Author: Wojciech
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Does Making Tax Digital include pensions
The Simple Answer: Pensions Are Not Included Making Tax Digital does not include pensions. This new system is only for people who have: What Is Making Tax Digital? Making Tax Digital is HMRC’s new way of reporting taxes. Instead of filling in a paper tax return once a year, you use special software to keep…
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Do I Have to Use Making Tax Digital ?
Making Tax Digital (MTD) is a UK government initiative designed to streamline tax administration. If you’re a sole trader or landlord, you might be asking, “Do I have to use Making Tax Digital?” The answer depends on your total income from self-employment or property. MTD for Income Tax is being introduced in phases, so it’s…
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Why Accountant Needs My ID
The main reason your accountant needs your ID is to comply with Anti-Money Laundering (AML) regulations. In the UK, accountants are legally required to check who they are working with. These rules help stop illegal activities like money laundering and terrorist financing. Many self-employed people are surprised when asked for a passport, driving licence, or…
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Is Income Protection Insurance Tax Deductible for the Self Employed
Understanding the tax implications of various insurance policies can be a complex area for self-employed individuals in the UK. When it comes to income protection and key person insurance, the rules are nuanced, primarily revolving around HMRC’s ‘wholly and exclusively’ rule. Standard Income Protection Insurance For the vast majority of self-employed individuals, the premiums paid…
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Winter Fuel Payment Opting Out Paying Back
If you’re a UK pensioner, you might automatically receive the Winter Fuel Payment to help with your heating bills. This payment can be between £100 and £300. However, there are times when you might need to opt out of receiving it or even pay it back. Opting Out of the Payment Some pensioners may choose…
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Does Painter and Decorator Need Accountant
If you’re self-employed, you might be asking yourself: does painter and decorator need accountant? The short answer is that it’s not a legal requirement, but having one can save you time, reduce stress, and even lower your tax bill. Responsibilities of a Self-Employed Painter and Decorator When you work for yourself, you are fully responsible…
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self employed expenses for both business and personal use
What if I use something for both business and personal reasons? This is a common situation, especially for self-employed individuals. The key rule is that you can only claim the business portion of the cost. You need to work out a fair way to divide the cost between business and personal use [1]. Example: Imagine…
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What are capital allowances for self-employed
Sometimes, you buy larger items for your business that you’ll use for a long time, like equipment or vehicles. These are called ‘capital assets’. Instead of claiming the full cost as an allowable expense in one go, you claim ‘capital allowances’ over several years. This spreads the tax relief over the item’s useful life. Common…
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What self employed expenses can i claim
What are Allowable Expenses? Allowable expenses are simply the costs of running your business. To be ‘allowable’, an expense must be ‘wholly and exclusively’ for business purposes. This means the cost must be entirely for your business and not for personal use. If something is used for both business and personal reasons, you can only…
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When to Register for Self Assessment: Don’t Miss the Deadline
Even if your self-employed profits are below the Personal Allowance and you don’t anticipate owing any Income Tax, if your gross self-employment income surpasses the £1,000 Trading Allowance in a tax year, you are legally obligated to register for Self Assessment with HMRC. This is a critical step to ensure you are compliant with tax…