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. […]
Understanding the Basics When it comes to claiming capital allowances, cars are treated differently from other business assets. Although business owners can claim capital allowances on cars used for business purposes, sole traders and partners also have the option of using the simplified expenses method instead. It’s important to note that if you’re using the […]
When Work Meets Leisure Sunny skies often spark dreams of holidays, but for many business owners, work doesn’t stop just because you’re away. So, if you find yourself meeting a supplier or client during your personal trip, can you claim the travel and hotel expenses? The short answer: it depends. HMRC allows deductions for expenses […]
Providing meaningful health and welfare benefits to employees not only supports their well-being but can also be done without incurring additional tax liabilities. HMRC allows a range of health-related benefits that can be offered tax-free, provided certain conditions are met. Here are five valuable options that employers can consider. 1. Health Screenings and Annual Medical […]
Understanding the Basics for the Self-Employed If you’re self-employed and your profits exceed the lower profits limit, currently set at £12,570 for 2025/26, you’re required to pay Class 4 National Insurance contributions. These are charged at 6% on profits between £12,570 and £50,270, and at 2% on profits above that threshold. Importantly, paying Class 4 […]
Tax-Free Options for Your Savings As we enter the 2025/26 tax year, there are still several ways for individuals to earn interest on their savings without incurring tax on it. The UK tax system offers a range of allowances and rates to help savers make the most of their income. These include the personal allowance, […]