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What is Capital Gains Tax? A capital gain or loss is the difference of what an asset cost you and the value you receive when you sell or dispose it. In a gain the value of disposing or selling the asset is higher than what the asset cost you. The tax paid on capital gainsRead more

What is the Self-Assessment Tax Return? Your self-assessment tax return is a system used by the HMRC to collect tax from certain taxpayers. Under this system, the tax return (SA100) must be completed yearly and taxpayers’ details like their income, capital gains, claim allowances and reliefs must be clearly shown. When completing this legal document,Read more

IR35 is properly known as “intermediaries legislation”. It is more commonly referred to by the consecutively numbered Inland Revenue (now HMRC) budget press release number 35 in which it was announced (i.e. the 35th press release of that year), titled “IR35: Countering Avoidance in the Provision of Personal Services”. IR35 is the United Kingdom antiRead more

UK limited liability partnership came to life on April 6th, 2001 after the LLP act 2000 was effected. Since then Limited Liability Partnerships have grown in popularity because they combine the following benefits; Limited liability protection of all members. Corporate status benefits because it is a separate legal entity. The ability to be taxed andRead more

Should I be a Limited Liability Company or a Sole Trader? In an age where entrepreneurship and technology are developing in a fast pace, many people find themselves wanting to run their own business instead of remaining employees. The UK is an ideal place to start a business since it has one of the lowestRead more

What is a Limited Company? A Limited Company (also known as a limited liability company in the UK) is a private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invested. Owners of the limited company are called members or shareholders. Shareholders own shares inRead more

Tax is a key source of funds that the government uses to provide services to the public and support its own administrative activities. Income tax is a type of tax levied by the UK government directly on personal income. Who must pay income tax There is a simple three-step test to determine whether you shouldRead more

THE BASICS OF CORPORATION TAX IN THE UK In the same way that individuals are liable to pay personal tax on their taxable income, companies are also liable to pay corporation tax on their taxable profits. Corporation tax does not apply to the profits made by sole traders or regular employees. What is Corporation taxRead more

What is a Sole Trader? Starting your own business for the first time can be an exciting yet daunting experience. Before you can begin trading there are a number of important decisions you have to make that will affect your business in a number of ways. This ranges from the type and amount of taxRead more