Category: Tax

If your income is £100,000–£125,140, you may fall into the 62% tax trap. This happens because your personal allowance (£12,570) starts to reduce: for every £2 you earn over £100,000, you lose £1 of your allowance. Combined with 40% income tax and 2% National Insurance, this raises your effective tax rate to 62% on additional…
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Many company directors assume they can withdraw cash as dividends anytime. In reality, dividends can only be paid from profit (not cash in the bank), are taxable above £500, and must be properly recorded. Mistakes in this area are common and can lead to unexpected tax bills or compliance issues. Contact us today to make…
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Many business owners pay more tax than necessary without realising it. With the right structure, your tax position can be significantly improved. Paying yourself a salary, claiming all allowable expenses, and making use of capital allowances are some of the most effective ways to reduce your tax bill. However, these strategies must be applied correctly…
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From 6 April 2026, dividend tax rates in the UK are increasing, with the basic rate rising to 10.75% and the higher rate to 35.75%, while the tax-free dividend allowance remains at £500. These changes mean that taking income as dividends will become less tax-efficient for many company directors and business owners, making it important…
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The UK government has published changes to income tax rates on dividend income, which will take effect from 6 April 2026. The ordinary rate on dividends will rise to 10.75% and the upper rate to 35.75%, while the additional rate remains at 39.35%. Separately, tax rates on property and savings income will change from 6…
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Tax Audits and Compliance in the United Kingdom In 2026–2027, HMRC continues to strengthen tax control over businesses in the UK. Tax reviews are increasingly based on digital systems, automated data analysis and risk-based monitoring, allowing authorities to quickly identify errors, inconsistencies or potential compliance issues. The most frequently reviewed areas include:• accuracy of VAT…
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For 2026–2027, the UK VAT registration threshold is £90,000 of annual taxable turnover. Once exceeded, a business must register for VAT and submit returns in line with HMRC and Making Tax Digital requirements. Voluntary registration is also possible and may benefit companies working with VAT-registered clients or those with significant input VAT expenses. If you…
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From April 2026, Personal Allowance – the amount of income you can earn before paying income tax – will be updated, along with National Insurance (NI) rates. This means your take-home pay and payroll contributions may change. Employees earning above the primary threshold will pay slightly more or less depending on the new NI bands.…
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Avoid fines by doing simple tax checks each quarter:• VAT – check invoices and turnover.• PAYE – make sure payroll contributions are up to date.• Corporation Tax – note filing dates and plan payments.• Director loans & dividends – review balances to avoid extra tax.• Digital records – keep accounts ready for HMRC or MTD.…
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Avoid fines by doing simple tax checks each quarter:• VAT – check invoices and turnover.• PAYE – make sure payroll contributions are up to date.• Corporation Tax – note filing dates and plan payments.• Director loans & dividends – review balances to avoid extra tax.• Digital records – keep accounts ready for HMRC or MTD.…
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