At the beginning of each tax year, taxpayers will receive a letter from HMRC telling you the tax code for this tax year. A few common ones for the current tax year are: 1257L – you will get the standard tax-free allowance, which is £12,570 0T – no tax-free …
HMRC require that all companies’ financial years finish on the last day of the month in which they are incorporated. HMRC also want any one corporation tax return to cover no more than 365 days. This means companies must submit one return covering the twelve months to the anniversary of …
You complete a Self-Assessment tax return, submit it, then a few weeks later you receive a letter from HMRC asking you to pay a much higher amount than the tax liability shown on your tax return. Why? In short, HMRC wants you to pay your tax liability for the …
Many companies offer Tax Advantaged incentive schemes to employees as part of long-term incentive plan. These include: Share Incentive Plans (SIP) Save As You Earn (SAYE) Company Share Option Plans (CSOP) Enterprise Management Incentives (EMI) Share Incentive Plans (SIP) Employees can buy their employer companies’ shares with their …
When exiting a limited company, entrepreneurs need to extract retained profit from their company. Normally, profit taken from a company would be treated as dividends, and incur the corresponding income tax liability. However, a much-preferred option as we’ll see is to qualify for entrepreneurs’ relief and to treat profit as …
If you sell a residential property in the UK after 6 April 2020 and have capital gains tax (CGT) due, you must report the gain and pay the CGT within 30 calendar days of selling the property. Failing to report and pay, you will be subject to late filing and …
Owning buy to let properties through a limited company holds several advantages over owning the properties as an individual(s). This topic was discussed in a previous article. In this article we look at particular circumstances under which the two options can be quite close, this is because of another …
The Chancellor of the Exchequer recently announced a mini holiday from stamp duty on residential properties. The holiday lasts from now until next March, and all categories of buyers will benefit including landlords, first time buyers, and buyers who have owned homes before. Let’s look at how this works and …
Individuals can earn up to £7,500 rental income per annum tax free under Rent a Room relief by letting out furnished accommodation in their own home. The £7,500 is rental income, before any expenses are deducted. If the income is below £7,500 for the year, and an individual is not …
Venture-backed companies often grant Restricted Stock Units (RSU) to its employees as a form of incentive plan to encourage employees stay with the company for longer. The shares in RSU can be restricted (with no voting rights, for example) and only become available to employees after certain conditions are met, …