The sales turnover threshold at which a business would ordinarily be required to register for VAT in the UK has been £85,000 since 1st April 2018, only now changing to £90,000 from 1st April 2024.
With different rules for Limited Companies and sole traders, flat rates for simplified accounting, cash accounting, accruals accounting and restrictions on property businesses depending on the type it’s not surprising that business owners get confused about what counts for an expense and what doesn’t in their particular business.
We can all earn a £1,000 per tax year from trading without worrying about a tax return but some social media businesses are so successful so quickly that their owners who are often inexperienced in the tax implications, are swept along with the momentum and before they know it they have responsibilities but not the knowhow, time or possibly even awareness to deal with the them.
Bookkeeping and accounting are both essential functions for any business, but they have different roles and responsibilities. In this blog post, I will explain the difference between bookkeeping and accounting, and why you need both for your business.
The key message is that Making Tax Digital is going to be implemented for sole traders and Landlords by April 2024 so if you haven’t already done so you need to be preparing to find software that you can get on with by that date. Therefore for a relatively pain free MTD journey we do advise starting with the software by April 2023.
When is a hobby not a hobby (in the eyes of HMRC) and should I be completing a tax return?
We waited worryingly for this budget, well I did after all the rumours and speculation e.g., taxing the reserves of limited companies which has not happened. And arguably Rishi Sunak’s second Coronavirus budget seems to mainly be supportive, at least for now.
Not sure if you are near the tax bracket? Just want to workout how much tax you might need to pay at the end of the year? This helpful guide shows some of the rates and thresholds in 2020/21.
Since 21st March 2020 it feels as though we have been launched into the future with close contact at work a happy thing of the past and having now recovered from the shock, industries having to rethink the way that they work and develop at an unprecedented speed if they are to survive.
If you have had to travel extensively in your employed job but been paid less than 45p per mile for driving your car, you are likely to be in line for a tax rebate.
The sales turnover threshold at which a business would ordinarily be required to register for VAT in the UK has been £85,000 since 1st April 2018, only now changing to £90,000 from 1st April 2024.
With different rules for Limited Companies and sole traders, flat rates for simplified accounting, cash accounting, accruals accounting and restrictions on property businesses depending on the type it’s not surprising that business owners get confused about what counts for an expense and what doesn’t in their particular business.
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