A second house can be a good investment but with so many changes to tax laws at the moment, you may start to wonder is it worth it. Some of the few things that you would need to consider are: Continue reading “Is it worth having a second house?”
Accounting for bloggers is a four part email series. This first post gives you an idea of what the email series will be about and starts by looking at allowable expenses.
Whether you have just started blogging or you have been blogging for a while, one of the things that you might need to think about is money. This four part series will look into how you can start getting organised and be prepared for any tax liabilities. Continue reading “Accounting for bloggers – Part 1”
The Marriage Allowance has been around since 5 April 2015. It allows you to transfer 10 % of your Personal Allowance (£1,150) to your husband, wife or civil partner – if they earn more than you. This reduces your partners tax by up to £230.
Who can apply for Marriage Allowance?
You need to meet the following conditions in order to apply for the marriage allowance:
· You and your partner were born after 6 April 1935
· You’re married or in a civil partnership
· Your income is £11,500 or less
· Your partner is a basic rate taxpayer (ie. income between £11,500 and £45,000 or £43,000 in Scotland)
If all these conditions apply, you claim can be backdated to include any tax year since 5 April 2015 that you were eligible for Marriage Allowance. You will keep getting the tax break in the future too as long as the eligibility doesn’t change. If your circumstances do change, you or your partner can cancel the marriage allowance online.
How to apply
To apply for it online, follow this link https://www.gov.uk/apply-marriage-allowance
To apply by phone, you can call HMRC on this number 0300 2000 3300
You will need yours and your partners national insurance number and something to prove your identity.
More information can be found here:
As usual, if you would like any further details on this or any other accountancy matters, please follow this link:
In the meantime, here is a download for next month’s tax deadlines: October tax dates
Class 1 national insurance is due to HMRC if you are in employed work and are earning a salary at a certain level. Class 2 national insurance will be abolished in April 2018 leaving only a new potentially reformed Class 4 national insurance for self-employed workers. The Class 4 NI could be changed to make it more like Class 1 NI with entitlement to state benefits that are currently available by paying Class 2 NI. So, for that reason, I will look at Class 1 NI in more detail here. Continue reading “National Insurance Class 1”
VAT was originally introduced as a simple tax on purchases of goods and services in 1973. It was originally called the purchase tax but changed its name to VAT when the UK joined the EEC. VAT is now anything but simple. It is an indirect tax charged on the purchase of goods and services. Most goods and services in the UK are charged at the standard rate of VAT which is currently set at 20%. Continue reading “VAT rates in the UK”
What is a sales invoice?
- For tax purposes, HMRC require companies to keep evidence of sales made for at least 6 years and up to 10 years in certain circumstances. Companies also need a record of all the sales made in order to complete the year end accounts and calculate the amount of tax owed.The details on the invoice will show what you have supplied which can then help protect a business against any disputes.
- By reconciling the debtors on a regular basis will highlight any outstanding debts that need to be chased.
- Analysing the invoices can also be a good marketing tool to see how, what, where and when the products and services are being sold and which employee is making the most sales.
What needs to be shown on an invoice?
These are just my favourite accounting apps and in the link to their website, which can be found by clicking the title, has no affiliate links that I benefit from. There are obviously so many accounting apps out there that will help you sort out your finances and keep you on top of your paperwork and sometimes you just have to use trial and error to find the ones you are happy with. Continue reading “My Favourite Accounting Apps”