Author: Helen
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Understanding Input & Output VAT: A Guide to Reclaiming VAT
Everything You Need to Know About Input VAT Reclaims and Reclaiming VAT Introduction Value Added Tax (VAT) is a crucial element of the UK’s tax system, affecting businesses of all sizes. For those registered for VAT, understanding the basics of Input and Output VAT is essential for compliance, effective record-keeping, and efficient financial management. This…
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Companies House Identity Verification – date confirmed
Following the announcement earlier in the year regarding upcoming changes to Companies House filing requirements, it has now been confirmed that identity verification measures will be introduced from 18 November 2025. From this date, compliance will be mandatory. Benefits of the new legislation include more accurate and trustworthy register data and greater fraud protection. Key…
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What is a Director’s Loan Account?
A director’s loan is the funds a director deposits into and takes from the business that fall outside of expense expenses, salary or dividends. Directors’ loans can be with the director lending the company money or taking money out. A record of these withdrawals and deposits are shown on a director’s loan account. This record…
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What is an HMRC tax investigation?
HMRC has the right to check your business finances at any point to ensure you’re paying the right amount of tax. If your business is selected, you’ll receive an HMRC investigation letter or phone call in which they’ll tell you what they want to look at. This might include things like: If you use an…
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The difference between a sole trader and a limited company
The main difference between a sole trader and a limited company is the legal structure. Sole Traders are self-employed individuals, who are the sole person in their business. As a sole trader, you have total control over any business assets and profits. This also means you are personally liable for all the debts of the…
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Employed or Self-Employed ? Why it matters to the Employer
When you hire someone, for tax purposes you need to understand whether the law sees them as your employee or sees them as self-employed. If they are your employee then you have important responsibilities, including deducting tax and National Insurance from their wages and paying the money over to HM Revenue & Customs (HMRC). If…
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Statutory Sick Pay reform to take effect from April 2026
Following a recent consultation, the Department for Business and Trade confirmed on 1 July that significant reforms to Statutory Sick Pay (SSP) will come into force from April 2026. While the changes are aimed at enhancing support for employees, they will also introduce additional costs for employers. What’s changing to Statutory Sick Pay? From April…
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Changes to Accounts Filing for Small Companies and Micro-entities from 1 April 2027
From 1 April 2027, small companies and micro-entities will need to file profit and loss account statements with Companies House. Companies will no longer be able to prepare and file ‘abridged’ accounts. The changes are being introduced under the Economic Crime and Corporate Transparency Act 2023 to combat money laundering and other fraudulent activity. What’s…
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Changes to Dividend Income Reporting
From 6 April 2025, directors of close companies will face a change in how they report dividend income on their Self-Assessment tax returns. What is changing to Dividend Income Reporting? Currently, directors reporting dividend income on their Self-Assessment tax returns are only required to declare the total amount received across all sources. There is no…
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Tax Relief – What are Capital Allowances ?
Capital allowances are a way of obtaining tax relief for some types of capital expenditure. Capital expenditure being expenditure on items which provide an enduring benefit for trade. They are treated in a similar way to other business expenses when calculating taxable profits. Capital allowances are only available for expenditure on certain types of assets.…