Here at Three Kings Accounting, we cannot stress enough the importance of submitting your tax returns to HMRC on time. Many people aren’t fully aware of the implications of failing to do so by the deadline and so usually need help with late tax returns. In this article, we are going to look at the penalties that can apply to these situations and how you can get help with your tax liability to avoid these unnecessary penalties.
Continue readingWhen you are running your own business, there are many things that you need to keep in mind and many different factors to focus on. One of the key ones is how you can extract profits from the business in the most tax-efficient way. So, in this article, we will talk about the most tax efficient way to pay yourself.
Continue readingMaking Tax Digital (MTD), the new scheme from HMRC, which requires VAT-registered businesses to use a digital system to file their taxes, is now up and running. All businesses with a turnover which is above the VAT threshold (£85,000 in 2019) are required to keep digital records for VAT and use compatible software to give their records to HMRC.
Continue readingCompany cars are a great perk, but they also come with obligations to HMRC. If you provide or receive a company car, you need to report any vehicles used on private journeys, the fuel used on those journeys, and any adaptations made for employees with disabilities. If you’re an employee, you may need to pay both the “company car and fuel benefit” – this is a benefit in kind (BIK) tax.
Continue readingLimited companies enjoy a large number of deductions from your taxable turnover. You can deduct the costs of running your business (including salaries) from your tax bill. Mileage, training, and accommodation also count. However, expenses must fall into the category of being “wholly and exclusively for business purposes.” So, if you use your weekend training trip as a family weekend away, you need to sort your expenses carefully.
Continue readingAre you wondering when is the earliest you can file taxes in 2019? The majority of people in the UK pay income tax through the PAYE system. If you’re employed, a portion of your salary will be taxed, and your tax contributions will usually be deducted from your monthly wage packet.
Continue readingValue-added tax (VAT) is charged on most goods in the UK. Some goods are exempt, and others have lower rates added to them, but most are charged at the standard VAT rate of 20%. Many very small businesses don’t need to register for VAT, but once your annual turnover passes the threshold, which is currently £85,000, it’s compulsory. You can also voluntarily register before reaching the threshold, which is useful for some businesses so they can get in the habit of charging VAT. If you’re wondering how does VAT work, take a look at the information below.
Continue readingThe end of the financial year is a big moment for any company and having everything organised ahead of time can save you a lot of stress and worry. Too many businesses go into crunch time, desperately working to get everything they need to be done before that year-end. Here, we’re going to look at a year end accounting checklist of accounting tasks you have to complete, so you can get to work on them in advance.
Continue readingIf you’re carrying out work or earning money independently (i.e. not as an employee), you need to register as self-employed. You could be a plumber or electrician, someone who sells on eBay or Etsy, or a virtual assistant. However you’re earning money, if it’s not being taxed through PAYE, it needs to be taxed through self-assessment.
Continue readingWhen a new employee is hired, they will need a tax code. However, the tax code for the new employee will depend on whether or not a valid P45 has been handed to the new employer. In this article, we are going to talk about the UK tax codes for new employees. If the new employee has successfully provided the employer with a valid P45, then the employer should use the tax code that is stated on the P45.
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