The Construction Industry Scheme (CIS) is a tax deduction scheme requiring contractors to deduct tax from payments made to subcontractors working in the construction industry. Contractors must register for the scheme and verify the tax status of subcontractors that they engage. They are also required to submit monthly returns online to HMRC detailing all payments made to subcontractors in the previous month. Contractors must deduct a percentage of tax from these payments and

HMRC requires businesses to register for VAT if their taxable turnover exceeds £90,000 in the last 12 months or is expected to exceed this threshold within the next 30 days. Registration must be within 30 days of the end of the month in which the limit is exceeded (or, if the limit will be exceeded in the next 30 days, by the end of that 30-day period). Failing to register when required could result in penalties, back payments of VAT owed and interest charges. HMRC reviews t

The 2025 Budget on 26 November 2025 is expected to be crucial for the long-term implications for the UK economy – announcements of tax increases are expected. It is also expected to include further detail confirming HMRC's digital roll-out (particularly Making Tax Digital) plus further digital implementation in the form of e-invoicing. E-invoicing has been in use in various forms for a number of years and, internationally, over 80 countries have e-invoicing mandates, with the

The Sunday Times’ property supplement has recently highlighted cases of homeowners who have extended their properties and been caught out by the community infrastructure levy (CIL, dubbed the ‘extension tax’) and been left with large and unexpected bills. We take a look at the nature of the CIL and explain when it applies and when exemptions are available. Nature of the CIL The CIL is a charge that can be levied by local authorities on new development in their area. The aim i

When a landlord buys a new property to let out, they may need to undertake some work prior to the first let, particularly if the property is tired or in need of updating. The extent to which relief will be available for the costs of updating the property will depend on the nature of those costs. Start of the property business If the property in question is the landlord’s first property, they will not have an existing property rental business. The property rental business norm

In light of the erosion of landlords’ rights in the Renters’ Rights Bill, together with a raft of adverse tax changes in recent years, many buy-to-let landlords have come to the decision that it is now time to sell. However, in the current buyer’s market, it may take some time to find a buyer and for the sale to go through. During this period, the landlord may incur costs. The extent of any tax relief and the way in which it is given will depend on the nature of those costs.

The rate at which a company pays corporation tax depends on the level of its taxable profits. Where a company’s profits are below the lower profits limit, corporation tax is charged on all profits at the rate of 19% and where a company’s profits are more than the upper profits limit, they are all taxed at the rate of 25%. However, where the profit falls between these limits, corporation tax is charged at the rate of 25% and reduced by marginal relief. The effect of this is to

The normal filing deadline for the 2024/25 Self Assessment tax return is 31 January 2026. However, if you have some tax to pay under Self Assessment and you also pay tax under PAYE, if you file your return by 30 December 2025, you may be able to pay what you owe through an adjustment to your tax code rather than through the Self Assessment system. This may be the case if, for example, you are employed or receive a pension and also have some income from self-employment or prop

A press release recently published by HMRC revealed that 758,000 young people between the ages of 18 and 23 have a Child Trust Fund which has matured but which they have not claimed. The average Child Trust Fund account is worth £2,242. Nature of a Child Trust Fund A Child Trust Fund is a tax-free savings account that was available for children born between 1 September 2002 and 2 January 2011. The scheme closed in 2011. Payments of up to £9,000 a year can be made into an exis

A taxpayer may have grounds for appealing a penalty if they have a reasonable excuse for missing a filing or payment deadline. However, it is important to realise that the appeal will only succeed if HMRC accept that the excuse is indeed reasonable. In this regard, the bar is set high. The first point to note is that there is no statutory definition of ‘reasonable excuse’. Whether a person has a reasonable excuse depends on the circumstances in which the failure to meet the o

Legislation has been published in draft for inclusion in the Finance Bill which will bring unused pension pots within the charge to inheritance tax from 6 April 2027. In light of this change, pension savers may be considering withdrawing pension funds to prevent such a charge. Is this a good idea? The first point to note is that this is not yet law and, assuming it does come into effect, it will not do so until 6 April 2027. Therefore, there is no need to be hasty. There is a

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If you are new to Self Assessment and need to submit a tax return for 2024/25, you will need to register for Self Assessment. This should...

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Businesses must register for VAT when their turnover exceeds the registration threshold (currently £90,000). This must be done if, at the...

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