Understanding the Cash Basis for Tax Planning For unincorporated businesses, starting from 6 April 2024, the cash basis becomes the default method for preparing accounts. Unlike the accruals basis, which matches income and expenses to the relevant accounting period, the cash basis recognizes income only when received and expenses only when paid. This creates strategic […]
Changes to Furnished Holiday Let (FHL) Tax Benefits The beneficial tax regime for landlords operating furnished holiday lets (FHLs) is set to end on 5 April 2025. From the 2025/26 tax year onward, these properties will be treated like standard residential rentals. While this change removes the need to meet stringent letting and availability conditions […]
Understanding the Personal Allowance Everyone is entitled to a personal allowance—the amount they can earn tax-free before income tax applies. For the 2024/25 tax year, this allowance is set at £12,570. However, it is a use-it-or-lose-it benefit, meaning any unused portion cannot be carried forward to the next tax year. As the tax year-end approaches, […]
Planning for a Business Sale Careful planning is essential for business owners looking to retire or transition ownership. Ideally, planning should begin at least two years before the sale to optimize tax payments and preserve eligibility for Business Asset Disposal Relief (BADR), if applicable. The best approach depends on your financial goals: Minimizing risk and […]
Changes to Agricultural Property Relief (APR) Recent budget changes have placed farmers in the spotlight, particularly following the October 2024 announcement that, from April 2026, both Agricultural Property Relief (APR) and Business Property Relief (BPR) will be reduced. The 100% relief rate will only apply to the first £1 million of combined agricultural and business […]
Understanding the Capital Gains Tax Exempt Amount Every individual has a tax-free allowance for capital gains, known as the capital gains tax (CGT) annual exempt amount. Although this exemption has been significantly reduced in recent years—standing at just £3,000 for the 2024/25 tax year—it can still provide tax savings of up to £720 if utilized […]
Why Do Receipts Matter? You are often asked whether you want a receipt when making a purchase. While keeping receipts is not legally required for most personal transactions (unless both the seller and buyer are VAT-registered), they serve as valuable proof of purchase. Consumer rights remain intact even without a receipt, as other evidence—such as […]
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 […]
- 1
- 2