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Brexit seems to have taken a back seat because of the pandemic, but now that the UK has finally left the EU with a trade deal, what will the impact of Brexit on businesses? It’s official, the UK is no longer a member of the EU. It has never been more critical to consider how the rapidly changing political environment will impact your business In short, every industry is affected by Brexit due to the potential economic impacts and manpower…

What was Brexit? The UK formally left the EU on 31st January 2020. At that point, a transition began that ended on 31 December 2020 Key from a business perspective is that, following the end of the transition period, Great Britain is no longer a member of the EU’s single market and customs union. These enable the EU member states to function as a single trading area with no tariffs or border checks, the little requirement for import/export documentation, and…

Making VAT tax digital HMRC’S Making Tax Digital plans to involve getting small businesses and the self-employed to complete digital tax records and returns, with the eventual aim of going completely paperless. HMRC says that MTD is how they’re delivering on making it “easier for individuals and businesses to get their tax right and keep on top of their affairs.” VAT registered businesses with a taxable turnover of more than 85,000 must follow the rules for “Making Tax Digital” by…

What is bankruptcy and how bad can it be? Bankruptcy is a legal process, when people cannot repay debts to creditors may seek relief for some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often imitated by the debut. Bankruptcy in the UK relates only to individuals and partnerships. Companies and other corporations enter into differently named legal procedures, liquidation and administration. However, the term `bankruptcy` is often used when referring to companies…

With Inheritance Tax (IHT) was introduced over approximately 30 years ago and broadly charges to tax certain lifetime gifts of capital and estates on death. With (IHT) came the concept of `potentially exempt transfers` (PETS) make a lifetime gift of capital to an individual and, so long as you live for seven after making the gift, there can be no possible IHT charge on it whatever the value of the gift. The rules create uncertainty until the seven year period…

When you sell or “dispose of” something you claimed capital allowance on, include the value in your calculations for the accounting period you sell it in. Dispose of an asset You can dispose of an asset if you  Sell it  Give it away as a gift or transfer it to someone else Swap it for something else Get compensation for it- like insurance payout if it’s been lost or destroyed Keep it, but no longer use it for your business…

What is IR35 and what does it mean? Self-Employed contractors working through a limited company can benefit from tax advantages, but IR35 rules change the way this can be done lawfully. IR35 seeks to make sure contractors working in the same way as permanent full-time or part-time employees pay the same tax and national insurance as an employee to crack down on tax avoidance. What is IR35? IR35 is defined as off-payroll working by HMRC. IR35 is shorthand for the…

What is the SA302 form? SA302 is a statement given by HMRC that provides evidence of your earning. It is, in every practical sense, HMRC’s presentation of an individual’s income tax calculation for that given tax year. You will be issued it following the submission of your Self-Assessment tax return. Provided that you or your accountant submit your tax return online, you are able to extract your own tax calculation and other SA302 information for the last four year if…

A flat rate expense is a set amount of money that an unemployed person can get tax relief, on for work expenses they can incur. The amount allowed is decided on by the tax office. It’s important that you claim for your flat-rate expenses to avoid paying too much tax and receive a tax rebate if your owed one. Flat rate expense deductions apply to those who work in trades and industries, in which there are common and essential job-related…

Why should you get an accountant?   Running a small business often means that in order to save money, you need to do a lot of the tasks that come with business ownership by yourself. However, certain tasks are always best left to the professionals, especially accounting. While there are several accounting software tools on the market now that you can take advantage of doing your own books. It’s always best to have a professional accountant by your side who…