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Recently, a business owner came to us after spending £14,500 on the services of an insolvency company that promised to resolve their financial problems quickly. However, the creditors continued their legal action, and the situation became even more complicated. Stories like this are more common than many people realise. When a business is under financial…
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At first glance, insolvency may seem like a simple way to close a company and leave financial problems behind. In reality, it is often a costly and complex process for small businesses. A formal insolvency procedure involves an independent insolvency practitioner, whose fees can run into thousands of pounds before the process even begins. For…
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Company insolvency means a business can no longer pay its debts or its liabilities have become greater than its assets. When this happens, the company may enter a formal legal insolvency process. An independent insolvency practitioner is appointed to review the company’s finances, identify creditors, and distribute any remaining assets according to the law. Their…
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One of the most common mistakes taxpayers make is confusing their UTR with their National Insurance number. Although both are issued by the UK government, they have completely different purposes. A UTR is a unique 10-digit number issued by HMRC to identify you for tax purposes. It is required when registering for Self Assessment, submitting…
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Once you join Making Tax Digital (MTD) for Income Tax, you must submit 4 quarterly updates to HMRC using compatible software. These are not tax returns—they are summary reports of your income and expenses for each quarter. Quarterly updates do not calculate the tax you owe. Instead, they provide HMRC with an overview of your…
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A UTR (Unique Taxpayer Reference) is a unique 10-digit number issued by HMRC to identify you for tax purposes in the UK. A UTR is required for self-employed individuals, partners in partnerships, and anyone who needs to file a Self Assessment tax return. It allows HMRC to link your tax records to your account. Without…
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From 6 April 2026, Making Tax Digital (MTD) for Income Tax becomes mandatory for landlords whose combined gross income from property and/or self-employment exceeds £50,000 per year. Please note that the threshold is based on gross income before expenses, not profit. The threshold will reduce to £30,000 from April 2027 and £20,000 from April 2028.…
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Paying dividends without sufficient retained profits is one of the most common mistakes made by company directors. Dividends can only be paid if the company has enough distributable profits available. Another frequent issue is failing to prepare the required paperwork. Every dividend payment should be supported by the appropriate documentation, including board minutes and dividend…
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Receiving dividends from a UK limited company can be a tax-efficient way to take income, but dividend payments are still subject to tax. The amount of tax you pay depends on your total taxable income and the current dividend tax rates. Dividends can only be paid from company profits after Corporation Tax has been accounted…
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One of the biggest misconceptions about Making Tax Digital is that HMRC gains full access to your bank accounts or accounting system. In reality, HMRC only receives the tax information required for reporting through MTD-compatible software. Making Tax Digital does not mean your business is under constant monitoring. Its purpose is to improve the accuracy…
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