Income tax calculator

The introduction of special tax allowances, rates and rate bands which interact differently depending on your level and type of income has made the calculation of income tax liability far from straightforward. Our calculator can be used to work out your income tax liability, and can be used where you receive any combination of earnings, savings income, dividends and most other types of income. It will also calculate any adjustment required to finance costs relating to letting income.

VAT flat rate scheme tool

HMRC offers a simplified scheme for small businesses to work out and account for VAT. This can offer a financial and administrative advantage.

Company car capital contribution calculator

A company car is taxed according to its list price. This can be reduced if you make a capital contribution towards the purchase of the car. This calculator shows you how much tax could be saved.

Alternative ways to challenge HMRC

After several months of trying to get your point across to HMRC you’re getting nowhere. Might a formal review help resolve the issue and how do you go about applying for one?

Director's or employee's loan account record

Director’s loan account record A taxable benefit in kind may arise where a director is provided with a loan, either interest free or at a rate of interest below HMRC’s official rate (3% for 2016/17). Use this document to calculate what, if anything, you need to declare to HMRC. Make a note Where a cheap rate or interest-free loan is no more than

Dividend waiver

A dividend waiver is a document produced by a sharelder to show that they have given up (waived) their right to one or more dividends that they would otherwise be entitled to. A waiver can be used in income tax and inheritance tax planning but it must be made as a deed or HMRC will not accept its validity.

Business Tax

Everything from benchmark subsistence rates to VAT flat rate scheme percentages

Capital Taxes - CGT and IHT

ATED, CGT, IHT, HMRC interest rates, indexation allowance

Corporation Tax Rates

All the corporate tax rates, charitable giving, returns and enquiries

Multiple agents for MTD ITSA will be permitted

One-person companies and the employment allowance

The NI employment allowance has increased from £5,000 to £10,500. The bad news is that companies with only one person who’s also a director on their payroll aren’t entitled to it. How can they qualify with just one simple low-cost step?

Permanent increase to penalty interest rates

The new tax year saw a change to the way interest on late paid taxes is calculated. What’s changed and what are the new charges?

Income splitting - tackling the practical issue

You recently started a new business which you run through a company. You’ve been told that you can reduce your tax and NI bill if you issue your spouse with shares in the company. Assuming that’s correct, what are the practicalities involved?

How to pay a tax-efficient golden handshake

One of your firm’s directors is retiring soon and the board want to pay him a lump sum to reward his long service. The trouble is that golden handshakes are usually taxable. Is there a more tax-efficient alternative?

Can you claim input tax on overseas sales expenses?

Your business sells goods and services to overseas customers, and you do not charge VAT. Can you still claim input tax on any UK expenses that directly relate to these sales?

MONTHLY FOCUS: THE ENTERPRISE INVESTMENT SCHEME QUALIFYING CONDITIONS

The enterprise investment scheme (EIS) is a generous collection of tax reliefs aimed at encouraging private investment into relatively young companies. In this Focus, we look at the qualifying conditions relating to the investor and the issuing company that must be met in order for a claim for relief to succeed.

MONTHLY FOCUS: PROFIT EXTRACTION FOR 2024/25

The 2024/25 tax year has been a reprieve from the fiddly tinkering which has plagued profit extraction in recent years. There have been no in-year changes to NI rates or corporation tax rates etc. to deal with. As a result, you can focus on your remuneration strategy with more clarity. This is a welcome relief - especially as the 2024 Autumn Budget means 2025/26 will be a different story! This Monthly Focus will help you to form a profit extraction strategy that will keep more of your profit in your bank account and not HMRC’s. 

MONTHLY FOCUS: INTRODUCING MAKING TAX DIGITAL FOR INCOME TAX SELF ASSESSMENT (MTD ITSA)

The move to MTD ITSA involves many changes regarding digital record keeping, plus new reporting and admin requirements for all businesses to which it applies. This month's focus guides you through what to expect from MTD ITSA and how to tackle the issues it will throw up.

Does income lose its nature over time?

Following the inheritance tax announcements at the 2024 Autumn Budget, your mother is keen to take advantage of the exemption for gifts out of income to reduce the value of her estate, with a gift to her grandchild. Will this work, and could HMRC argue that gifts from accumulated savings are capital in nature?

The 10% problem with charitable legacies

In 2024, the First-tier Tribunal (FTT) gave judgment in a case where an estate attempted to access the reduced inheritance tax (IHT) rate which applies when funds are donated to charity. What were the problematic points and what can you learn from it?

Year-end tax saving strategies

With the 2023/24 filing deadline out of the way, it’s time to focus on maximising efficiency ahead of the end of the 2024/25 tax year. What strategies are available to individuals and owner managers

HMRC links

Direct access to HMRC's most relevant resources