One of the first questions we hear from new small businesses is “can I buy this through the business.” The fear of falling foul of HMRCs rules on what is allowable and what isn’t is something that we can hopefully clear up pretty easily. The key thing to remember is “wholly, exclusively and necessary”. The …
When you purchase large equipment or vehicles for your business you are not able to just buy them and knock the whole cost against your profits for the year and pay loads less tax. However, HMRC has ways available to claim a tax deduction for these items so you don’t miss out. CAPITAL ALLOWANCES Capital …
One of the benefits of being a sole trader and working for yourself is you don’t have tax deducted from every payment you receive. Instead of having tax deducted via the PAYE system like usual workers you pay it via the self assessment system. As a self-employed worker, you will complete your first self assessment …
The deadline for registering for self-assessment is 5th October each year. There’s a number of reasons that you might need to register for self-assessment, some are more common than others! If one of these has applied to you for the first time between 6th April and the following 5th April you have until the 5th …
With the changes in corporation tax that came in in April 2023 there are now two rates of corporation tax. 19% if your profits are under £50k and 25% if they are over £250k. There is marginal relief in between those numbers to slowly increase the overall tax to the top 25%. For a lot …
New corporation tax rates and associated companies Read More »
Renting out properties and being sure of what you can and can’t claim as tax deductible expenses can be very tricky. In the past few years HMRC have changed the rules on relief for mortgage interest, and have removed the 10% wear and tear allowance so its important to make sure you’re on top of …
Lets start with the good news, overpaying HMRC or paying them ahead of time will earn you interest of 4.25% from 22nd August 2023. Which in terms of interest rates available isn’t actually a bad one! There’s loads to consider with the timing of paying your tax bill, but if you do pay it early that …
Should you use a limited company to hold rental properties? As is so often the case with accounting and tax issues it depends, however with changes to the tax relief available on finance costs on buy to let properties it is a question more landlords are considering. The best option for you depends on a …
Pros and cons of using a limited company for rental properties Read More »
Whether you are employed or self-employed makes a difference to how you pay income tax and national insurance and how much you have to pay. It is important to understand your employment status so that you can ensure you are meeting your tax obligations. SELF-EMPLOYED OR EMPLOYED? There is no clear law on whether you …
For a number of reasons, you may reach the decision to shut down your limited company, you have decided to take a job elsewhere, your revenue has dramatically decreased, you want to convert back to a sole trader with the reduced paperwork and filing requirements. Either way, you need to know how to close down …
Accounting hints, tips, and updates
Want our fortnightly/monthly rambling on some handy accounting things? We attempt to make it slightly less boring than reading the back of shampoo bottles but can’t make any promises.
2 Sisters Accounting is a Limited company registered in England and Wales Registration No. 11167998
Reg office: International House, 12 Constance Street, London, E16 2DQ
