Learn how Simple Assessment is affecting your tax returns and why HMRC is making these changes? Simple Assessment is an easier and more convenient method of collecting taxes. The method which was recently adopted by the HMRC has proved to be beneficial for those who are supposed to file for their Simple Assessment tax.   Under Simple Assessment, HMRC automatically calculates tax liabilities using a Simple Assessment Calculation ‘SAC’ for some taxpayers. This removes them from the self-assessment system. The procedure will start by concentrating on new state pensioners and PAYE clien ..read more

A basic understanding of Entrepreneurs’ Relief One of the most appealing benefits available to business owners and entrepreneurs is Entrepreneurs’ Relief. Entrepreneurs’ Relief allows individuals to pay 10% tax on income made on qualifying assets. Payable Capital Gains Tax for entrepreneurs reduces if they sell or ‘dispose of’ some or all parts of their business. This article will help you gain an insight into Entrepreneurs’ Relief and what factors make you eligible to claim it. If you still have any queries regarding the subject, you can always speak to a startup accountant to gain more knowl ..read more

Income Tax is made up of different bands. As your income increases, so does the amount of Income Tax you pay. However, make sure you are paying the right amount of tax and have the correct tax code.  Being an employee, you should have a primary and accurate understanding of tax structure to keep yourself safe from the hassle of using the wrong tax code, tax payments and National Insurance.  Every individual pays income tax and National insurance (NI) on their earnings through PAYE (pay-as-you-earn) system. On the other hand, whether a business owner or a junior-level employee in a co ..read more

Do you need tax-efficient finance for your company? Well, HMRC’s new guidance for businesses wanting to attract investors to purchase stock in their firm has recently been released. Investors may potentially benefit from a number of lucrative tax incentives if the arrangement is structured properly and the firm satisfies EIS or Seed EIS criteria. Because of the EIS, the firm may raise up to £5 million each year, with a ceiling of £12 million in total throughout its existence. This also includes money raised from other venture capital programs. Within seven years after the company’s first comme ..read more

There is always a Value Added Tax, or VAT, in every purchase. Even for vehicles, there is a VAT that is generally 20% of the entire price. The VAT is usually determined by the cost of the vehicle. Buyers will be able to reclaim the 20% in certain circumstances, and they may even lower the car’s price. Used cars that are VAT qualified were generally previously owned for commercial purposes. You can reclaim the 20% if your vehicle is VAT registered. If you buy a used car that isn’t VAT-qualifying and it becomes unusable, you won’t be able to get your money back or have the VAT restored. Individu ..read more

Due to avoidance, non-payment, and fraud, tax loss has surged to £35bn in the UK. The pandemic has caused a severe budget deficit and financial restraint, leading many individuals and businesses to adopt tax avoidance schemes to reduce their tax liabilities. Tax avoidance can be a misleading term, and there is a fragile line between tax avoidance and tax evasion. A single and simple error can turn your tax-avoiding actions into tax evasion leading to heavy penalisation. Therefore, Clear House Accountants have curated this guide to clear any confusion between tax avoidance and tax evasion by ex ..read more

Taxation in the UK Taxes in the UK are collected both at different levels. Her Majesty’s Revenue and Customs (HMRC) is the system responsible for collecting and administering taxes at the government level while councils are responsible for collecting taxes at the local level. The UK collected £828 billion worth of taxes in the financial year 2019/20, i.e. 37% of its GDP.  The primary taxes that uplift the state coffers are income tax, savings income tax inheritance tax, property taxes, value-added tax (VAT), and capital gains tax. To be able to pay taxes in the UK one must own a national ..read more

Each year thousands of UK citizens submit their self-assessment taxes before or on the deadline day that is 31st January, and almost one-third of this number do it in the very last hour. This year HMRC is expecting 12.1 million tax return filings to be filed of which 55 per cent have already been received as of 29 December 2020. Considering this, around 5.4 million taxpayers will still face last-minute panic as there is now less than a month left to file tax returns. What is the Deadline For Filing Self Assessment Tax Returns? The self-assessment tax return deadline for the tax year 2019-20 i ..read more