What is Child Benefit? Child benefit is a government-provided allowance for each child at fixed rates. However, if your income exceeds certain thresholds, you may be subject to the High Income Child Benefit Charge (HICBC), which can reduce or eliminate this benefit. Changes to HICBC Thresholds From 6 April 2024, the HICBC threshold will rise […]

Introduction A UK resident must declare on their UK tax return any worldwide income they received in that tax year and pay UK tax on this income. However, if they have already paid foreign taxes on this income, they may have the possibility to claim a foreign tax credit (FTCR) to reduce any UK tax […]

Introduction Under the cash basis, income and expenses are recorded based on the date the money is received or paid. Under the accrual’s basis, income and expenses are recorded based on the invoice or bill date. Since the 2017-18 tax year, cash basis has been the default basis for most property businesses that are run […]

There are various tax allowances that maybe relevant when calculating your self-employment business expenses for your UK tax return. These allowances are only relevant if you use the accruals basis when presenting your income/expenses, not the cash basis option. Annual investment allowance (AIA) If you purchase items for your business that will last for 2 […]

If an employer provides an employee with trivial benefits and all the following conditions are met this benefit is exempt from tax and NI Cost less than £50 This amount is NOT an allowance, rather it’s an exemption, therefore you can provide various gifts during the tax year for less than £50 and it will […]

Introduction Restricted Stock Units (RSUs) have gained widespread popularity as a form of employee incentive in recent years. These employee share option schemes are particularly prevalent in multinational tech corporations. RSUs are granted to employees during significant milestones. Major tech giants such as Microsoft and Google commonly offer RSUs to new hires as part of […]

For an event to be exempt from tax and NI, all the following 3 conditions need to be met – Annual event An annual event is a recurring based event, for example summer barbeque or employee day out trip. Retirement party or team building event is NOT considered an annual event and is not exempt […]

If you are sole trader and need a vehicle for work, you have the following options – Usage of personal vehicle You can use your personal vehicle for business purposes and claim tax relief on the cost of doing so. There are two methods of working out your vehicle expenses Claiming flat rate expenses is […]

The Government has revealed plans to raise company size thresholds by up to 50%, aiming to reduce regulatory burdens on businesses’ reporting. This initiative is part of a broader package of measures. These adjustments are slated to come into force for businesses commencing their financial year on or after October 1, 2024.  The adjustments are […]

The Chancellor’s Spring Budget 2024 announced a 2% cut in the main rates of National Insurance for both employees and the self-employed from 6 April 2024. Class 1 NIC Class 1 NICs apply to those with annual earnings between £12,570 and £50,270, currently at a rate of 10% (reduced from 12% in the Autumn 2023 […]