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”
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”
In its most simplest definition, if you have a limited company, you would need to pay tax on your profits. This is called Corporation Tax. You would also need to pay corporation tax if you are an association, a club or co-operative. If you are a sole trader or a partnership, your profit is not subject to corporation tax and any tax you have to pay will be through your self-assessment. Continue reading “What is Corporation Tax?”
I’m still none the wiser as to what I am doing with my life. I’ve written about it in this post on Accountingweb which you can read here: confusion-and-plans
However, since writing this post, I was driving down from my mum’s house at around 7pm. Usually, I can take it or leave it when it comes to driving however, this time I really did enjoy the drive. The girls had both fallen asleep, (one of the main reason for driving home at around 7pm) and the sky was turning from bright yellow sunlight and wishing I had sunglasses on, to a red sky with orange streaks, to a dusky blue with strains of the leftover orange . It was so beautiful especially with my favourite Bollywood songs softly playing in the background (another ploy to get the girls to fall asleep). Continue reading “Still none the wiser”
A dictionary definition and its simplest explanation, income tax is the tax levied on personal income that you earn.
What is personal income?
Personal income that is taxed in this way is made up of:
- Income received from employment including benefits in kind
- Your profits on self-employment
- Pension received
- Rental income
- Some state benefits – a list of what is and isn’t taxable can be found here: https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
- Income from trust
As always, things are changing in our house and as usual I am in panic mode which means sleepless nights and worrying about things that are out of my control. Everything always works out for the best in the end so I should just relax and let go of what I can’t control. But as a worry wart, that’s one thing I can’t seem to do. Continue reading “Changes and worries”