Sole trading business is one of the common methods of setting up business in the UK. You can set up a business in the UK as a Sole trader. When this method, the taxpayer and the business are treated as the same person legally. Therefore personal tax is due on the profit made from the […]
One of the methods of setting and running a business in the UK is by incorporating a limited company. The new company will be a resident in the UK by incorporation and all the worldwide income and gains will be taxable under the corporation tax. The company set up in the UK will pay corporation […]
Determining when an individual is tax resident in the UK is very important. The reason is that it determines whether a taxpayer has to pay tax on its worldwide income. The treatment of UK resident or non-resident UK taxpayer doesn’t no change when income is earned in the UK. When income is earned in the […]
At times we rent a room in our home to lodgers so as to be able to get extra income from the use of an empty room. Usually, when you earn rental income in the UK, it is a taxable income. The taxpayer would have to declare this to the HMRC through the self-assessment regime. […]
Property let campaign was introduced some years ago. This to help landlords that have not declared their rental income to HMRC in the past years. Basically, what the HMRC is trying to achieve with this campaign is to give the landlords the opportunity to declare their rental income to them. The rental income from 20 […]
Most of the time when we receive our payslip, we do not understand the money that we have been paid or how our net income has been calculated. So, in this blog post, I would like to explain how a taxpayer can decode their payslip. There are various factors that could determine the net income […]
Claiming the use of home as an expense can reduce the tax that a business owner pays or enable an employee to receive tax refunds from HMRC. If you would like to read more on how to calculate the use of home as an expense kindly click. How to claim this expense as a business […]
Errors on self-assessment returns are very prevalent to taxpayers. Mistakes can be caused due to various reason such as: Not declaring all other sources of income on the self-assessment returns. Declaring an incomplete record on Self-assessment returns. Overstating the expenses in the returns. Understating the expenses on the returns. What happens when there are errors […]
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