MA & CO Accountants

                                                                                    Listen to the MA & CO Podcast Introduction Self-assessment   can be confusing, but it’s important if you need to report your   income   and   taxable gains .   HM Revenue and Customs (HMRC)   uses self-assessment to collect   income tax   from individuals. This guide will help you understand how   self-assessment tax returns   work and what you need to do to stay compliant. What is Self-Assessment? Self-assessment   is a system that allows individuals to report their income and   capital gains   to   HMRC . It’s used to calculate the   income tax   you need to pay. Unlike   PAYE (Pay As You Earn) , where employ...

                                               Listen to the MA & CO Podcast Introduction Capital Gains Tax (CGT)   is a tax you pay on profits when you sell an asset that has increased in value. In the UK, both individuals and trustees have an   annual exempt amount . This exempt amount reduces how much tax you pay by allowing you to earn a certain amount of profit tax-free each year. Knowing the current exempt amount for individuals and trustees can help you plan your taxes effectively. Current CGT Annual Exempt Amounts For the   2024 to 2025 tax year , the   annual exempt amount   for   individuals and personal representatives   is   £3,000 , while for   most trustees , it is   £1,500 . Here’s a summary of the   annual exempt amounts   over the past few tax years: Tax Year Individuals & Personal Rep...

    Listen to the MA & CO Podcast Introduction VAT, or   Value Added Tax , is a tax that businesses must add to the price of goods and services. In the UK, different goods and services have different VAT rates:   standard rate (20%) ,   reduced rate (5%) , and   zero rate (0%) . Understanding which items qualify for a reduced or zero VAT rate can help businesses and consumers save money and stay compliant. This guide will explain what qualifies for these special VAT rates and why they are important. Understanding VAT Rates There are three main   VAT rates   in the UK: Standard Rate (20%) : This is the default VAT rate for most goods and services. Reduced Rate (5%) : This rate applies to some specific items like   domestic fuel   and   energy-saving materials . Zero Rate (0%) : Certain items, like   basic foods   and   children's clothing , qualify for this rate, meaning there is no VAT added at all. Let's look mor...

                                                                                     Listen to the MA & CO Podcast Introduction In the UK, VAT (Value Added Tax) is a crucial part of doing business for many companies. Knowing when you need to register for VAT and understanding how the VAT Flat Rate Scheme works can help you save money and stay compliant. This article explains the VAT registration threshold and how the Flat Rate Scheme is calculated. We will cover the basics and recent updates, so you know exactly what to do for your business. What is the VAT Registration Threshold? The VAT registration threshold is the maximum amount of taxable turnover a business can have before it must register for VAT. As of April 1, 2024 , this threshold is £90,000 . If your busi...

                                                                                     Listen to the MA & CO Podcast Introduction The UK R&D tax credit scheme helps businesses save money on taxes when they invest in research and development . This scheme encourages innovation and helps companies grow. It applies to both Small and Medium-Sized Enterprises (SMEs) and large companies , but the rules and benefits vary for each. In this guide, we explain how the R&D tax credit scheme works for SMEs and large companies. We also cover the recent changes introduced in 2023 . Understanding these changes will help your business stay compliant and take full advantage of available tax savings. 1. Overview of the R&D Tax Credit Scheme The R&D tax credit scheme helps ...

Listen to the MA & CO Podcast Introduction The Construction Industry Scheme (CIS) is essential for contractors and subcontractors in the UK construction industry . Following the CIS rules correctly helps avoid penalties and keeps your business running smoothly. In this guide, we will discuss the top five common CIS errors and provide tips on how to avoid them. Avoiding these errors can help you stay compliant and save money. 1. Understanding CIS Compliance CIS compliance means following all the rules set by HM Revenue and Customs (HMRC) for contractors and subcontractors. Under CIS, contractors need to deduct money from payments made to subcontractors and pass these deductions to HMRC. This helps cover the subcontractor's tax and National Insurance . If you do not follow the rules correctly, you could face fines or other penalties . 2. Common CIS Errors and How to Avoid Them The top five CIS errors that businesses often make are listed below. Let’s look at each error a...