What is a Road Tax? Road Tax is a payment that needs to be made annually by vehicle owners in the UK. If you no longer need to pay road tax, then you can reclaim it from HMRC by informing DVLA. However, before initiating the cancellation process, there are certain criteria that need to be met and users should understand how cancelling their road tax works. How to Cancel My Road Tax? If you are wondering how to cancel your road tax, the first step is to contact the DVLA and inform them that you will no longer be using the vehicle and wish to cancel your road tax. After this, HMRC will provide y ..read more

Arbitration is an effective way to resolve disputes without going through the court system. An arbitrator, selected by you and your opponent, hears evidence from both parties in arbitration and makes a decision about how to settle the dispute. This decision is legally binding, so it’s important that you understand what arbitration involves before deciding whether or not to agree to arbitration. Benefits and Drawbacks of an Arbitration Process in a Dispute Quick and easy: The arbitration process is generally less expensive and less time-consuming than litigation, making it a popular choice for ..read more

In the post-covid world, we woke up to a world where sick pay is more important than the pre-pandemic work environment. Statutory Sick Pay has become a hot-button issue for many employers, contractors and employees alike. Therefore, in this blog post, we covered statutory sick both from employees’ and employers’ perspectives. How much is Statutory Sick Pay? Statutory Sick Pay (SSP) is a set amount of money paid to employees who are off work due to illness or injury. It was put in place to ensure that those who can’t work due to illness are still able to receive some income while they recover ..read more

What is Marriage Allowance? Marriage allowance is a great way for married couples to save money on their taxes. By transferring £260 from the lower income earner to their partner (wife, husband or civil partnership), a marriage tax allowance can reduce your overall tax bill between £364 to £941.50 a year and put more money back in your pocket. For that, you need to earn less than £12,570 and less than your partner. Who Qualifies for Marriage Tax Allowance? If you are married or in a civil partnership, and at least one of you earns less than £12,570 per year, then a marriage tax allowance can b ..read more

The Annual Investment Allowance (AIA) is a valuable tool for business owners to claim tax relief. It allows you to deduct 100% of your expenditure, excluding VAT, on most assets used in the business. This allowance has been extended until April 2023 and there are now new eligibility criteria for claiming AIA. To be eligible for AIA, you must own the assets purchased and use them in the business or for renting out. You must also state the cost of each asset on your tax return. Additionally, you should keep records of all expenses related to the purchases of assets as well as any maintenance cos ..read more

HMRC has recently started to send out letters to those who might have made income from short-term property letting via websites like Airbnb, Booking.com, VRBO and Holliday Lettings. If you’re making money from short-term letting through a platform such as Airbnb, it is important to understand the taxation implications. In the UK, there are two types of income tax that can be applicable to Airbnb tax – ordinary rental income and furnished holiday income. What is Ordinary Rental Income Airbnb? Ordinary rental income is relevant if your Airbnb property is rented out for more than 105 days per tax ..read more

Having a second job is an attractive option for many people, as it can bring in extra income and provide more financial security. However, you should be aware of how second job tax works so that you don’t end up paying too much. The amount of tax you pay on your second job will depend on the amount of money you are earning and your total personal income. Generally, if you are earning more than the tax-free allowance of £12,570, then you will be liable for some second job tax. However, the rate of second job tax will vary depending on how much money you earn in total – even if it is within the ..read more

Is it better if you are self-employed? Read it before making your choice. What’s an Umbrella Company? An umbrella company is a business used to pay temporary workers through PAYE. Generally, the umbrella company becomes the employer for the worker, who will then be paid by them. This arrangement is commonly used by recruitment agencies and employment businesses to pay their workers. Typically, umbrella companies do not find any temporary work for employees. Instead, they are usually hired by the recruitment agency to pay workers for the work that has been completed. This type of arrangement is ..read more

What’s SH01 Form for? SH01 Form is an essential document that every company must submit to Companies House. It is used to notify the government of any new shares that have been allocated within your limited or partner company. SH01 Form needs to be filed within 30 days from the day when the new allotment was made. What happens if I don’t file SH01 Form? If SH01 Form is not filed within the prescribed time frame, Companies House may impose a fine. Additionally, SH01 Form must be submitted on an annual basis in order to maintain accurate records about your company’s capital structure. Failing to ..read more

What is Alcohol Excise Duty? Alcohol excise duty is a tax imposed on alcoholic products, such as spirits, wine, and beer. It’s levied by the UK government in order to raise revenue from sales of alcohol. Excise duty legislation applies to all alcohol sold in the UK, regardless of whether it’s produced in the UK or imported from elsewhere. Alcohol duty legislation provides certain exemptions and reliefs from alcohol excise duty, such as for small producers of beer and wine. There may also be different rates of alcohol excise duty depending on the type of product. For example, alcoholic beverage ..read more