What is ATED? The Annual Tax on Enveloped Dwellings (ATED) is a charge levied primarily on non-natural persons—typically companies—that own UK residential property valued over £500,000. If your company owns such a property and none of the exemptions apply, an ATED return must be filed, and the corresponding tax must be paid. Key Filing Dates […]
Why Pension Contributions Matter Saving into a registered pension scheme remains one of the most tax-efficient ways to plan for retirement. Whether you’re an individual, a business owner, or an employer, making pension contributions can offer valuable tax relief. Contributions can be made for yourself or on behalf of someone else, and employers are also […]
The Shift is Here: MTD for Income Tax Confirmed After several years of delay, the launch of Making Tax Digital (MTD) for Income Tax is finally happening. This new phase will significantly change how millions of self-employed individuals and landlords report their income to HMRC. As announced in the Autumn Budget 2024, by the end […]
A New Era for Landlords Begins in 2026 The way landlords report rental income to HMRC is about to undergo a major shift. Starting in April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will come into force for many landlords. This change means moving away from traditional paper records and […]
A New Era for Employers Starting 6 April 2025, significant changes to National Insurance contributions (NICs) will take effect, impacting employers of all sizes across the UK. Here’s what to expect: Lower Threshold, Higher Rate: The secondary threshold—the point where employers start paying NICs on employees’ earnings—will drop to £96 per week (£417 per month […]
Understanding Business Entertainment Rules When claiming tax relief on business entertainment, HMRC has made its stance clear: most entertainment costs are not tax-deductible and cannot be used to reclaim VAT. Even if the expense is a legitimate part of running a business, it’s generally not allowed. However, there are some important exceptions worth understanding. What […]
Understanding Tax Relief on Work-Related Expenses Employees who pay out of pocket for work-related expenses may be eligible for tax relief—provided these expenses are not reimbursed by their employer. To qualify, the costs must be incurred wholly, exclusively, and necessarily in performing work duties or meeting specific deductibility rules, such as those for travel costs […]
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, […]