PAYE For Employers: Manage Company Payroll
PAYE (Pay As You Earn) is a system used in the UK to collect income tax and National Insurance contributions (NICs) from employees’ wages. As an employer, understanding PAYE is crucial for managing your payroll and tax obligations. PAYE for employers can quickly become complex. But provided you understand HMRC’s rules and your obligations, you […]
Tax on Reselling & Side Hustles
Most of us have sold something online using the likes of Ebay, Vinted or DePop. But do you know if you have to pay tax on the money you made? UK tax rules on online selling, reselling or trading will depend largely on how active you are as a seller and how much profit you’ve […]
Personal Tax Allowance 2024
Every taxpayer in the UK has a personal tax allowance. Whether you’re an employee checking that you’re being paid correctly, or you’re self-employed and wanting to know how much to set aside for your annual self-assessment tax bill, it’s important to understand how your tax liability is calculated. Your personal tax allowance is a key […]
Emergency Tax Code Guide for Employers
Ensuring that new employees are registered to pay tax forms an important part of an employer’s role in fulfilling their obligations to HMRC. This includes how and when to use emergency tax codes for new starters. In this guide for employers, we explain the emergency tax rules, how they work, how to use them and […]
Marriage Allowance: How to Claim
When assessing your liability to income tax, much will depend on the extent of any personal allowance that you’re entitled to claim for the relevant tax year. If you’re either married or in a civil partnership, your spouse or civil partner may be able to transfer part of their allowance to increase your tax-free threshold, […]
Tax Relief: How to Claim & Reduce Your Tax Bill
Understanding how tax relief works in the UK can help you to minimise the amount of tax payable on any income received as either an employed worker, or when working for yourself on a self-employed basis, helping you to maximise your take-home pay or net profit. While there are broadly similar principles in place when […]
Employers’ National Insurance Rates 2024
Meeting your obligations towards HM Revenue and Customs (HMRC) forms an important part of your duties as an employer in the UK. This includes payment of Employers’ National Insurance alongside your employees’ National Insurance Contributions (NICs). The following guide examines the rules relating to employers’ national insurance contributions, from what these are for and who […]
Employment Allowance: Save on Employer NICs
Running a small business in the UK comes with its own set of tax considerations. One helpful benefit for eligible employers is the Employment Allowance. If you’re liable to pay employers’ Class 1 National Insurance, eligible employers can reduce this liability by up to £5,000 per tax year. Below we look at the Employment Allowance […]
£40000 After Tax in 2024
£40,000 after Income Tax is deducted is £34,514, before National Insurance and any other relevant deductions are made. Combining Income Tax and NICs deductions, you are likely receive around £30,867 after tax on a £40,000 salary. This is however an estimate and can vary depending on your specific tax code and circumstances. In this guide, […]
Capital Gains Allowances & Reliefs 2024
The amount of capital gains tax (CGT) you pay can be reduced by using available capital gains allowances and reliefs. What is chargeable to capital gains tax? Capital gains tax becomes payable when the disposal of certain categories of asset leads to a profit, otherwise known as a ‘gain’. It is this gain […]
HMRC Self Assessment: Tax Return Guide
Being self-employed carries with it a number of financial responsibilities, including the requirement to report your earnings to HM Revenue and Customs (HMRC) under the self assessment regime. It’s important to meet your obligations as a self employed individual to ensure you are paying the correct amount of tax and to avoid paying a penalty […]
UK Resident Receiving Inheritance From Abroad
If you have inherited money from overseas, you will need to check the tax position and whether there is a UK tax liability on the inheritance. The tax rules on receiving inheritance money from abroad can quickly become complex. In this guide, we look at when liability to UK tax on inheritance from abroad arises, […]
How Do National Insurance Contributions Work?
National Insurance Contributions are a deduction that the majority of employees and workers will be accustomed to seeing on their payslips, and a mandatory tax payment that the majority of employers and the self-employed will be accustomed to paying. Still, many of us will not be familiar with how this is calculated and how much […]
Voluntary National Insurance Contributions
Gaps in your National Insurance record can leave you ineligible for a State Pension and certain benefits. You may be able to fill these gaps by making voluntary National Insurance contributions. Under current rules, you have until 5 April 2025 to ‘buy back’ any missing national insurance years from 2006 to 2016 using voluntary national […]
Downsizing Relief: Cut Inheritance Tax Bill
Downsizing relief can offer homeowners an effective way to lower inheritance tax (IHT) liability, by moving to a smaller home. In this guide, we look at what downsizing relief is, how it works and who can claim it. What is downsizing relief? Downsizing relief is a form of tax relief that can enable […]
What are UK Capital Gains Tax Rates?
How do you know which capital gains tax rate applies to you? There are four main considerations to bear in mind: What category of asset has been disposed of? Has the disposal led to a gain? What is the financial value of that gain? What is the personal tax position of the individual who made […]
HMRC Tax Investigation: What To Expect
HMRC tax investigations into whether a person or business have met their tax obligations vary greatly depending on the details of the individual case, from relatively informal checks to a more in-depth investigation into your tax situation. It may be that an HMRC tax investigation is opened to confirm that the information supplied in a […]
What is Capital Gains Tax on a Buy to Let Property?
As with any form of income, buy to let property investment carries various tax implications, including that of capital gains tax. Buy to let property is generally seen as a medium to long term investment, building on the initial cost of purchase, legal fees and refurbishment to ideally enjoy regular rental income and eventually, a […]
Capital Allowance Rates 2023
Understanding the rules for capital allowance and how those rules apply to your business’s circumstances can be a complicated process with an ongoing need to stay up to date with changes in tax legislation, although taking professional advice can help to clarify your tax situation. One important element in this process is an awareness of […]
How To Do Self-Employed Accounts
If you work for yourself as a sole trader, you’ll need to familiarise yourself with the rules on self-employed accounts. Sole traders have to keep financial records relating to the income generated and expenses incurred while doing business. At the end of each tax year, you will be required to report your business income and […]