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MTD - What does this mean for Freelancers?

Making Tax Digital (MTD) is HMRC’s initiative to make the UK tax system effective and efficient in today’s digital world. MTD is intended to make life easier and to file tax returns more accurately for the taxpayer. 

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Top Tips for Managing Your Cash Flow During Uncertain Times

Whilst the UK economy continues to slow, but is not officially in a ‘recession,’ business owners may be worrying about the impact that going into a recession could have on their business and with experts unable to predict the severity or the length of it, many business owners are fearing that the worst is yet to come. 

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Tax Diary October/November 2022

1 October 2022 - Due date for Corporation Tax due for the year ended 31 December 2021. 19 October 2022 - PAYE and NIC deductions due for month ended 5 October 2022. (If you pay your tax electronically the due date is 22 October 2022.) 19 October 2022 - Filing deadline for the CIS300 monthly return for the month ended 5 October 2022.   

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Winter Fuel Support

If you were born on or before 25 September 1956 you could receive between £250 and £600 to help you pay your heating bills. This is known as a ‘Winter Fuel Payment’.

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Can I claim loan/mortgage interest as a tax reduction?

Although finance costs, predominantly loan interest, are now disallowed as an expense that can be utilised to reduce taxable rental income, these charges do qualify for a tax credit limited to 20% basic rate Income Tax. For example, if your loan/mortgage interest amounts to £10,000 this cannot be used to reduce your rental income. It will simply reduce your Income Tax bill by £2,000 (£10,000 x 20%).  

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When is the MTD Deadline for General Partnerships?

HMRC’s vision to digitalise the UK tax system continues to unfold with General Partnerships that have a taxable income above £10,000 set to join Making Tax Digital (MTD) for Income Tax from April 2025. 

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Online VAT returns are set to close on 1 November 2022.

Online VAT returns will close on 1 November 2022 as part of HMRC’s Making Tax Digital (MTD) movement. This will leave VAT registered businesses to choose either using MTD compatible software or face penalties, unless they are exempt. 

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Tax Diary September/October 2022

Tax Diary September/October 2022

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Do I qualify for Rent-A-Room Tax Relief?

The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.

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Struggling to keep up with inflation? Here’s how to stay on top of your finances.

To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.

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How to save £2,000 in tax-free income.

There is no tax to pay on trading income or earnings from land and property as long as the income from each of these two sources does not exceed £1,000.

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Registering A Trust - 1st September 2022

Legislation was introduced in July 2017, which requires ‘express’ trusts with a UK tax liability, to submit, electronically, accurate information of the beneficial owners to HMRC through the TRS.