When your business imports goods or receives services from overseas, special VAT rules apply. Imported goods Imported services Important: Keep all documentation for imports and overseas services and ensure your accounting system handles reverse charge correctly.
Many UK businesses supply a mix of taxable and exempt goods or services. This falls under partial exemption rules. You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period, or you expect to exceed this threshold within 30 days. This assessment is done excluding the exempt turnover Important notes: […]
Some supplies of goods or services are exempt from VAT, meaning you do not charge VAT on them and they do not count towards the VAT registration threshold. Common exempt services include: Key takeaway:If your business only supplies exempt items, you normally do not need to register for VAT because you’re not making taxable supplies […]
Understanding VAT for Small Businesses Businesses act as tax collectors for HMRC by charging VAT on their sales (output tax) and reclaiming VAT on eligible purchases (input tax). Getting VAT right is essential for both compliance and cash flow management. Moreover, understanding when to register and how to file correctly helps you avoid penalties and […]
Corporation Tax Filing and Payment Deadlines All limited companies must file a Company Tax Return (CT600) every year. Penalties for Late Filing or Payment HMRC imposes penalties if your filing or payment is late or incorrect: Maintaining accurate and timely records helps ensure compliance and prevents unnecessary fines.
Corporation Tax Rates for UK Companies (2025/26) Corporation Tax is the main tax paid by UK limited companies on their taxable profits. Whether you’re a small business or a large enterprise, understanding how the 2025/26 Corporation Tax rates apply helps ensure compliance and efficient tax planning. Corporation Tax Rates for 2025/26 As of April 2025, […]
The UK offers two special allowances that can simplify your tax return: the trading allowance and the property income allowance. Each provides up to £1,000 of tax-free income, making them ideal for people with small amounts of extra income. The Trading Income Allowance The Property Income Allowance The Rent a Room Allowance This is a […]
Specific Self Employment Expenses: What You Can & Cannot Claim When you’re self-employed in the UK, HMRC allows you to deduct certain costs from your income before calculating your tax bill. These are known as allowable business expenses. Knowing what qualifies can significantly reduce your taxable profit — but getting it wrong can lead to […]
The other most important question is, “if I do not tell HMRC about these hustles, will anyone tell them?”. On both questions, the short answer these days in most instances is YES. Changes that were brought in by HMRC in January now requires online e-Commerce and online services platforms to automatically report the income and […]
Many people only glance at their net pay, but a payslip contains crucial details about how your income is taxed and where your money goes. By understanding each section, you can check for errors, avoid overpayments, and budget more effectively. 1. Income Tax and National Insurance (NI) For the 2025/26 tax year, the Personal Allowance […]