Taxation in a Partnership: Who Pays What? In the UK, a partnership is not treated as a separate legal entity. Instead, the individual partners are responsible for tax and National Insurance contributions (NICs) based on their share of the partnership’s profits or losses. Each partner is taxed as if they are a sole trader, paying Income Tax on their […]
What is Adjusted Net Income? Adjusted net income is a crucial figure when it comes to calculating tax liabilities in the UK. It determines your entitlement to personal allowances and affects other tax-related calculations like the High Income Child Benefit Charge. In essence, adjusted net income is your total taxable income before personal allowances are applied, but after deducting […]
Why Consider Lending Through Your Company? There are various scenarios where you may wish to financially support a family member—such as helping a child with a deposit for their first home. If you own a personal or family-run company with retained profits, it might seem practical to lend the money directly from the company rather […]
Understanding When VAT Registration Is Mandatory If you’re operating a business in the UK—whether as a sole trader, in a partnership, or through a limited company—you must register for VAT when: Your total VAT-taxable turnover exceeds £90,000 over the past 12 months, or You expect your turnover to exceed £90,000 in the next 30 days alone. Important: If both you and your […]
The Appeal of Holding Property in a SIPP Using a Self-Invested Personal Pension (SIPP) to purchase and hold commercial property can offer some significant tax advantages, especially when the property is leased to your own business or family-run company. Instead of rent being paid to a third-party landlord, it’s paid directly into your pension scheme. […]
Choosing the Right Business Structure Starting a business involves many decisions, one of which is determining the legal structure. Should you operate as a sole trader, form a partnership, or establish a limited company? Your choice will impact your tax obligations, legal responsibilities, and overall business operations. For those who prefer a straightforward approach, becoming […]
The clock is ticking for homebuyers and investors! Significant changes to the Stamp Duty Land Tax (SDLT) rates will take effect from 1 April 2025, impacting both standard residential and first-time buyers. Completing your property transaction before this deadline could save you thousands of pounds in SDLT. Here’s everything you need to know to stay ahead. […]
Overpaying taxes is more common than many people realize, and when it happens, taxpayers naturally want to reclaim their money as soon as possible. The process for claiming a refund depends on how the overpayment occurred. Below, we outline the different scenarios in which you may be eligible for a tax refund and how to […]