Embracing digital accounting in today’s business world The way businesses manage their finances is changing rapidly, with digital tools now at the forefront of accounting processes. For small businesses, adopting digital accounting has become more than just a trend—it’s a necessity. By moving away from manual spreadsheets and outdated systems, SMEs can enjoy greater efficiency,...
Understanding the latest SME tax update Staying informed about the latest SME tax update is essential for small and medium-sized businesses navigating an evolving tax landscape. HMRC continues to adjust tax rules, reporting obligations, and digital requirements that directly impact SMEs. Missing these updates could result in unnecessary penalties, so business owners must stay proactive...
HMRC now estimates that 42 per cent of the 7 million taxpayers in income self-assessment for the 2023/24 tax year will need to comply with Making Tax Digital (MTD) for income tax. Of these 2.9 million people, 864,000 will need to comply from April 2026, roughly 1 million from April 2027 and a further 975,000...
A Win for Caregivers: PRR Relief Granted on Multiple Properties In a recent case, a caregiver who moved into his parents’ home to care for his ailing father successfully claimed Principal Private Residence Relief (PRR) on not one, but two separate property disposals. The First Tier Tribunal (FTT) sided with the taxpayer, confirming that his...
Stamp Duty Land Tax (SDLT) can be a confusing area, especially when dealing with run-down or damaged properties. A recent Court of Appeal ruling in the case Mudan v HMRC ([2025] EWCA Civ 799) brings important clarity to the residential SDLT rules, especially regarding properties in poor condition at the time of purchase. Background to...
Why did HMRC issue penalties? A recent decision by the First-tier Tribunal (FTT) has highlighted the importance of fully understanding your self-assessment (SA) tax return obligations. The case involved a taxpayer who misunderstood the requirement to file a return and faced HMRC penalties as a result. Despite the individual’s claim of confusion, the tribunal ruled...
The UK government is considering making e-invoicing mandatory for businesses. This move aims to enhance efficiency, reduce fraud, and simplify tax compliance. The consultation seeks input from businesses on how best to implement this system. What is E-Invoicing? E-invoicing refers to the digital exchange of invoices between businesses and tax authorities. Unlike traditional paper or...
Starting 5 April 2025, significant changes will affect sole traders and company directors regarding their Self-assessment tax returns. The UK government has enacted legislation mandating additional disclosures to enhance transparency and accuracy in tax reporting. Key Changes for Sole Traders For sole traders, the new requirements focus on the commencement and cessation of trading activities:...
Copyright by CareAccountancy. All rights reserved.
Copyright by CareAccountancy. All rights reserved.
