Class 2 NI Introduction Any self-employed individual who has a profit of £6,725 or more in a tax year will qualify to pay Class 2 NI. Some Self-employed people are exempt from paying Class 2 NI, these people include examiners, someone who runs a land/property business, ministers of religion, investors for themselves or others but […]

On 17 October 2022 the new Chancellor, Jeremy Hunt, made a fiscal statement reversing almost all tax measures announced at the Mini-budget on 23 September 2022, other than those that had already been legislated. Mini-budget proposals that have NOT been reversed and will remain Reversal of the April 2022 increase in National Insurance rates of […]

Are you on Standard VAT accounting (often called Invoice Basis), where you claim back the VAT based on the invoice date rather than the payment date? If so, do you ever have amounts owing to suppliers for more than 6 months? If the answer to this is also “yes”, you need to check that you […]

On September 23rd 2022, Chancellor Kwasi Kwarteng presented his mini-budget and ‘The Growth Plan 2022’, unveiling the biggest package of tax cuts in 50 years and hailing a “new era” for the UK economy. Mr Kwarteng said a major change of direction was needed to kick start economic growth. The highlights of the changes that […]

What is an NT tax code? An NT (no tax) code is granted to individuals who receive UK-sourced income and reside in a country that has a double taxation agreement with the UK. Two common examples would be the following – UK Expat who was previously employed by UK company and paid taxed via the […]

As of 1 September 2022, HMRC have changed the way that they carry out VAT assessments for overseas based traders who use online marketplaces. These follow the changes to VAT rules for overseas sellers which were introduced on 1 January 2021 and outlined in a previous blog. Prior to 1 September 2022, if HMRC had […]

Every UK employer must get Employers’ Liability (EL) insurance as soon as you become an employer, your policy must cover you for at least £5 million. If an employer does not have EL insurance, they can be fined by The Health and Safety Executive (HSE) £2,500 for every day that they are not property insured. […]

HMRC has designed payment on account to help the self-employed stay on top of their payments. Additionally, in comparison to an employed individual who are taxed monthly at source through PAYE, a self-employed individual will only pay their tax bill in the January after the end of the previous tax year, so not to benefit […]

The Chancellor announced in his Spring Statement that the NI ‘primary threshold’ will be increased in July 2022, to £12,570 per year, bringing it into line with the starting point for income tax. This means any individual earning below £12,570 on UK payroll will not pay any tax or NI. However, you may be asking […]

The annual allowance is the limit on how much money you can build up tax-free in your pension in any one tax year.  The annual allowance has increased to £60,000 per year in 2023/24 tax year (previously £40,000). Included in the allowance amount are the following – The annual allowance applies across all your pension […]