (with only four days’ notice) a trial to redirect Self Assessment (SA) queries from HMRC’s phone helpline to its digital services began. This trial is set to run for three months – up to the 4th of September 2023.  This means that taxpayers are relying on HMRC’s online guidance, digital assistant and web chat over the summer months, rather than the helpline for support. Why is this happening? HMRC is behind in answering its post and finalising problems including investigations, some of which have been waiting a year to be settled. Their annual performance report for 2022/23 […]

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Utilise the deduction for paid and reimbursed expenses

July 28th, 2023 | Categories: Employment, Tax

When working, incurring expenses is sometimes necessary. Depending on the job, these costs can be for various different things such as travel and lodging or membership fees and subscriptions. Typically, when an employee has incurred the cost, they will file an expense claim to have it reimbursed by their employer. Sometimes companies also offer payments at a set rate for certain expenses. It’s important to understand your employer’s system and file claims correctly if you need to claim expenses for anything. That way, you can be sure you’ll get reimbursed promptly and without any issues. Reimbursed expenses As an employer, […]

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Number of tax investigation enquiries are back to pre-pandemic levels

July 19th, 2023 | Categories: Tax

Reports show that tax investigations carried out by HMRC are back to pre-pandemic levels… and some. Tax investigation activity by HMRC has reflected the turbulence in the economy over the past few years. This meant that there was a significant reduction in activity whilst both business owners and HMRC themselves worked to manage the changes that came about during the COVID-19 pandemic. In the mid-part of 2020, there was an initial dramatic reduction in the number of claims made against our Tax Fee Protection Insurance Policies. However, this was followed by a steep increase in claims towards the end of […]

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Full Expensing

July 7th, 2023 | Categories: Tax

Full expensing, which replaced the super-deduction on 31st March 2023, makes it far easier for companies to claim immediate deductions on qualifying expenditures. It’s a beneficial incentive for businesses! Unfortunately, unincorporated businesses can’t take advantage of full expensing. However, the Annual Investment Allowance (AIA) could be the perfect alternative, with businesses able to claim a full 100% deduction on qualifying expenditures up to a maximum of £1 million. This is excellent news for business owners looking to invest in their companies and maximise their financial resources! Nature of full expensing Full expensing is excellent news for businesses as it allows […]

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Gift Aid Clawback

June 13th, 2023 | Categories: Tax

Gift Aid is a great way of boosting the value of your donation, but if you’re not paying taxes, you could end up having an unwelcome surprise in the form of a bill from HMRC. If your financial situation has changed and you are no longer liable for tax, it’s important to look at how this affects any charitable donations you have been making. Gift Aid is a great way of boosting the value of your donation, but if you’re not paying taxes, you could end up having an unwelcome surprise in the form of a bill from HMRC. It’s […]

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Mileage Allowances

June 9th, 2023 | Categories: Uncategorised

What can you pay tax-free? The tax-free mileage allowance for employees using their own car is 45p per mile for the first 10,000 business miles they drive in a year. If an employee drives more than 10,000 business miles in a year, then the rate drops to 25p per mile for any additional mileage after that. For employees using a company car, the HMRC has set a different mileage rate which considers that the employee is using a company car. The tax-free mileage allowance for employees using a company car is 25p per mile for all business miles driven annually. It’s […]

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Capital gains tax on separation and divorce

June 7th, 2023 | Categories: Tax

Since 6 April 2023, the rules on no gain/loss transfers have been somewhat relaxed. Spouses and civil partners can continue to benefit from these tax breaks even after separation if certain conditions are met. The conditions include: The transfer must happen within two years following the date of separation or in line with any agreement reached by the couple on their financial arrangements. Both parties must also have been living in the UK at the time of transfer, and neither party can be a non-UK resident for tax purposes. It’s worth noting that these rules only apply to transfers between […]

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Pension Changes: All you need to know!

May 30th, 2023 | Categories: News, Tax

The Chancellor recently announced some significant changes to pension tax rules that will majorly impact those saving for retirement. The annual allowance for pension contributions is increasing, and the lifetime allowance – which limited the amount of money individuals could put into their pensions – has been abolished altogether. We’re going to break down these changes so you are all caught up with everything you need to know! Annual Allowances Any contributions to a registered pension scheme greater than an individual’s annual allowance will incur a tax charge. The annual allowance for the 2021/22 and 2022/23 tax years is £40,000; […]

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