One of the most crucial decisions you’ll have to make is whether your firm will function as a sole trader or as a limited company in the future. The structure you choose can affect practically every element of your business, including how much tax you pay, how much money you can make, and even what happens if your firm runs into financial difficulties. What works for one business may not always work for another. As a result, it’s critical that…

Following the implementation of Making Tax Digital (MTD) for VAT in 2019, HMRC announced intentions to alter the VAT penalty system to align it with the penalties for late income tax and corporation tax filing and payment. HMRC announced in January 2022, after multiple delays, that a new penalty scheme would begin in January 2023. We’ll go over the current rules and what to expect when the new points-based system goes live. Current VAT penalties for late payments Late payment…

What Is Double Taxation? Double taxation is a tax principle referring to income taxes paid twice on the same source of income. It can occur when income is taxed at both the corporate level and personal level. Double taxation also occurs in international trade or investment when the same income is taxed in two different countries. It can happen with 401k loans. What is the Process of Double Taxation? Since corporations and their stockholders are regarded independent legal entities, double taxation is…

The National Living Wage (NLW), the National Minimum Wage (NMW), and the Living Wage all sound confusingly similar, so understanding how they affect your business isn’t always easy. We have put together this article to help you get grips with it all, and avoid any penalties as a result of not paying staff the right amount. What is the National Living Wage? Unveiled in the Summer Budget of 2015 by then-Chancellor George Osborne, the National Living Wage (NLW) became law…

Plastic Packing Manufacturers and importers   Manufacturers and importers of plastic packaging having less than 30% recycled plastic content will be subject to the UK’s Plastic Packaging Tax (“PPT”), which will be levied at a rate of £200 per metric tonne if specified criteria are fulfilled. When packaging is considered plastic Plastic is defined as a polymer material to which additives or substances have been added for the purposes of the Plastic Packaging Tax. This excludes cellulose-based polymers that have…

Independent contractors, consultants, and freelancers are self-employed persons who work for firms on a temporary basis. Hiring contractors allows businesses to have access to specialised skills, expertise, and experience without committing to a full-time employee. This is frequently quite enticing. if you wish to be a contractor, you must first decide the legalised or legal structure you will use for your firm, as well as which accounting services for contractors you will require. The legal structure you pick influences how…

Engaging with the taxman is hardly anyone’s favourite task. This, however, might be changing thanks to a revamped HMRC app that allows users in the UK to check their income and how much tax they need to pay. In the HMRC app, you can see details about your job and salary and how much income tax, tax-free amount and take-home pay are calculated. You can also renew your tax credits. The HMRC tax calculator tells you how much National insurance…

In June 2016, the UK government adopted confirmation statements to replace the clumsy annual return AR01 form. The confirmation statement is quite similar to the authorization statement and performs roughly the same thing, except it is faster and easier to file. What is a confirmation statement and what is it used for? A confirmation statement ensures that Companies House has the most up-to-date information concerning a limited company. its not intended to be means of information your organisation about any…

Dividend payments might be perplexing, especially because they are taxed at a different rate than your other income. We define dividends, who is eligible to receive them, and what you need to know about dividend tax.   What is a dividend? Dividends are a tax-efficient way to withdraw funds from a limited corporation. After subtracting the amount payable for Corporation Tax, the corporation distributes dividends to shareholders from earnings that are left over. Dividends given out cannot exceed the companies…

Accounting has always been impacted by digital technology, but digital technology, in particular, is set to transform how accounting is done on a basic level. Although there is much to be written about how blockchain works, accountants should be aware of its primary purpose: to keep a ledger of financial data and to transfer ownership of assets in a secure and verifiable manner. A distributed ledger is built into the architecture of blockchain technology, ensuring the trust of all parties…