June Roundup

As we move into the month of July, let's revisit our blogs from June - content designed to help you navigate the complexities of accounting with ease and confidence.

Payments on Account (2023/2024)

• Payments on Account (POA) are advance payments towards your personal tax and, where relevant, your Class 4 National Insurance bill.
• Read the full blog here

What is the VAT Flat Rate Scheme?

• The VAT Flat Rate Scheme (FRS) simplifies the way small businesses manage their VAT payments. Instead of calculating the VAT on every transaction, businesses pay a fixed rate of VAT to HMRC.
• Read the full blog here

What is Corporation Tax?

• Corporation Tax applies to the profits of limited companies and other organizations, gained from business activities, investments, and gains from selling assets.
• Read the full blog here

Student Loans

• Student loans are primarily provided by the government to help cover the cost of higher education. These loans are essential for many students who need to pay their university tuition fees and maintenance costs.
• Read the full blog here

What is Marriage Allowance?

• Marriage Allowance is a government initiative aimed at reducing the tax burden for married couples or civil partners. This allowance is only applicable if both partners are within the specified income brackets.
• Read the full blog here

Marriage Allowance Transfer

• Marriage Allowance Transfer allows one spouse to transfer a portion of their Personal Tax Allowance to the other, providing a tax reduction if certain conditions are met.
• Read the full blog here

Trivial Benefits

• A trivial benefit is a small gift or perk provided to an employee that costs ￡50 or less. Trivial benefits do not need to be reported to HMRC, and they are exempt from tax and National Insurance Contributions.
• Read the full blog here

Tax on Tips and Gratuities

• All tips and gratuities, whether received in cash directly from the customer or added electronically via card or cheque, are subject to Income Tax. Depending on how these tips and distributed, National Insurance may also apply.
• Read the full blog here

High Income Child Benefit Charge (HICBC)

• If you or your partner earn over ￡60,000 annually, you may be subject to the High Income Child Benefit Charge. The HICBC is a tax charge that applies if either you or your partner have an individual income exceeding ￡60,000.
• Read the full blog here

What are Dividends?

• Dividends represent a portion of a company’s profits that the company distributes to its shareholders. If you own shares in a company and that company has had a profitable year, you might receive a dividend.
• Read the full blog here

What is Net Profit?

• Net Profit is the amount of money that remains from a business’ revenues after all operating expenses, interest, taxes, and other costs have been subtracted. It is an indicator of a company’s financial performance over a specific period.
• Read the full blog here

What is Gross Profit?

• Gross Profit refers to the total revenue subtracted by the cost of goods sold. These costs include all the expenses directly associated with the production of goods or services your business sells, such as raw materials and labour.
• Read the full blog here

We hope you found our June blogs both informative and engaging. If you have any questions or would like to discuss any of the topics further, please feel free to reach out. Stay tuned for more insights and tips in the coming months.