To successfully grow your business, you need to not only know your current business position but also where you want to be in three or five years’ time.
Category Archives: Business Blog
Implications for businesses amid soaring pension tax relief
Recent statistics reveal a significant increase in the amount of annual pension tax relief, exceeding £50 billion for the first time.
How does your locus of control influence entrepreneurial success?
Running a small business involves a lot more than juggling logistics. Knowing how to tackle and overcome challenges is an essential aspect of entrepreneurship.
How to use the new HMRC app for your tax returns
For small businesses navigating the Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) initiative, tax returns can be complex.Continue reading
Becoming a freelancer – setting up a limited company
When making the decision to become a freelancer, you have two options. You can either set up as a sole trader or start a limited company.
Everything you should know before becoming a sole trader
Starting a freelance career marks a significant transition from traditional employment but it’s a decision that many are nervous to make.
How can the Marriage Allowance save you money?
There are many financial and legal benefits to being married or in a civil partnership, but one of the most overlooked reasons is the potential for tax relief.
This is because, thanks to the Marriage Allowance, where one partner earns below the tax threshold, they can transfer a portion of their personal allowance to the other partner, reducing the amount of tax they need to pay.
Am I eligible?
The Marriage Allowance relies on one spouse earning below their Personal Allowance of £12,570 per year. This can be through not working, having a low-paying or part-time job, or being retired.
The other partner must be paying the basic tax rate to receive the allowance, meaning their annual income must be between £12,571 and £50,270 per annum.
If this is the case, the lower-earning partner can transfer up to £1,260 of their personal allowance to their higher-earning partner.
How does it work?
By transferring part of your personal allowance to your partner, you increase their personal allowance up to £13,830. This reduces the portion of their income that they are liable to be taxed on, saving them up to £252 per year.
It is important to bear in mind that this transfer reduces the personal allowance of the lower-earning partner by the same amount, meaning that if they earn over £11,310, they are liable to pay tax.
Despite this, it is often still worth the transfer, as the lower-earning partner will still be paying a lower amount of tax, and it will contribute to an overall saving for both partners.
How do I get it?
You can apply for Marriage Allowance on the Government website if you fit all the criteria mentioned above.
If you or your partner were born before 6 April 1965, you may benefit more by applying for Married Couple’s Allowance instead.
It is also possible to backdate the claim to include any tax year from 5 April 2019, meaning that you and your partner can get further reductions to your tax bill.
If you are unsure whether the Marriage Allowance will benefit you and your partner, get in touch with our experts today for help and advice.
How management accounts can help your business
Management accounts are vital in keeping on top of your business’s performance. But what are they, and how do they work?
Tax reliefs business owners can claim amidst record Corporation Tax payments
HM Revenue and Customs (HMRC) recently reported a record-breaking increase in Corporation Tax receipts for the 2022/23 tax year.
Five strategies for leveraging financial forecasting
In the dynamic world of business, financial foresight is not just a luxury; it’s an essential ingredient for success.