Blogs

Rent a Room Relief is a tax relief that could significantly reduce your tax liability if you rent out a furnished room in your home. Rent a Room Relief is a scheme offered by HMRC, allowing you to earn up to £7,500 per year tax-free by renting out a furnished room in your primary residence. This relief is designed to encourage people to make the most of their unused space, providing a little extra income without the burden of additional tax.

As a sole trader, your business is your livelihood. Whether you're a consultant, a freelancer, or a small business owner, the income you earn is directly tied to your ability to work. But have you considered what would happen if, due to an unforeseen illness, injury, or accident, you were suddenly unable to work? Without a backup plan, your income could disappear, leaving you and your family in a critical financial situation.

I have had a few requests lately for advice on purchasing an electric car as a limited company and I thought I’d do a blog about it to help our clients understand. Historically, buying a car through your limited company was a NO NO, because of the additional benefit in kind tax that you will have to pay on the personal use element.

Do you have a government gateway account for your own personal tax affairs and/or your business?

If not, I would encourage all our clients to get an account and request access to all their tax profiles. This will give you much better oversight of your tax affairs, and you can plan to ensure that your taxes are paid on time. It can also save you from having to phone HMRC and spend a lot of time on the phone, when you could have resolved it quickly and easily through your online account.

Anlo Assist is for anyone who has struggled to understand HMRC on tax residency (let’s be honest - who hasn’t?!) Are you worried that you might be due tax in two (or more) jurisdictions and unsure where you are tax resident? Does your uncertainty leave you worried that you are not acting on your tax obligation in the United Kingdom?

Renting out a property can be extremely rewarding, but it can also cost a lot of money, especially initially. Luckily, a lot of expenses can be claimed as allowable expenses which Buy-to-Let (BTL) landlords can deduct from their profits and so decrease their taxable income, minimising their tax bill. Many BTL property investors invest in property as an additional income or business, and yet fail to keep a proper record of their expenses. This can leave them overpaying on income tax either in their self-assessment or in their company accounts.

It’s July, notable for day-long sunshine, high temperatures and tax payments! Sadly only one of those seems to apply to the UK this year, and it’s not the beautiful summery weather…

The 31st July marks the final date for your tax prepayment if you are self employed and submit a self-assessment return. There are two exceptions to this rule; if your last self-assessment tax bill was £1,000 or less, or, you have already paid more than 80% of your outstanding tax bill.

The rules allowing you to claim tax relief on expenses connected with your employment are extremely restrictive. You are denied tax relief on almost all types of expenses that are not ultimately paid by your employer.

This is because, as an employee, you must show that any expenditure is incurred wholly, exclusively, and necessarily in performing the duties of your employment.

In the rapidly evolving world of business, staying ahead of the curve means embracing tools and technologies that streamline operations and drive growth.

As your accountants, we're always on the lookout for ways to help you achieve greater efficiency and success while reducing your admin overheads and stress!

Long service awards are a great way for employers to recognize and reward the dedication and commitment of their employees. It seems like such a long time to work for a business, but as a director of a company I realised yesterday that I have been working for Anlo for 15 years already 😊.

Time really does fly when you are having fun 😊

It’s been some years since we last looked at the basics of Value Added Tax (or VAT for short) so we thought that a recap would be useful for businesses who may not have had to deal with it previously.

VAT is a system that taxes what people spend and is administered by HMRC. The consumer pays VAT on the item that they buy, but businesses act as agents for collecting the VAT paid by the consumer.

You can now file your self-assessment for 2023/2024. If you haven’t already, please get in touch and we will help you. Filing a self-assessment tax return can seem daunting, but with the right documents and information at hand, the process becomes more streamlined.

Let’s look at the essential documents you will need to file your self-assessment:

Tax planning is an integral part of financial management for any household, and for married couples in the UK, there’s a valuable strategy that can help optimise tax liabilities – transferring a portion of the personal allowance between spouses.

Often when a company recommends a product or service, you’ll find yourself asking - what’s in it for them? In this case the answer is better service at an excellent better price. Now, you know that we love Xero; it’s incredibly well-featured and constantly evolving to meet the demands of small to medium enterprises but it’s not always the most appropriate option for some companies.

On the 1st of May this year, Companies House is increasing its fees across the board. Some of these changes are quite substantial. As a consequence, for our clients on retainer for whom we manage their Companies House information and filing, we have no choice but to increase our retainer fee to reflect these increases.

Running a business comes with a multitude of responsibilities, and one of the most crucial aspects is managing your employees' payroll.

Whether you're just starting out or have been in business for a while, understanding how payroll works in the United Kingdom is essential to ensure compliance with regulations and maintain smooth operations. Let's break it down into simpler terms, starting with the basics.

In January, we had the pleasure of engaging with a group of dynamic individuals, each with their unique businesses, seeking clarity on how to maintain comprehensive accounting records. 

Here's a distilled version of their queries and some practical advice for seamless record keeping:

I thought it would be nice to write about something other than tax and year-ends. Yes, they’re important, and yes I’ll continue to write about them, but a change, they say, is as good as a rest. (Personally, I’m not sure about that, but whatevs…)

As thoroughly modern accountants we have wholeheartedly embraced technology, you may have noticed this! In addition to our client-facing systems we use technology ourselves to stay on top of our business.

Many of you are considering rewarding yourselves, as directors, and your dedicated employees with gift vouchers. This gesture not only boosts morale but also demonstrates appreciation for the hard work and commitment throughout the year.

But  - it's crucial to understand the tax implications of such gifts to ensure compliance with HMRC regulations and to optimise tax efficiency for both your company and its recipients.

As an accountant working closely with various businesses and individuals across the UK, one question that frequently arises is whether specific expenses can be claimed as tax-deductible. One such expense that generates curiosity among clients operating through Limited Companies is the purchase of reading glasses (I wear glasses myself and I can’t work without them).

So let's explore if you can claim reading glasses as a tax-deductible expense, in line with HM Revenue and Customs (HMRC) guidelines.