Blogs

The Differences Between Cash Accounting and Accrual Accounting and Who Can Use These Ways of Accounting Under Cash Accounting, records income and expenses only when cash is received or paid, this keeps things simple and reflects actual cash flow. Under...

What Is Invoice Financing? Invoice financing is a way for businesses to improve cash flow by borrowing money against unpaid invoices. Instead of waiting 30, 60, or 90 days for customers to pay, businesses can access a percentage of the...

Holding Company, Why You Should Set One Up and What Are the Advantage and Disadvantages of Having This Business Structure?What is a Holding Group in the UK? A holding group (or holding company structure) in the UK consists of a...

Buying as an individual vs Ltd Company Buying property as an individual and through a limited company has distinct differences. Your circumstance will dictate how these differences affect you and which option works for you. The differences are: Tax differences:...

Artificial separation refers to when a business is split into smaller entities to avoid exceeding the VAT registration threshold (£90,000 from April 2024). HMRC considers this an abuse if the separate entities are not genuinely independent. How Does HMRC Assess...

What is IR35 and what are the key factors that HMRC look at with regards to IR35 IR35 is UK tax legislation designed to combat tax avoidance by workers supplying services to clients via an intermediary, such as a personal...

HM Revenue and Customs (HMRC) has issued a warning to employees who might risk losing thousands of pounds by not verifying their eligibility before claiming work expenses. The government body highlighted that numerous workers could be ensnared by online ads...

In the dynamic world of business, the decision to hire an accountant can be a game-changer. Whether you're a startup or an established enterprise, the expertise of a professional accountant offers a myriad of benefits that can significantly impact your...

Private medical insurance (PMI) is a popular employee benefit in the UK, offering access to faster medical treatment and a range of healthcare services. However, it's crucial to understand the tax implications for both employers and employees. TAX IMPLICATIONS FOR...

Anyone that emails me on Friday will get my out office message on email. WHY do I not work Fridays? I actually do work on Fridays but just not IN the business, rather I work ON my business. Previously I...

I really don’t think so. My opinion is that most people still want that human touch when dealing with their finances, that’s not to say that AI will not have its part to play, already its helping with bookkeeping faster...

HOW MUCH CAN I CLAIM FOR A WORK FUNCTION IF I TRADE THROUGH A LIMITED COMPANY WITH AN ITEM SUCH AS A CHRISTMAS PARTY This affects anyone who may have an “annual” function such as a summer party or Christmas...

CAN I CLAIM MY WORKWEAR AS EXPENSES WITHIN MY LIMITED COMPANY OR SOLE TRADE? You may be able to claim tax relief on the cost of cleaning, repairing or replacing a uniform or specialist clothing (example being overalls or safety...

It’s a common misconception that business owners can put all travel through the business and it will be allowable for tax purposes. Travel expenses need to be ordinary and necessary expenses for travel to benefit the company. This would be...

A common misconception is that cars given by a company are tax free. This is not the case, as a company asset is being used which may been seen as a cash equivalent and there will be tax payable on...

Compliance: Accurate financial records help you stay compliant with local tax laws and regulations, avoiding potential penalties and legal issues. Decision Making: Reliable financial data allows you to make informed decisions about your business's future, such as expansion, investments, or...

Have you ever come across situations where you have not expressed to anybody that you have made income on your buy to let? Is it something you should not be disclosing with the HMRC? A big NO. Though you are...

A lot of people now work from home. It is therefore quite common that people would like a separate office building so they have privacy as well as more space to work from BUT… is this a good idea? Let’s...

I’ve just done my tax return for the first time and HMRC have asked me to make a PAYMENT on ACCOUNT? What is this and why do I need to pay it? Payments on account are advance payments on for...