News
Health services exempt from VAT
13/02/2025
Health professionals providing medical services may be exempt from VAT if their work falls within their registered profession and primarily protects, maintains, or restores health. HMRC outlines specific exempt services, including diagnosis and treatment.
The VAT liability of goods and services provided by registered health, medical, and
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Cut in interest rates
13/02/2025
The Bank of England’s Monetary Policy Committee (MPC) met on 5 February and in a 7-2 vote decided to reduce interest rates by 25 basis points to 4.5%. The two remaining members voted to reduce the rate further to 4.25%. This was the third interest rate cut since August 2024.
This means that the late payment interest rate applied to the
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Tax when transferring assets during divorce proceedings
13/02/2025
Separation and divorce can create tax implications, particularly Capital Gains Tax (CGT) on asset transfers. New rules from April 2023 extend the ‘no gain/no loss’ period, helping spouses manage tax efficiently. Private Residence Relief may also apply.
When a couple separate or divorce, their focus is typically directed towards the
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Jointly owned property – no partnership
13/02/2025
Tax on rental income from jointly owned property depends on ownership shares, unless part of a partnership. Married couples default to a 50/50 split unless they notify HMRC of a different income allocation based on actual ownership proportions.
When property is jointly owned with one or more individuals, the taxation of rental income
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Check or update company car tax details
13/02/2025
If you use a company car for private travel, it's taxed as a Benefit in Kind (BIK). The tax rate depends on the car’s list price and CO2 emissions—low-emission vehicles get tax breaks. Use HMRC’s online tool to check and update your company car tax details.
If you are provided with a company car that has private use (including
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CIS monthly returns obligations
13/02/2025
The Construction Industry Scheme (CIS) requires contractors to deduct tax from subcontractor payments and file monthly returns with HMRC. Even if no payments are made, nil returns must be submitted to avoid penalties.
The CIS is a specialised set of rules governing tax and national insurance for individuals working within the
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Not all hurt feelings are uncapped & costly
11/02/2025
The Employment Appeal Tribunal slashed a £10,000 award for injury to feeling by 80% after an original tribunal ruling was deemed not to be Meek compliant as it failed to provide adequate reasons for the quantum awarded. A Miss Graham was employed by Eddie Stobart Ltd. for just over ten months as a planner when she became pregnant and
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How to Stop Future Payments on Your Debit or Credit Card
11/02/2025
Stopping future payments from being made on your debit or credit card is crucial for avoiding unwanted charges and managing your finances effectively. Here’s how you can do it:
The first step is to contact the company taking the payments. Request that they cancel the recurring charge and provide confirmation in writing or via email.
If
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How to Check the Creditworthiness of New Customers
11/02/2025
Before extending credit to new customers, it’s essential to assess their financial reliability. Checking their creditworthiness helps protect your business from potential losses and late payments. Here’s how to do it:
Start by requesting basic financial information from the customer, including company details, trading history, and
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Small duty cuts on draught products from 1 February 2025
06/02/2025
From 1 February 2025, alcohol duty on draught pints has been cut for the first time in a decade, saving drinkers 1p per pint. Small breweries also benefit from tax relief. However, duty on non-draught alcohol has risen with inflation, impacting bottled and canned drinks.
Small alcohol duty cuts on draught pints came into effect on 1
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When is a hobby a business
06/02/2025
Not sure if your hobby is actually a taxable trade? HMRC uses ‘badges of trade’ to assess whether an activity is a business. Factors like profit motive, transaction frequency, and asset changes help determine if tax rules apply to your earnings.
The 'badges of trade' tests, although not definitive, serve as important tools for HMRC in
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31 January deadline met by more than 11.5 million people
06/02/2025
Over 11.5 million people met the 31 January 2025 self-assessment deadline, but 1.1 million taxpayers missed it. If you're one of them, expect a £100 penalty. Learn about late fees and HMRC’s payment plan options to avoid further charges.
There are an estimated 1.1 million taxpayers that missed the deadline. Are you among those that
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How umbrella companies work
06/02/2025
Umbrella companies offer an easy way for freelancers and contractors to get paid without running a limited company. They handle payroll and tax via PAYE, ensuring compliance and employment rights. But are they the right choice for you? Consider the pros and cons.
Essentially, an umbrella company acts as an intermediary between the worker
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Tax on inherited private pension pots
06/02/2025
Private pensions can be a great way to pass on wealth, but tax implications depend on the age of the deceased and the type of pension. Some beneficiaries may receive funds tax-free, while others could face significant tax charges. Knowing the rules is essential.
Private pensions can be an effective means of passing on wealth, but it is
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Tax chores if managing a deceased person’s estate
06/02/2025
When someone dies, their personal representative (executor or administrator) must value their estate to determine if Inheritance Tax (IHT) is due. This involves assessing assets, debts, and handling tax obligations throughout the estate’s administration period.
In order to ascertain whether or not IHT is due, the personal representative
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Tax Diary March/April 2025
04/02/2025
1 March 2025 - Due date for Corporation Tax due for the year ended 31 May 2024.
2 March 2025 - Self-Assessment tax for 2023-24 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2025, or an agreement has been reached with HMRC under their time to pay facility by the same date.
19 March 2025 - PAYE
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A Small Business Guide to Exporting and International Trade
03/02/2025
Expanding into international markets can be a game-changer for UK small businesses, opening up new revenue streams and increasing business resilience. With the right knowledge and support, even small firms can successfully sell their products and services abroad. The UK government offers various resources to help businesses navigate the
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Late Payment Support for Small Businesses – How to Protect Your Cash Flow
03/02/2025
Cash flow is the backbone of any small business, yet late payments continue to be a major challenge for entrepreneurs across the UK. According to the Federation of Small Businesses (FSB), around 50,000 businesses close annually due to cash flow problems caused by overdue invoices. To help combat this issue, the UK government has set up
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Student and postgraduate loan thresholds and rates
30/01/2025
From 6 April 2025, new thresholds for student loan repayments will take effect, impacting borrowers across the UK. Whether you're on Plan 1, Plan 2, Plan 4, or repaying a postgraduate loan, here’s a breakdown of the latest changes and what they mean for you.
Student loans are a key component of the government’s financial assistance
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Self-employed must report profits on tax year basis
30/01/2025
Big changes are here for the self-employed! From 2024-25, profits must align with the tax year, replacing the old "current year basis." Overlap relief is ending, and transition profits will be spread over five years. Here’s how the new system affects your tax bill.
The reform to the self-employed tax basis period has introduced
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Who needs to register for an EORI number
30/01/2025
If you are moving goods across borders, an EORI number may be essential for customs clearance. Whether trading with the EU, Northern Ireland, or beyond, knowing which type you need—GB, XI, or EU—can save time and hassle. Here’s what you need to know.
The EORI number is required for the following situations:
Moving goods
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How to check your tax code
30/01/2025
Your tax code determines how much tax is deducted from your pay. While 1257L is the most common, different letters and numbers can affect how much you owe. From marriage allowance to emergency codes, here’s how to decode what HMRC assigns you.
Your tax code is basically a set of letters and numbers that show whether you are entitled to
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Reforms to taxation of non-doms from April 2025
30/01/2025
From 6 April 2025, the remittance basis of taxation will be scrapped in favour of a residence-based system. A new 4-year Foreign Income and Gains regime offers tax relief for new arrivals, while transitional measures aim to ease the shift. Here’s what’s changing.
Effective from 6 April 2025, the remittance basis of taxation for non-UK
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Reminder of Employer’s NIC changes from April 25
30/01/2025
From 6 April 2025, employers will face a 1.2% rise in National Insurance contributions, alongside a lower NICs threshold. However, an increased Employment Allowance aims to ease the burden for small businesses. Here’s what you need to prepare for these key changes.
The main rate of secondary Class 1 NICs will rise by 1.2%, from 13.8% to
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Google to Tackle Fake Reviews Following CMA Investigation
28/01/2025
In a significant move to enhance trust in online reviews, Google has agreed to implement substantial changes to combat fake reviews, following an investigation by the UK's Competition and Markets Authority (CMA). This initiative aims to ensure consumers can rely on genuine feedback when making purchasing decisions.
Background
The CMA
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Understanding the UK’s Bank Deposit Guarantee Scheme
28/01/2025
The UK government offers a robust safety net for savers through the Financial Services Compensation Scheme (FSCS). This scheme is designed to protect individuals, small businesses, and charities if a bank, building society, or credit union fails, ensuring greater financial security and peace of mind.
How the Scheme Works
The FSCS
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It is not always possible to mend fences – Reinstatement is not always a practicable option where there is a breakdown in employment relations
28/01/2025
The Employment Appeal Tribunal (EAT) upheld claims of constructive dismissal and disability discrimination against Whyte & Mackay Limited (W&ML) in the case of Mr. Duployen , a former forklift truck and warehouse operator, following his termination.
W&ML had appealed the ET's decision on several grounds, seeking
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Rolling over capital gains
23/01/2025
Business Asset Rollover Relief allows you to defer Capital Gains Tax (CGT) when reinvesting proceeds from selling business assets. By rolling gains into the cost of new assets, tax is postponed until the new asset is sold. Learn how this relief can optimise your business investments.
Rolling over capital gains is a useful way to defer
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