Tag: HMRC
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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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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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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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Payrolling Benefits in Kind
What is a taxable benefit? Taxable benefits – also known as benefits-in-kind (BIK) – are perks or expenses provided to employees that aren’t part of their salary but still hold monetary value. Common examples include company cars, private medical insurance, gym memberships, and interest-free loans from employers. Historically, these benefits were reported via a P11D…
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Tax Relief on Pension Contributions explained
Most people get a government top-up to their pension savings in the form of tax relief on their contributions. The way it is given depends on what kind of pension scheme you are in. Introduction When you save into a pension, the government usually gives you a top-up as a way of encouraging you to…
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Making Tax Digital for Income Tax
HMRC’s ‘Making Tax Digital’ programme is a key element of HMRC’s digital transformation plans. This flagship project, first announced in 2015, is being phased in over a number of years. Making Tax Digital (MTD) for VAT was the first element of the programme to be rolled out, beginning in April 2019. Making Tax Digital (MTD)…