What Is the Annual Investment Allowance in the UK?
The Annual Investment Allowance (AIA) is a capital allowance that lets businesses deduct the full cost of qualifying plant and machinery from their taxable profit in the year of purchase. In 2024/25, the AIA limit is £1,000,000 per year. For…
What Is an Accountant and What Do They Actually Do?
An accountant is a financial professional who helps individuals and businesses manage their finances, prepare their accounts, and meet their tax obligations. In practice, what an accountant does for a small business goes far beyond filing a tax return once…
How to Take Money Out of a Limited Company Tax Efficiently
One of the biggest advantages of operating through a limited company is the ability to control how and when you take money out of the business. Done correctly, this significantly reduces the tax you pay compared to taking the same…
What Is a UTR Number and How Do I Get One?
A UTR number is a Unique Taxpayer Reference. It is a 10-digit number that HMRC uses to identify you for tax purposes. Every person or business that files a Self Assessment tax return or is registered for Corporation Tax has…
What Is the Construction Industry Scheme for Contractors?
The Construction Industry Scheme (CIS) places a set of obligations on contractors who pay subcontractors for construction work in the UK. As a contractor, you are responsible for verifying subcontractors with HMRC, making the correct deductions from their payments, paying…
How to Pay Less Tax as a Self Employed Person in the UK
Every self-employed person in the UK pays tax on their profits. The lower your taxable profit, the less tax you pay. There are entirely legal ways to reduce that profit through allowable expenses, pension contributions, timing strategies, and the right…
What Is a P60 and What Do I Do With It?
A P60 is an end-of-year tax summary that your employer gives you after each tax year ends on 5 April. It shows your total earnings and the total tax and National Insurance deducted from your pay during that tax year….
What Is Making Tax Digital and Does It Affect Me?
Making Tax Digital (MTD) is HMRC’s programme to modernise the UK tax system by requiring businesses and individuals to keep digital records and submit tax information to HMRC through compatible software. The goal is to reduce errors, make tax more…
How to Avoid a Self Assessment Penalty in the UK
HMRC charges automatic penalties for late Self Assessment returns and late tax payments. These penalties apply whether or not you owe any tax, and they accumulate quickly if left unaddressed. The good news is that every Self Assessment penalty is…
What Is the Tax-Free Dividend Allowance in the UK?
The dividend allowance is the amount of dividend income you can receive each tax year before paying any tax on it. In 2024/25, the dividend allowance is £500. This allowance has fallen significantly in recent years. It was £5,000 in…