August Newsletter
I watched the funniest show at the fringe last week, called the Drag-queen Accountant. It was a lovely show and very funny.
I love when people can laugh at how bizarre their profession can be. Hope everyone had a great time at the fringe.
Other small things to remember:
From the 2023/24 tax year onwards, the self assessment (SA) threshold for taxpayers taxed through PAYE only, will rise to £150,000 from £100,000 in previous years.
All sole traders need to file their self-assessment returns through MTD from April 2026. So if you are a sole trader or self-employed, get your accounts on Xero, Freeagent, Quickbooks etc sooner rather than later 😊
What You Need to Know About PAYE
PAYE and how it affects HMRC on a monthly basis:
I know, I know – taxes and payroll can be a bit mind-boggling, but fear not! I'm here to break it down and make it painless.
So, let's unravel the mysteries of PAYE, ensure your payments are on point, and even sprinkle in some details about that sweet thing called Employment Allowance.
Understanding PAYE and HMRC:
When you run a payroll, you are not just paying your employees, but you also have to pay HMRC the tax deducted from staff as well as the national insurance due to (both employer and employee class 1 national insurance)
Here's the scoop on how it all syncs with HMRC every month:
Registering for VAT, and How to Prepare
Today, we're diving into a topic that might seem a bit overwhelming at first glance, but trust me, it's not as scary as it sounds: getting VAT registered in the United Kingdom. Now, I know what you're thinking – taxes and paperwork, ugh! But don't worry, I'm here to guide you through the process and make it as painless as possible.
Why VAT Register at all?
First things first; let's clear up why you might need to become VAT registered.
Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. In the UK, if your business's taxable turnover exceeds a certain threshold (which is currently £85,000), you're legally required to register for VAT.
What is turnover you might ask? Great question!
In the context of VAT registration in the United Kingdom, "turnover" refers to the total sales or supplies your business makes, usually over a specific period, typically a year. This turnover determines whether your business needs to register for VAT with His Majesty’s Revenue & Customs (HMRC).
For VAT purposes, the term "taxable turnover" specifically refers to the total value of goods and services you sell that are subject to VAT. This excludes any sales that are exempt from VAT or outside the scope of VAT. Here's a breakdown of what's included and what's not: