Corporation Tax and Capital Allowances: Claiming Full Expensing & AIA For UK companies, capital allowances allow businesses to deduct capital expenditure from taxable profits — reducing their Corporation Tax bill. Plant & Machinery:Business-use assets such as machinery, tools, computers, vehicles, and certain fixtures. These typically qualify for capital allowances like AIA and Full Expensing. What […]
Capital Gains Tax (CGT) applies when you sell or dispose of an asset for more than you paid for it. This can include property that is not your main home, shares, cryptocurrency, or business assets. Annual CGT Allowance (2025/26)For the 2025/26 tax year, the tax-free allowance is: You only pay CGT on gains above this […]
Auto-Enrolment Duties for Employers: Workplace Pension ResponsibilitiesWho must be enrolled?You must assess each worker regularly.Criteria: Qualifying Earnings:These are the earnings between £6,240 and £50,270 (2025/26). The minimum 5% pension contribution applies only to this band, not the employee’s full salary. Minimum contribution rates (2025/26) Duties for new employersFrom your first employee, you have duties:
The Autumn 2025 Budget confirmed that employees who are required to work from home will no longer be able to claim tax relief for extra household costs. Right now, under section 336 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), employees can claim relief for extra costs caused by homeworking, such as […]
Starting 6 April 2026, a new student loan repayment plan, Plan 5, will be introduced by the Department for Education (DfE). This plan will apply to borrowers who began their courses in August 2023 or later and will follow a similar structure to existing Plan types 1, 2, and 4. Key points to note: Employers […]
When buying a rental property, you can own it personally or through a limited company. Each option affects how much tax you pay and how your profits are handled. Personal Ownership Property is in your name. Rent is paid to you directly. Rental profits are taxed at 20%, 40%, or 45%, depending on your income. […]
The penalties will double for companies submitting a Corporation Tax return late from 1st April 2026. This will be legislated for in Finance Bill 2025-26. Late filing penalties were first implemented in 1998 to promote timely submission of corporation tax returns. However, inflation has reduced their real value over time, weakening their original deterrent effect. […]
From April 2027, savers in the basic rate tax band will pay 22% in savings income tax, up from the current 20%. Higher and additional rate taxpayers will pay 42% and 47% respectively. 2.64 million people already are expected to be hit with tax on their savings this year. The new tax rates are expected […]
In November Autumn Budget, the Chancellor Rachel Reeves confirmed that the basic and higher rates of dividend tax will rise by two percentage points from April 2026. This change will negatively impact on millions of small limited company owners who receive dividends as part of their income. It will also affect investors who rely on […]
Some businesses provide both taxable and exempt services. This is common in sectors like finance, education, property, and healthcare. If you supply both, you are considered partially exempt — meaning you can only reclaim some of the VAT you pay on expenses. How it works: Annual AdjustmentAt the end of your VAT year, HMRC requires […]