There is a stamp duty land tax (SDLT) deadline on the horizon – from 1 April 2025, there are changes to both the residential SDLT threshold and that applying to first-time buyers. Completing a purchase before that date could save the buyer £2,500 in SDLT. For a first-time buyer, the potential savings are more. Residential […]
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Tax due under Self Assessment for 2023/24 should have been paid in full by midnight on 31 January 2025, along with the first payment on account for 2024/25. Financially, January is a difficult time for many people and they may be unable to find the funds to pay all the tax that they owe. Where
Action you can take if you are struggling to pay your tax Read More »
Under payrolling, employers deal with taxable benefits provided to employees through the payroll, treating the taxable amount of the benefit like additional salary and deducting the associated tax from the employee’s cash pay. Where a benefit is payrolled, the employer does not need to report it to HMRC via the P11D process after the end
Mandatory payrolling – what will it look like? Read More »
Under Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), sole traders and unincorporated landlords within its scope will be required to keep digital records of their trading and/or property income and provide quarterly updates to HMRC using MTD-compatible software. Its introduction is being phased in. Phase 1 – April 2026 start date
Extension of Making Tax Digital Read More »
One of the key announcements in the Autumn 2024 Budget was the rise in employer’s National Insurance contributions from 6 April 2025. Since then, the rate of secondary Class 1 National Insurance contributions has increased by 1.2 percentage points, from 13.8% to 15%. In a further blow, the secondary threshold above which employer contributions become
National Insurance for employers to rise Read More »
Entitlement to the full state pension depends on having sufficient qualifying years. Where a person reaches state pension age on or after 6 April 2016, they need 35 qualifying years for a full state pension. If they have less than 35 qualifying years but at least 10, they will receive a reduced state pension. A
Employers looking to spread some seasonal cheer can do so in a tax-efficient manner by taking advantage of the exemptions for annual parties and functions and trivial benefits. Christmas parties The tax exemption for annual parties and functions will only apply to a Christmas party if the following conditions are met. Some points are
Tax-efficient Christmas parties and gifts Read More »
If you pay tax through PAYE, as will be the case if you are an employee or a pensioner, you may need to complete a self-assessment tax return if you have other sources of income, such as income from property or investments or self-employment. If at least 80% of the tax that you owe is
File your tax return by 30 December to pay what you owe through PAYE Read More »
When starting a business, there are a number of ways in which this can be done. Options include operating as a sole trader, forming a partnership or setting up a limited company. Of these, operating as a sole trader is the simplest. Taxes you must pay If you run an unincorporated business as a
Setting up as a sole trader Read More »
In personal and family companies, the lines between the company’s finances and the director’s finances may become blurred. A director may withdraw money from the company for personal use or may lend money to the company. The company may pay some of the director’s personal bills, and the director may personally meet some company expenses.
Overdrawn director’s loan account – must your company pay tax on the balance? Read More »