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What is a Personal Tax Account? - Accountants in Croydon

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HMRC's personal tax account is an online service that allows you to access all of your personal tax information in one location. The personal tax account enables you to manage your tax concerns on your own time, without having to write or phone HMRC. Having fast access to your personal tax account will save you time and energy, allowing you to better manage your tax affairs. It was established in 2015 and has been a huge success, saving countless hours by dealing with everything online at your leisure. In this guide we will learn about the what is a personal tax account . Why should I open a Personal Tax Account right now? Personal tax accounts are a free service provided by the government that uses high-security technology. The major advantage of having your Personal Tax Account up and running is that you can access all of your tax information through one online site. The idea is that having all of your financial information in one location would provide you more overall financial...
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What is VAT Threshold? - Accountants in Croydon

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 The VAT threshold is the amount of yearly turnover necessary for firms to register for value-added tax (VAT). Registering for VAT is a legal necessity for enterprises that surpass this level, and HMRC reviews it on a regular basis. The threshold increased steadily between 2014 and 2017, but has stayed constant since then. You must register for VAT if your company earned more than the VAT threshold in any 12-month period or if your VAT taxable turnover is expected to exceed the VAT registration level within the following 30 days. The 12-month period in question does not have to correspond with the fiscal year. You should examine whether your VAT taxable revenue for any given 12-month period has above the current VAT registration threshold on a regular basis. In this guide we will learn about the VAT threshold . Even if your revenue does not reach the VAT level, you may opt to become VAT-registered on a voluntary basis. You may opt to do so since it provides a variety of advantages,...
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Different Types of Capital Allowance - Accountants in Croydon

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 Capital allowances are a (horribly) complex area of UK tax, yet claiming allowances wherever feasible can help a firm reduce its tax burden significantly. To make matters even more complicated, multiple types of capital allowances are available, each with its own set of criteria, claim limitations, and thresholds. Our Beginners Guide to Capital Allowances begins with the fundamentals, but continue reading to discover more about the many types of capital allowances : Allowance for annual investment Allowances during the first year Super-deduction Discounted rate Allowances should be reduced. What exactly is an annual investment allowance (AIA)? The annual investment allowance (AIA) allows firms to claim tax breaks on assets purchased. You can use it to deduct the entire value of an asset from your profits before taxes. Is there a cap on the amount of yearly investment allowance I may claim? There is, indeed! In most cases, you can claim the AIA up to a maximum of £200,000 every yea...
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Do You Pay VAT on Ebay Fees? - Accountants in Croydon

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 If you are an eBay seller located in the United Kingdom and you are looking for a definitive answer as to whether or not you are required to pay VAT on your eBay fees , then you have arrived at the correct location... Because we are not qualified to provide tax advice, our recommendations and suggestions about the application of tax laws should not be taken in that context. For the purpose of maintaining their tax compliance, we strongly advise our users to consult with licenced accountants. Which costs on eBay are subject to a 20% VAT? There is a wide variety of each kind of cost that eBay charges. If you are a business that is already established in the UK, you are required to pay VAT on most of them (but not all of them). If you make use of eBay Managed Payments, then you are responsible for the following fees: Fees for listing; the VAT rate is 20% After you have utilised your monthly allotment of 1,000 free listings (or more if you have an eBay Shop), the cost of creating a ne...
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Debits and Credits Definition - Accountants in Croydon

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 Business transactions are events that have a monetary impact on an organization's financial statements. We record numbers in two accounts, with the debit column on the left and the credit column on the right, when accounting for these transactions. Debits A debit is an accounting entry that either increases or decreases the value of an asset or expense account. In an accounting entry, it is to the left. Credits A credit is an accounting entry that either increases or decreases the value of a liability or equity account. In an accounting entry, it is to the right. Use of Debit and Credit Cards When an accounting transaction is made, at least two accounts are always impacted, with a debit entry made against one account and a credit entry made against the other. There is no maximum number of accounts that can be involved in a transaction, but the minimum is two. The totals of any transaction's debits and credits must always equal each other, so an accounting transaction is alway...
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Cash Basis for Landlords Explained - Accountants in Croydon

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 HMRC's making tax digital' (MTD) strategy aims to transform the UK into one of the most technologically advanced tax administrations in the world. Businesses and landlords will be required to keep digital records and provide quarterly digital updates to HMRC, according to the proposals. To make this a reality, various other simplifications and initiatives are being implemented, including the possibility of certain landlords shifting to cash basis accounting. Following a consultation, HMRC announced that the cash basis will be extended to unincorporated property businesses with a maximum rental income of £150,000 per property business. Background HMRC issued six consultation documents in August 2016. Each document concentrated on a different aspect of the MTD strategy. One of the documents was titled 'Simplified cash basis for landlords .' The document outlined proposals for extending cash basis accounting to unincorporated property businesses. Comments on the proposals...
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