Bright Tax Limited

𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘀𝗲𝗹𝗳-𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗱 𝗲𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀, 𝗼𝗻𝗹𝗶𝗻𝗲 𝘀𝗲𝗹𝗹𝗲𝗿𝘀 & 𝗳𝗿𝗲𝗲𝗹𝗮𝗻𝗰𝗲𝗿𝘀: 𝗥𝗲𝗺𝗶𝗻𝗱𝗲𝗿 𝗼𝗳 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝘁𝗼 𝘁𝗮𝘅 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗝𝗮𝗻𝘂𝗮𝗿𝘆! If you’re running your business through online platforms like Etsy, Amazon, or eBay, you may have heard about the changes introduced in January 2024. And if you haven’t, it’s time to pay attention, because these changes could affect you. By 31st of January 2025, all online selling platforms in the UK will be required to report to HMRC the details of sellers who have sold 30 or more items or made over £1,700 in income in year 2024 (counting from January till December). That means HMRC will have a clear picture of your earnings, whether you’re selling handmade products on Etsy, reselling items on eBay, or running a small business on Amazon. 𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝗬𝗼𝘂? As a self-employed individual, company selling through online platforms or a freelancer, it’s more important than ever to get your tax affairs in order. With this new reporting system, HMRC will automatically receive information about your sales activity, and you will need to ensure that you are compliant with UK tax laws, reporting your income correctly, and paying the necessary taxes. But don’t worry—you’re not alone. At Bright Tax, we specialise in guiding businesses just like yours through tax filing and helping you navigate the ins and outs of online selling tax rules. Our team of experts can ensure you understand the reporting requirements and maximise your tax-saving opportunities. 𝗛𝗼𝘄 𝗰𝗮𝗻 𝘆𝗼𝘂 𝗽𝗿𝗲𝗽𝗮𝗿𝗲? *𝗞𝗻𝗼𝘄 𝗬𝗼𝘂𝗿 𝗻𝘂𝗺𝗯𝗲𝗿𝘀: Make sure your sales data is accurate and up to date. This includes tracking the number of items sold and the income generated from your online sales. *𝗚𝗲𝘁 𝘁𝗮𝘅-𝗿𝗲𝗮𝗱𝘆: Understanding VAT, self-assessment, and how to claim allowable expenses is crucial to avoid surprises come tax season. *𝗦𝘁𝗮𝘆 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝘁: Don’t let the new reporting rules catch you off guard. Our team can assist you with all the necessary paperwork, ensuring you’re fully compliant with HMRC requirements. 𝗛𝗼𝘄 𝗰𝗮𝗻 𝘄𝗲 𝗵𝗲𝗹𝗽 𝗬𝗼𝘂? At Bright Tax, we specialise in self-employed tax planning and support for businesses selling through Etsy, Amazon, eBay or other marketplace platforms. We can help you understand how these changes will impact your business and guide you in the right direction for managing your taxes and staying compliant with UK laws. 📞 𝗜𝗳 𝘆𝗼𝘂 𝗿𝗲𝗾𝘂𝗶𝗿𝗲 𝗮𝗻𝘆 𝗰𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗶𝘀 𝘁𝗼𝗽𝗶𝗰, 𝗿𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼 𝘂𝘀 𝘁𝗼𝗱𝗮𝘆! Together, we can help you stay compliant and grow your online business confidently! #SelfEmployed #OnlineSellers #EtsySellers #AmazonSellers #eBaySellers #Freelancers #OnlineBusiness #SmallBusinessSupport #TaxTips #BrightTax

𝗨𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝘀𝗲𝗰𝗿𝗲𝘁𝘀 𝗼𝗳 𝗿𝗲𝗻𝘁𝗮𝗹 𝗶𝗻𝗰𝗼𝗺𝗲 𝘁𝗮𝘅 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞! Hey there, landlords and property enthusiast! Are you feeling lost in the complicated world of rental income tax? Fear not! Our latest article is your ultimate guide through this tax maze, designed to bring clarity to your rental income journey. From understanding what rental income really means to discovering who needs to pay and how taxes are calculated, we’ve got the insights you need. And that’s not all! We’ll also uncover valuable allowances and reliefs to help ease your tax burden. Curious about how to navigate this territory without getting lost? Click the link to read the full article and arm yourself with the knowledge to keep your finances on track! Plus, we want to hear from you—share your thoughts or questions in the comments! Let’s tackle rental income tax together!

Don’t let the upcoming tax deadline stress you out! This article adds some fun to the chaos of tax season and explains why many self-employed people have trouble filing on time. You’ll get helpful tips to stay calm and avoid late fees. If you’re feeling overwhelmed, read the full article for some laughs and easy ways to handle tax season!

Are you trying to decide between running a limited company or becoming self-employed? This choice isn’t just about business; it can change your whole life. Let’s uncover the key details of each option, and find out how to pick the best path for your financial success and personal security. Are you prepared for a decision that could shape your future? Keep reading to learn about the advantages and risks of each choice! We’d love to hear from you! Share your thoughts, questions, or experiences in the comments below. Your insights might just guide someone else on their journey.. After all, in the realm of entrepreneurship, we are all in this together.

Today, we would like to share some insights on the recent changes introduced by Companies House in the UK, stemming from the Economic Crime and Corporate Transparency Act 2023. We encourage all directors to take a moment to familiarize themselves with these updates, as understanding these new obligations is essential for maintaining compliance and supporting the success of your business. Staying informed can also help to avoid potential challenges down the road. We hope you find this information helpful and valuable!

 🚨 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗧𝗮𝘅 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞 🚨   As a business owner, comprehending your tax responsibilities is essential for the success and sustainability of your enterprise. Below is a concise overview of the key tax obligations that limited companies in the UK should be aware of: 𝟭. 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗧𝗮𝘅: Limited companies are subject to corporation tax on their profits. The current Corporation Tax rates vary based on the profit levels of the company: > A small profits rate of 19% applies to companies with profits of £50,000 or less. > The main rate of Corporation Tax for non-ring-fenced profits is 25% for profits exceeding £250,000. > Companies with profits between £50,000 and £250,000 will have their tax calculated at the main rate, with a marginal relief that enables a gradual increase in the effective Corporation Tax rate.  > Deadlines: If your profits are below £1.5 million, any Corporation Tax due must be paid by nine months and one day following the end of your accounting period. The deadline for submitting your Corporation Tax return is set at 12 months after the conclusion of the relevant accounting period. 𝟮. 𝗩𝗮𝗹𝘂𝗲 𝗔𝗱𝗱𝗲𝗱 𝗧𝗮𝘅 (𝗩𝗔𝗧): Companies with a taxable turnover exceeding £90,000 are required to register for VAT. Voluntary registration is also an option for businesses with turnover below this threshold if deemed beneficial. Typically, VAT returns are submitted quarterly, with payments due by the 7th of the month following the end of each period. 𝟯. 𝗣𝗔𝗬𝗘 𝗮𝗻𝗱 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀: If you employ staff, it is necessary to register for Pay As You Earn (PAYE). This system encompasses PAYE income tax and National Insurance contributions, which must be reported and paid to HM Revenue and Customs (HMRC) regularly. 𝟰. 𝗔𝗻𝗻𝘂𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀: All limited companies are mandated to prepare annual accounts, which must be filed with Companies House in accordance with regulations. 𝟱. 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗥𝗮𝘁𝗲𝘀: Businesses operating from premises may be liable for business rates, which are determined by local councils based on the value of the property. It is advisable to consult your local authority for specific details. 𝟲. 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀 𝗧𝗮𝘅: As a shareholder, you have the option to receive dividends from your company's net profits. These dividends may be subject to tax based on your total income for the tax year. Be mindful of the dividend allowance, which for the tax year 2024/25 has been reduced to £500. The tax rates on dividends are as follows: - Basic rate (20%): 8.75% - Higher rate (40%): 33.75% - Additional rate (45%): 39.35% Let us know in the comments below what topic you would like us to cover! Feel free to follow our page to stay in the loop. #LimitedCompany #UKBusiness #SmallBusinesses #AccountantLuton #AccountancyServicesLuton #TaxObligations

📊 𝗕𝗮𝘀𝗶𝗰𝘀 𝗼𝗳 𝗥𝘂𝗻𝗻𝗶𝗻𝗴 𝗮 𝗟𝘁𝗱 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗻𝗶𝘁𝗲𝗱 𝗞𝗶𝗻𝗴𝗱𝗼𝗺 📊 We have previously discussed the basic structures of companies in the UK. Today, we want to focus on limited companies, which are a very popular form of business among our clients. As you may know, managing accounting is a key element of success for any Ltd company in the UK. Well-organized accounting not only facilitates daily operations but also helps avoid unpleasant surprises related to tax regulations. Here are some essential pieces of information worth knowing: 𝟙. ℂ𝕠𝕞𝕡𝕒𝕟𝕪 ℝ𝕖𝕘𝕚𝕤𝕥𝕣𝕒𝕥𝕚𝕠𝕟: Ensure that your company is registered with Companies House to legally conduct business. 𝟚. 𝕊𝕙𝕒𝕣𝕖𝕙𝕠𝕝𝕕𝕖𝕣𝕤 𝕒𝕟𝕕 𝔻𝕚𝕣𝕖𝕔𝕥𝕠𝕣𝕤: Every Ltd company must have at least one director and one shareholder. 𝟛. 𝕃𝕚𝕒𝕓𝕚𝕝𝕚𝕥𝕪: Company owners (shareholders) have limited liability, meaning they are generally not personally responsible for the company's debts. 𝟜. 𝔸𝕔𝕔𝕠𝕦𝕟𝕥𝕚𝕟𝕘: Maintaining accurate accounting is essential. Ltd companies must submit annual financial statements and tax returns to both Companies House and HMRC. 𝟝. ℝ𝕖𝕡𝕠𝕣𝕥𝕚𝕟𝕘 ℂ𝕙𝕒𝕟𝕘𝕖𝕤: Any changes in management, registered office address, or capital structure must be reported to Companies House in a timely manner. 𝟞. 𝔹𝕖𝕟𝕖𝕗𝕚𝕥𝕤 𝕠𝕗 𝕆𝕨𝕟𝕚𝕟𝕘 𝕒𝕟 𝕃𝕥𝕕 ℂ𝕠𝕞𝕡𝕒𝕟𝕪: Easier access to funding, a professional image, and protection of personal assets are just a few of the many advantages of conducting business as an Ltd. 𝟟. 𝕋𝕒𝕏 𝕊𝕪𝕤𝕥𝕖𝕞: Every Ltd company must understand its basic tax obligations, such as Corporation Tax, VAT PAYE, and CIS. We will discuss this in more details in our next posts. #LimitedCompanyBasics #BusinessHelp #SmallBusiness   #AccountingHelp #AccountantLuton

🚨𝗔𝘂𝘁𝘂𝗺𝗻 𝗕𝘂𝗱𝗴𝗲𝘁 𝟮𝟬𝟮𝟰: 𝗞𝗲𝘆 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗖𝗵𝗮𝗻𝗴𝗲𝘀🚨 In her recent Budget announcement, Chancellor Rachel Reeves outlined significant taxation changes aimed at rebuilding the UK economy while protecting the living standards of working people. Here are the key highlights: 𝟭. 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: There will be no increases in income tax, employee national insurance, or VAT for working individuals. Additionally, the thresholds for income tax and national insurance contributions will be unfrozen starting in 2028-29, preventing more workers from being pushed into higher tax brackets. 𝟮. 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗟𝗶𝘃𝗶𝗻𝗴 𝗪𝗮𝗴𝗲: The National Living Wage will rise from £11.44 to £12.21 per hour in April 2025, benefiting approximately 3 million workers. 𝟯. 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: The rate for employer National Insurance will increase from 13.8% to 15% starting April 2025, with the Secondary Threshold dropping from £9,100 to £5,000. However, the Employment Allowance will increase to £10,500, allowing small businesses to employ up to four full-time National Living Wage workers without incurring employer National Insurance costs. 𝟰. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 (𝗖𝗚𝗧): The lower rate of CGT rises from 10% to 18%, and the higher rate will increase from 20% to 24%. These changes aim to align CGT rates with those for residential property. 𝟱. 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 𝗧𝗮𝘅: The thresholds for inheritance tax will remain fixed until April 2030, with reforms set to apply to the wealthiest estates. From April 2027, inherited pension pots will also be subject to inheritance tax. 𝟲. 𝗦𝘁𝗮𝗺𝗽 𝗗𝘂𝘁𝘆: For those purchasing additional residential properties in England and Northern Ireland, the Stamp Duty Land Tax (SDLT) has been raised from 3% to 5%. 𝟳. 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗥𝗮𝘁𝗲𝘀 𝗥𝗲𝗳𝗼𝗿𝗺: Starting in 2026-27, lower tax rates for retail, hospitality, and leisure properties will be introduced, funded by a higher multiplier for more valuable properties. The small business multiplier will be frozen next year. 𝟴. 𝗡𝗲𝘄 𝗗𝘂𝘁𝗶𝗲𝘀: A new vaping duty will be introduced, and the Soft Drinks Industry Levy will increase to account for inflation. Additionally, tobacco duties will rise significantly. 𝟵. 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 𝗩𝗔𝗧: A 20% VAT will be applied to private school education and boarding services starting January 2025, alongside the removal of business rates relief for private schools. 𝟭𝟬. 𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗧𝗮𝘅 𝗚𝗮𝗽: The government aims to close the tax gap, targeting an additional £6.5 billion per year through improved compliance and digitization of HMRC services. 𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝗰𝗵𝗮𝗻𝗴𝗲 𝘁𝗵𝗮𝘁 𝗮𝗳𝗳𝗲𝗰𝘁𝘀 𝘆𝗼𝘂? Feel free to share your views below. #BusinessUK #AutumnBudget2024 #TaxationChanges #NationalLivingWage #FiscalPolicy #EconomicGrowth #BrightTax

Filing your tax return in the UK can be daunting, especially with the countless of rules and regulations. With the deadline approaching, it’s crucial to ensure your submission is accurate to avoid penalties. What are the most common mistakes when filling out your tax return in the UK? We’ve outlined them to make it easy for you! 𝟭. 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀: Many people overlook the January 31st deadline for submitting their self-assessment tax return. Mark your calendar and set reminders to avoid penalties! 𝟮. 𝗜𝗻𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: Submitting incorrect names, addresses, or National Insurance numbers can lead to delays. Always double-check your details before submitting! 𝟯. 𝗢𝘃𝗲𝗿𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗜𝗻𝗰𝗼𝗺𝗲 𝗦𝗼𝘂𝗿𝗰𝗲𝘀: What income must be declared? Failure to report all income, such as freelance earnings, savings, or rental income, can result in fines. Keep meticulous records of all income sources to ensure compliance. 𝟰. 𝗖𝗹𝗮𝗶𝗺𝗶𝗻𝗴 𝗜𝗻𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝗗𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻𝘀: How can I maximize my deductions? Many taxpayers miss out on allowable expense claims. Familiarize yourself with deductible costs relevant to your profession, and don’t hesitate to consult a professional! 𝟱. 𝗡𝗼𝘁 𝗞𝗲𝗲𝗽𝗶𝗻𝗴 𝗥𝗲𝗰𝗼𝗿𝗱𝘀: Why is record-keeping important? Poor record-keeping can hinder your ability to provide evidence if questioned by HMRC. Maintain organized files of all receipts and statements throughout the year. 𝟲. 𝗜𝗴𝗻𝗼𝗿𝗶𝗻𝗴 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗧𝗮𝘅 𝗟𝗮𝘄𝘀: Tax laws can change, so it’s crucial to stay informed. Regular updates from HMRC or an accountant can help you navigate any changes seamlessly. These are the 6 most common mistakes based on our experience. What would you add to this list? #TaxReturnsUK #SelfAssessment #AccountingTips #TaxReturnMistakes #BrightTax #AccountantLuton

💰 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗧𝗮𝘅 𝗼𝗻 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 💰 That's correct! It's important to know how the rules regarding interest tax work in order to effectively manage your savings. Here are the details that will help you better understand these issues: 1.𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗔𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲: Every taxpayer is entitled to a personal allowance, which is the amount of income you can earn without having to pay tax. This is crucial because it affects the total amount you can earn without incurring tax. 2.𝗕𝗮𝘀𝗶𝗰 𝗥𝗮𝘁𝗲 𝗳𝗼𝗿 𝗦𝗮𝘃𝗶𝗻𝗴𝘀: Individuals with a total income below £17,570 can earn up to £5,000 in interest without paying tax. However, it's important to remember that for every additional pound of income over the personal allowance (currently £12,570), the limit is reduced by £1. 3. 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝗔𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲: Depending on your tax rate, the tax-free interest limits are as follows: o   Basic Rate (20%): £1,000 tax-free o   Higher Rate (40%): £500 tax-free o   Additional Rate (45%): £0 tax-free 4. ISAs: It is definitely worth considering ISA (Individual Savings Account) savings accounts, as all savings accumulated in these accounts are tax-free and do not affect the above limits. 𝗔𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: >Interest Income and Tax Bands: It's essential to consider how your interest income fits into the overall context of your income. If your total income pushes you into a higher tax band, it could significantly affect your tax liabilities. >Changes in Legislation: Tax laws can change, so it's prudent to keep an eye on government announcements and budget updates regarding taxation. >Financial Advice: Consulting a financial advisor can provide personalized guidance based on your individual financial situation, helping you to navigate tax-efficient savings strategies. Managing your savings and understanding how taxes work is essential for maximizing your returns. Make sure you stay updated with current regulations, and if in doubt, consult a financial advisor. Be a smart investor! 𝗙𝗼𝗹𝗹𝗼𝘄 𝗼𝘂𝗿 𝗽𝗮𝗴𝗲 𝘁𝗼 𝘀𝘁𝗮𝘆 𝘂𝗽 𝘁𝗼 𝗱𝗮𝘁𝗲! Visit our website to get more details! 🌐 𝘄𝘄𝘄.𝗯𝗿𝗶𝗴𝗵𝘁-𝘁𝗮𝘅.𝗰𝗼.𝘂𝗸