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10 UK Tax Deductions Individuals Often Overlook

When it comes to taxes in the UK, many individuals focus on the obvious deductions like personal allowances and pension contributions. However, there are several lesser-known tax breaks that could save you a significant amount of money.Here’s a quick rundown of 10 tax deductions that are often overlooked:Work-From-Home Expenses: If you’ve worked from home, even partially, you might be eligible for tax relief on additional household costs, such as heating and electricity. The flat-rate r...

Self Assessment Payments on Account - When and Why ?

What is a Payment on Account?A payment on account is essentially a way for HM Revenue & Customs (HMRC) to collect income tax and Class 4 National Insurance Contributions (NICs) in advance. It’s based on your previous year’s tax bill and ensures that you spread the cost of your tax liability over the year, rather than paying it all in one lump sum....

Increase to Employer NIC (TAX) – the impact on your business

Significant changes were outlined in the recent Budget concerning the Employer National Insurance Contributions (NIC), the reduction of the ‘Secondary Threshold’ (ST) as well as Employment Allowance adjustments.Starting in April 2025, and compounded by the increase to the National Minimum Wage and National Living Wage, these changes could have a significant impact on the cost of employment for many small businesses.The new rates will see employers pay national insurance contributions (N...

Double Cab Pick-ups to be treated as cars for tax purposes in budget U-Turn

In the Autumn 2024 Budget, the UK government confirmed plans to reintroduce taxes on double cab pick-up trucks used as company cars, a policy set to take effect in April 2025.This move, which was originally proposed by the Conservative Party in the March 2024 Budget but later shelved, has now been reinstated by the Labour government in its first fiscal blueprint.The change means that popular double cab models such as the Isuzu D-MAX, Ford Ranger, and Toyota Hilux will be treated as company cars,...

Reviewing National Minimum Wage Increases From April 2024

From April this year, employers across the UK will need to review their hourly rates of pay and make adjustments where necessary to reflect the latest increase to the National Minimum Wage alongside changes to the National Living Wage.The National Living Wage, which is the minimum companies can legally pay any employee aged 23 or above who is not in an apprenticeship, will rise from £10.42 per hour to £11.44 per hour. The equivalent increase for employees aged 21 to 22 will bring the...

Higher Companies House Fees for UK Businesses From May 2024

From 1st May onward, British companies filing various documents, forms, and declarations will need to pay higher charges due to an uplift of the Companies House fee schedule. While the filing costs remain nominal, some have risen by as much as 300% or more, which may impact smaller businesses and newly incorporated companies.The organisation, an executive agency of the UK Department for Business and Trade, says that the higher costs are necessary to finance new activities and generate break-even...

How to Set Up an HMRC Payment Plan for Self-Assessment Income Tax

As the deadline for 2022/23 self-assessment tax returns and payments draws closer, you must take pre-emptive action if you cannot pay your obligations on time. HMRC normally issues a reminder letter initially if your tax return or payment is not received by 31st January.However, if you haven't made a payment, set up an instalment schedule or contacted the tax office, you will start to accumulate late filing penalties and interest charges and potentially attract further investigation. In the wors...

Guide to Making Self-Assessment Income Tax Payments on Account

If you’re self-employed or work as a sole trader, you might have just received your HMRC income tax statement, showing a final payment due on 31st January for the 2022/23 tax year and your first payment on account, due on the same date, for 2023/24.Payments on account are often seen as confusing, and many newly self-employed taxpayers are unaware they are expected to make payments on account for the current trading period – even if they haven’t yet calculated their tax liability!The SAS te...

Self-Assessment Taxpayers Are Reminded to Submit 2022/2023 Paperwork and Records to SAS Accounting in Good Time

As we approach the winter period, many clients report increasingly busy trading environments as so many sectors gear up for the festive season and make preparations for holiday closures and heavy demand during the next few weeks.While there are often many priorities over the coming months, we would like to remind any taxpayer who submits a self-employment tax return (for any tax liabilities) that the filing – and tax payment – deadline of 31st January is right around the corner!Sharing your ...

Basis Period Reforms Explained: All You Need to Know About Changes to Accounting Periods for Tax Declarations

From the 2023/24 tax year, HMRC has introduced changes to the reporting period requirements for partnerships and self-employed taxpayers. Your 'basis period' is the 12 months over which you prepare your accounts and submit details of your income and taxable profits to the tax authority.The idea behind the reform is to standardise the system, ensuring all self-employed taxpayers declare their earnings for a period similar to the official tax year – running from the 6th of April to the following...

Comparing the Pros and Cons of Asset Financing to Spread the Cost of Business Purchases

The question of asset financing often comes up when it’s time for a business to invest in new equipment, software or vehicles – larger outgoings that can put a strain on cash flow.However, it can be tricky for managers and owners to determine whether they would be better off paying more in interest charges to spread their payments or covering the cost outright and juggling their cash flow around it.Let’s look at all the pros and cons, various financing methods, and how to make informed dec...

Recapping the Rules on Auto-Enrolment and Workplace Pensions

Auto-enrolment was first introduced back in 2012 as part of a government initiative to make it easier for more people to save towards retirement and place obligations on employers to offer accessible pension schemes.However, we often speak with clients unsure of the current regulations or who find the rules confusing when it comes to staff opting out, working part-time, or simply uninterested in being auto-enrolled.In this guide, we'll summarise how it all works, what you need to do to meet auto...

What to Do if You Receive a ‘Nudge’ Letter From HMRC

Nudge letters are issued where HMRC has reason to believe an individual has undeclared taxable income, often because of information-sharing agreements that may indicate a revenue or gain occurring in another jurisdiction that does not marry with the declarations made.The important aspect when receiving any communication from the tax office is to ensure you respond – even if you believe the letter has been issued in error or there is no further tax to pay or declare.If you do not respond or req...

Managing Employer Obligations When Hiring Students for Summer Work Roles

Hiring students during the summer break is a common strategy, helping businesses manage increased demand during this busy period and providing students with an income and work experience during their time away from school, college or university.Many business owners are confused about the legalities of hiring staff under 18, what they should pay in compliance with the minimum wage, and the rules around areas such as weekly hours, manual labour and the work a young person can be asked to do.We’v...

Understanding Benefits in Kind for Electric Company Cars

As more and more people and businesses switch to electric cars – not least due to the government ban on sales of new fuelled vehicles from 2030 – all parties must understand what this means for benefits in kind.Benefits in kind exist to levy a tax liability against benefits received by an employee in addition to their salary and other pay. Examples include company cars, mobile phones, gym memberships, health insurance and childcare vouchers.The non-cash benefit must be available for personal...

Incorporating Higher Corporation Tax Rates Into Business Budgeting

As noted in our earlier article covering the Tax Changes to Be Aware of From April 2023, the standard Corporation Tax rate increased from 1st April onward – although many companies will not feel the impact for several months.It is, however, important that all business owners understand how the tax rates will impact their liabilities and know the correct way to perform tax computations where their next reporting period covers a 12-month financial year that straddles 1st April.Today we recap wha...

How the Optimal Director’s Salary Has Changed in the 2023/24 Tax Year

Each year the SAS Accounting team publishes a new guide outlining how companies can make director’s pay packages as tax efficient as possible, balancing the split between dividends and PAYE salaries to consider varied tax treatments, allowances and National Insurance.With so many changes introduced in the 2023/24 tax year, it may be more important than ever for directors to revise their remuneration and ensure they aren't paying more taxes and exposing the business to higher obligations than n...

Increases to Plastic Packaging Tax and Other Eco-Friendly Tax Measures

From April 2023, the tax charged against businesses producing or importing plastic packaging with less than 30% recycled materials has risen from £200 to £210.82 per tonne, payable by all organisations that manufacture or import over ten tonnes a year.The Plastic Packaging Tax, first introduced in April 2022 as part of the Resources and Waste Strategy, is one of several reforms and new taxes designed to improve the sustainability and green credentials of UK businesses.In this guide, we summari...

Our Expert Guide to Completing and Submitting a P11D

P11D forms are used to report benefits provided to employees outside of wages that constitute a benefit in kind – think a mobile phone for personal use, an interest-free loan, or health insurance.Employers are required to report any benefits paid during the tax year and calculate the taxable benefit, normally resulting in an adjustment to the employee's PAYE tax code and a Class 1A National Insurance liability paid by the business.You should complete a separate P11D for every employee or direc...

HMRC Reforms to VAT Return Late Submissions and Payments

All VAT-registered businesses need to be aware of how HMRC has changed how it deals with late returns and payments – in a move widely perceived as positive.Although late VAT returns and overdue payments related to periods before 1st January 2023 will still be handled according to the previous system, all subsequent returns will be addressed differently.Of course, the priority should always be to remain on time and compliant with all tax matters, and errors or corrections to returns the tax off...

Your Spring Statement 2023 Round-Up

The much-anticipated Spring Budget was delivered today, and as expected, it was based on economic growth without any major surprises.However, there was welcome news for taxpayers, businesses and savers, with changes to pension allowances, childcare support and an extension to the Energy Support Scheme, alongside upbeat announcements about the future of the UK economy.SAS Accounting has summarised the main areas of reform and the most important changes that might affect your plans, tax obligation...

HMRC Set to Challenge the Self-Employed Status of Associate Dentists

Over the last few months, we've reported several sectors falling under HMRC scrutiny. The next target looks to be associate dentists, causing potential disruption for practices and professional clinics.Conventionally, HMRC considers associate dentists self-employed, although this has been a somewhat informal arrangement. However, this system is based on a standard associate dentist agreement approved by bodies such as the Dental Practitioners Association and the British Dental Association.From t...

Tax Changes to Be Aware of From April 2023

Over the last few months there have been multiple changes related to various taxes, with reversals and revisions that have made it difficult for many businesses to understand how their tax obligations will change, and what that means for the new tax period from April.In this article, we run through each of the major reforms to ensure you have up to date information to help with budgeting, tax planning and decision-making....

Preparing for the 2023 Financial Year Ahead

As we settle back into our routines following the festive break, there are several key factors that businesses need to be aware of and prepared for in 2023.While we detailed the headline announcements from the Autumn budget back in November, there have been further announcements and changes in the interim, which we’ll summarise here as a checklist to ensure you are up to speed....

Key Responsibilities of Limited Company Directors

Incorporating your business as a limited company or being appointed as a director for the first time is an exciting opportunity – but there are various fiduciary responsibilities and legal requirements you need to adhere to. Much of the legislation is included within The Companies Act 2006, which sets out your duties around things such as: Participating in board meetingsEnsuring the company meets statutory obligationsManaging company affairs on behalf of the shareholders For many small busines...