News & Blog

Student Loans

If you have a student loan you must inform your employer or your Accountants if you are self employed or a director of your own company. If you earn over £364 per week on plan 1 (loan taken before 2012) or £494 per week on plan 2 (loan taken 2012 onwards) then you must pay 9% of your income above this threshold towards your loan repayments. The student loan is written off when you either reach age 60 or [...]

Stamp duty

Stamp duty is the tax paid by the purchaser when buying a property, at the time of purchase. Currently for properties purchased up to £125,000 the rate is 0%, from £125,000-£250,000 2%, £250,000-£925,000 5%, £925,000-£1.5million 10% and above this at 12%. There is a discount for first time buyers where they pay 0% up to £300,000 and then only 5% from £300,000-£500,000.


Entertainment is not allowable for VAT purposes. However, some entertaining maybe claimed for tax purposes. In general, as a rule it is not allowed, however, according to HMRC guidelines if it is secondary to a meeting of more than one client it is, so be careful when claiming. Also do not over claim for reasonable entertaining expenses as there is even more chance they will be disallowed.  

Losses and Tax relief

Losses and Tax relief. Remember that you can offset trade losses against any other income, including rentals, in the same tax year to reduce your tax liability. You can also carry forward any unused losses to offset future profits in the same trade. However, you cannot offset rental losses against trade profits, you can only carry forward these rental losses against future rental profits.

IR 35

IR 35 – be careful. HMRC are again checking if you should be employed by your contractor or not. It is obviously better tax wise for both you and your contractor to be self employed, but is it correct? You should be asking yourself some questions, do I do all my work for one person? If no then you should be fine. Is my work guaranteed ? Again if no then you should be fine. Do I take a [...]

Self employed Versus Limited company

We are asked many times, with tax free dividends now at just £2,000 whether it is best to be self employed or Limited. Now the upper rate of tax starts at £50,000 we will use this as an example. If you earn £50,000 of self employed profits you will pay £11999.74 in personal tax and NI. If you earn £12,500 PAYE and take £37,500 of dividends through your Limited company then you will pay £3705 in personal tax + £7,125 in Corporation [...]