Blogs

Many clients often ask what they can claim for home office expenses when working from home, and how the rules differ between claiming as a sole trader versus as a director of a limited company. While the amounts you can claim may be similar, the criteria and evidence required are different depending on your business structure. Here's a breakdown of the key differences and what you need to know for each scenario.

As we approach the end of July, this is a timely reminder for those of you registered for Self Assessment: if your 2023/2024 tax return required you to make payments on account, your second prepayment may be due by 31 July 2025.

I want to bring to your attention some important developments that could impact your business, especially if you're a small or medium-sized enterprise (SME). Recent data from HMRC reveals that SMEs now account for 60% of the UK’s £46.8 billion tax gap—the difference between what HMRC expects to collect and what is actually paid. This marks a significant increase from 48% in 2019/20, making SMEs the only sector where the tax gap is still growing.

What You Need to Know for 2025–26. If you rent out a holiday home or short-term let—whether it’s in the Highlands, Cornwall, or anywhere in between—there’s a major tax change coming in April 2025 that could affect how much tax you pay and how you report it. And this affects individuals, companies, and trusts that own or sell FHL properties, whether in the UK or overseas.

As the world of digital currency and cryptocurrency continues to grow, it's essential to understand the tax implications of your investments. If you've received gains from digital currencies, you need to declare these on your tax return. HMRC requires that any gains or income from digital currencies be declared on your tax return. This includes cryptocurrencies like Bitcoin, Ethereum, and other digital assets. Failing to declare these gains can result in penalties and interest charges.

Transferring property to a limited company can offer benefits, including potential tax efficiencies and limited liability protection. But it also involves various costs and tax implications that need to be carefully considered. And each person’s situation is different. One of the main reasons people choose to transfer property to a limited company is because the interest portion of mortgage payments is fully tax-deductible for the company.

Income belongs to the sole trader, and it is the sole trader’s responsibility to account for the business properly and make sure the deductible expenses are accounted for. HMRC will take the money received as income and tax will be calculated only on the income received if the taxpayer does not prove/show expenses.

Did you know we can already prepare and calculate your tax liability for 2024/2025? This makes it easier to plan what you will be paying to HMRC in July 2025 as part of the prepayment, and then in January 2026 as the final payment.

We always start with our retainer client self-assessment returns first, but if you are ready to send us your information, please do. We love being prepared and getting the dreaded 'tax' out of the way!

As we approach the new financial year, we want to remind you of an important update regarding the minimum wage rates.

Effective from 1st April 2025, the minimum wage rates will be increasing.

The UK government is rolling out a significant change in the way self-assessment tax returns are filed, known as Making Tax Digital (MTD). This initiative aims to modernise the tax system, making it easier for individuals and businesses to keep on top of their tax affairs.

As we step into the new financial year, I thought it would be beneficial to discuss the Corporation Tax rates in the UK due to the recent changes. 

This information will help you plan and manage your finances more effectively. Additionally, if you have multiple companies, it's important to know how group relief can be utilised to optimise your tax liability.

If you're a VAT-registered business in the UK (accrual or cash basis VAT registration), you might be wondering when you can charge 0% VAT on your goods and services.

Let's break it down so you can get a handle on when you can apply this zero-rated VAT and how it works.

As we approach the end of the tax year, I wanted to remind you to review your pension contributions to ensure you're making the most of your yearly allowance for tax purposes. Topping up your pension funds before the deadline can help benefit from the tax and also help with your future.

The annual allowance is the maximum amount you can contribute to your pension pots in a tax year (from 6 April to 5 April) before you must pay tax. For the tax year 2024 to 2025, the standard annual allowance is £60,000. This includes contributions made by you, your employer, and any third parties.

As we step into the new year, it's time to remind you that the self-assessment tax deadline is fast approaching. By the end of January 2025, you need to have paid your self-assessment tax for the tax year 2023-2024. If you haven't yet sent us your information, don't worry. We've been keeping records and have reached out to those of you who we believe need to provide additional details. However, if you haven't heard from us and would like us to file your self-assessment, please get in touch as soon as possible.