VAT-registered businesses must keep proper records to meet HMRC requirements. You must keep: Record retention:You must keep VAT records for at least 6 years.Digital records are required under Making Tax Digital (MTD) rules unless HMRC grants an exemption.
The UK government is rolling out Making Tax Digital (MTD) to modernise the tax system. By moving away from paper records and annual tax returns, HMRC aims to make tax reporting more accurate and efficient. Who Does It Apply To?From April 2026, MTD for Income Tax Self Assessment (ITSA) will apply to self-employed people and […]
To calculate the business expense for a director’s use of a personal vehicle for business journeys in the UK (tax year 2025/26), use the HMRC Mileage Allowance Payments (MAPs). This method reimburses a fixed rate per business mile and is straightforward, tax-free up to the approved rates, and covers all operating costs (fuel, maintenance, insurance, […]
Most Directors think this is a once-a-year effort. Reducing tax liability is a daily thought that involves thinking about the tax implications of all your actions, expenditure and plans for the business and personal. For example, HMRC allows the company to reimburse you for all allowable business expenses incurred personally by the director. The director […]
Some people in business would want to believe that their bank statement is enough to present as a true record & presentation of their business affairs. Well HMRC will disagree strongly with that point of view on the simple fact that; 1. A bank transaction doesnt show the exact product that was bought in the […]