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What Is A Payment On Account? Understanding the UK Tax System A common source of confusion in the world of taxes, especially for those new to self-employment in the UK, is the ‘Payment on Account‘ system. With this post, we aim to demystify this concept for you in simple and easy-to-understand terms. What Is A […]

We’re back with another blog post and this time we’re diving into a topic that isn’t everyone’s cup of tea – taxes. But don’t worry, we’re here to make it as enjoyable and straightforward as possible. Strap in and let’s demystify the new corporation tax rules together. What are the changes? As of April 1st, […]

Are you ready for some capital allowances fun? 🙌 🥳 Yeah, we know it’s not the most exciting topic, but stick with us because it’s important. Capital allowances are like the superhero of the UK tax system, providing businesses with tax relief on certain types of capital expenditure. However from April 2023, they’re changing!  Super […]

As we are in the middle of wedding season, it’s worth reminding everyone about marriage allowance. This extra bit of tax relief could be especially helpful to people now during the cost of living crisis. What is marriage allowance? Marriage allowance lets you transfer 10% of your unused personal tax allowance to your husband, wife, […]

If you complete a tax return you may have to pay your tax twice a year. This sounds like it should be bad, but it can be a helpful way of spreading your payments throughout the year. What are payments on account? Payments on account are made twice a year and are payments that you […]

If you are just about to become a sole trader, or have been one for a while, you might be wondering whether it is worth getting a separate bank account for your business. There is no legal requirement for sole traders to have a separate bank account for their business unlike Limited Companies which are […]

Depending on which service you are on, you will find that you receive requests from members of our team asking for copies of your bank statements.  You may receive different emails from different team members depending on the work they are undertaking for you.  Whilst we try to eliminate asking for the same information on […]

HMRC rules currently allow employers to spend up to £150 tax-free per employee per tax year, on events such as Christmas or summer parties. This has been the case since 2003. The tax and advisory firm Blick Rothenberg has called on the government to double this amount to £300 as they believe the current limit […]

Each year HM Revenue & Customs (HMRC) undertake an enormous number of tax enquiries into individuals and businesses to check they have paid the right amount of tax. Since 2010 HMRC have strengthened their approach to enquiry work by using wider powers and sophisticated software and consequently a record £36.9 billion of additional tax revenue […]

When asked “What does an accountant do?” many people answer with accounts, tax or compliance work. While that’s true, what many don’t know, is that the good ones do so much more. The best accountants will become a part of your team; they will give you strategic advice to save money and boost revenue, they […]

From the 1st March, the VAT reverse charge scheme now applies to construction. If you work in the construction industry and are VAT registered, this applies to you, your suppliers and your customers. If you are not VAT registered or do not work in the construction sector you can ignore this blog but feel free to […]

The UK Prime Minister, Boris Johnson, UK Chief negotiator David Frost and EU negotiator Michel Barnier continue to offer differing messages to the public about Brexit, some are positive, some ambivalent and occasionally negative remarks about the negotiations. It is hard to see through the comments made and whether we can take them at face […]

Your self-assessment tax return is the document that is needed to calculate how much tax you owe personally. This return includes your dividends, employment income, rental income etc. One way to ‘stress out’ your accountant is to send them your tax return information in January. However, many people don’t understand why January is so stressful […]

…… AND WHY! It’s that time again ….. tax returns! From the 6th of April, accountants start to request information from clients. In this blog, we will go through what information accountants need and why. At 1 Accounts we request the below information from all of our clients via our Karbon software. A secure virtual […]

Working from home relief = FREE CASH Due to the current pandemic, many businesses have been working from home this year (ours included). It looks like those who can work from home will be until March 2021 at the earliest. We have also seen a change in attitude towards flexible working. It has become the […]

Ask HMRC to verify you had a new child which affected your eligibility for the self-employed income support scheme.  If you are self-employed or a member of a partnership, and having a new child affected the trading profits or total income you reported for the tax year 2018 to 2019, use the HMRC form to […]

“Should I buy a car or a van” is a question we frequently get asked at 1 Accounts. Our recommendation is usually van. This is because you can claim back the VAT and the taxable benefit in kind is usually much less than a car (unless electric). As the benefits of buying a van outweigh […]

Choose how and when you can delay making your second payment on account for the 2019 to 2020 tax year. You have the option to defer your second payment on account if you are: registered in the UK for Self-Assessment and finding it difficult to make your second payment on account by 31 July 2020 […]

VAT – REDUCED RATE OF 5% The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to: hospitality hotel and holiday accommodation admissions to certain attractions The temporary reduced rate will apply to supplies that are made between 15 […]

The deferral of VAT payments due to coronavirus comes to an end on 30 June and businesses need to take action to reinstate their direct debit mandates. The Institute of Chartered accountants in England and Wales (ICAEW) Tax Faculty has reminded its members. The VAT payment deferral means that all UK VAT-registered businesses have the […]

Sole Traders to get second grant from the Government. The government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, the Chancellor announced on Friday 29 May 2020. Rishi Sunak announced the Self-Employment Income Support Scheme will be extended – with […]

The help and advice that is available from the Government is forever changing. This is the latest update we have on how to apply for the self-employed grant.  For those who are eligible, you will receive an EMAIL, not a letter as we had thought. Be aware that there are lots of phishing emails out […]

Capital Gains rules are changing! If you are a property investor or “accidental” landlord this is the blog for you. From the 6th of April 2020 the changes to Capital Gains tax rules will affect the sale of second homes and rental properties. . Capital Gains Tax Capital Gains Tax is paid at the following […]

Lately we have seen an increase in HMRC asking people if they have received rental income. This comes in the form of a ‘love letter’ from HMRC.

Don’t let the Christmas period get in the way of the self-assessment deadline! Christmas is always a busy time of year, but for us it doesn’t stop after the festivities are over. With the Self-Assessment tax return deadline on January 31st, January is our busiest time of year. A self-assessment tax return is required if […]

No one wants a Tax Investigation. It is true that as business owners we don’t want HMRC asking awkward questions and taking up our precious time by visiting us on a routine (or not!) compliance visit. This week two of our clients have been subject to compliance visits from HMRC, one for PAYE and CIS, […]

Is the Jaguar i-pace a good company car? Here at 1 Accounts in Haverhill and Cambridge we are often asked can I buy a car within the company?  The answer is of course yes. However when benefit in kind tax and class 1A National Insurance is explained our clients most likely either buy the car […]

Making Tax Digital – Are You Ready? July 2019 marks the period that you have to submit your VAT returns using HMRC’s new Making Tax Digital (MTD) regime. Already Accountants, VAT registered businesses and HMRC are struggling to cope. Take a look at Accounting Web’s report on how HMRC’s systems were already struggling in May […]

2018 Tax Returns A note from Paul This year has been really strange for me in preparing for January and completing over 160 Tax Returns in one month.  A Challenge that I was prepared for and it was 60 less than last year! Today is 25 January and we have 9 left to do which […]

Fact:  All of our clients are Making Tax Digital (MTD) compliant because they use the latest online accounting software provided by the market leaders – Sage and Xero. What is Making Tax Digital (MTD)? Making Tax Digital (MTD) is a government initiative which aims to transform the administration of tax to create a simpler, more […]