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Operating a firm with two or more individuals or corporate members is known as a general partnership. There are numerous partnerships in a variety of industries, from the service sector to manufacturing to not-for-profits, just like there are in any other firm. General partnerships are a little strange since, despite feeling like a limited company in terms of people working together for the same enterprise, the tax procedure is different. In a limited corporation, directors typically get only a little…

HMRC intends to make adjustments to the VAT penalty system now that Making Tax Digital (MTD) for VAT is fully implemented for VAT-registered businesses. The new regulations will align the late submission and late payment penalties for VAT with those for income tax and corporation tax. The new MTD for VAT penalty system will apply from January 2023, but there is an existing penalty scheme in place. What is the current penalty for late VAT submissions and payments? If you…

Once an organisation has registered for payroll benefits, it is required to provide written notice to its employees explaining why they are receiving benefits and what this means for them. This can be done by payslip, email, or letter. Employees must be notified by the 1st of June following the conclusion of each tax year that they will not be taxed twice. This is because the company registered with HMRC to have their benefits paid out before the new tax…

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…