When starting a business, it is usually as self-employed or as a partnership. As the business grows, working through a company may be considered for several reasons (limited liability being one of the more important).

Owner-managers can extract funds from the company in various ways. Typically, the working shareholders may well, in addition to drawing a normal salary, decide whether to extract surplus profits by means of a bonus or dividend.

The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are : Late payment interest rate — 7% from 31 May 2023. Repayment interest rate — 3.5% from 31 May 2023.

HMRC is raising awareness of the tax treatment of termination payments related to Income Tax and National Insurance Contributions (NIC). Several changes have been made to these rules over the past five years, which HMRC wants to remind accountants and employers to consider when finalising severance packages.

When you’re UK resident you’re normally taxed on the arising basis of taxation. This means that all your worldwide income and gains will be taxable in the UK. Therefore, even if your foreign income and gains have already been taxed in another country, they will still be taxable in the UK, and you must declare all of your foreign income and gains on your tax return.

The Apprenticeship Levy was first announced in the Summer Budget 2015 and it was later confirmed in the Autumn Statement 2015 that the levy would be introduced from 6 April 2017. Primary legislation was subsequently included in the Finance Act 2016, Pt. 6 (s. 98 – s. 121) and secondary legislation (Income Tax (PAYE) Regulations 2003, Pt. 7A) was inserted with effect from 6 April 2017.

The term ‘travel expenses’ includes the actual costs of travel together with any subsistence expenditure and other associated costs that are incurred in making the journey. Tax relief is available only where travel is in the actual performance of the duties or where it’s necessary.

You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.You can claim tax relief if you have to work from home, for example because: Your job requires you to live far away from your office.Your employer does not have an office.

Cut the basic rate of income tax to 19%, Currently, people in England, Wales, and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270,
45% higher rate of income tax abolished ,One single higher rate of income tax of 40% from April next year.

A Director’s Loan Account (DLA) is “Money taken from your company’s accounts that cannot be classed as salary, dividends or legitimate expenses”. In many cases, Directors are unaware that even owe money to the company.