News,May 2018

is a tattoo artist self-employed

Is a Tattoo Artist Self-Employed in the UK?

21/03/2024Personal Tax , self-employed accountant

Wondering is a tattoo artist self-employed? The topic of whether a tattoo artist can be self-employed is an intriguing one. As it delves into the world of entrepreneurship within the creative field of tattooing. Tattoo artists have the potential to become self-employed, offering their skills and services independently from a studio or tattoo parlour. This form of employment allows artists to enjoy greater creative freedom. Establish their unique brand, and have better control over their careers. However, becoming a self-employed tattoo artist requires a specific set of skills, knowledge, and business acumen. This is to ensure success in this competitive industry. This discussion aims to explore the qualifications required, and the steps to establish a successful self-employed career in the UK.   Reach out to our smart and clever-minded guys to get an understanding of the tax set of rules in the UK queries answered quickly. We will help to understand your queries instantly.   What are the Role and Responsibilities of a Tattoo Artist? The role and responsibilities of a tattoo artist in the UK encompass a range of creative, technical, and professional skills. Tattoo artists are responsible for creating unique and intricate designs, ensuring the safety and satisfaction of their clients, and complying with local regulations and health standards. First and foremost, tattoo artists in the UK must possess a strong sense of creativity and artistic vision. They design custom tattoos for clients. Taking into account individual preferences, desired styles, and placement on the body. This requires excellent drawing skills, an understanding of various tattoo styles, and the ability to adapt and modify designs as needed. In addition to creative skills, tattoo artists must have a thorough understanding of the technical aspects of their craft. This includes knowledge of tattoo machines, inks, needles, and other materials, as well as proper sanitation and sterilisation techniques. They must be able to operate tattoo machines safely and efficiently, ensuring a high-quality finish and minimising any discomfort for the client. Tattoo artists in the UK are also responsible for maintaining a safe and hygienic working environment. This includes adhering to local regulations and health standards, using proper disposable materials, and regularly cleaning and sterilising equipment. They must also ensure that clients understand the potential risks and aftercare requirements associated with getting a tattoo.   What are the Qualifying Criteria to Become One? To become a tattoo artist in the UK, individuals must meet a set of qualifying criteria that demonstrate their artistic skills, and knowledge of tattooing techniques. Have an understanding of health and safety regulations. These criteria ensure that tattoo artists are capable of providing high-quality work. While maintaining a safe and hygienic environment for clients.   Artistic Skills Tattoo artists in the UK must possess a strong foundation in art and design. This includes knowledge of colour theory, composition, and various tattoo styles. Prospective tattoo artists often begin by completing an art or design-related qualification. Such as a bachelor’s degree, diploma, or art school program.   Technical Proficiency Tattoo artists must be proficient in the technical aspects of tattooing. This requires hands-on experience and training, which can be acquired through apprenticeships, workshops, or courses. This is offered by reputable tattoo schools.   Health and Safety knowledge Tattoo artists must be familiar with health and safety regulations specific to the UK tattoo industry. This includes understanding the risks associated with tattooing, proper sterilisation techniques, and cross-contamination prevention. Many tattoo artists obtain certification in first aid and CPR to ensure they can respond effectively to emergencies.   Business Acumen To succeed as a tattoo artist, individuals must possess basic business skills, such as marketing, client communication, and time management. This enables them to effectively promote their services, build a loyal clientele, and manage their time and resources efficiently.   Portfolio Prospective tattoo artists must compile a strong portfolio showcasing their artistic skills and range of tattoo styles. This serves as evidence of their experience and capabilities and is often a key factor in securing employment or establishing a successful freelance practice.   Licensing and Registration In the UK, tattoo artists must obtain a license or register with their local authority to operate legally. This typically involves completing an application process. Providing documentation of their qualifications, and adhering to specific regulations. By meeting these qualifying criteria, individuals can establish themselves as skilled and knowledgeable tattoo artists capable of providing high-quality work while ensuring a safe and hygienic environment for their clients.   Is a Tattoo Artist Self-Employed? Tattoo artists in the UK have the option to pursue a career as self-employed professionals. Offering their services to clients through their studios or by working as freelancers. This career path provides flexibility and creative freedom. It also requires a significant amount of dedication, organisation, and business acumen.   Establishing a Studio Some self-employed tattoo artists open their studios. Which allows them to set their hours, manage their clientele, and control the creative environment. To establish a successful studio, artists must invest in high-quality equipment, furnishings, and supplies, as well as market their services effectively to attract clients.   Freelance Work Alternatively, tattoo artists can choose to work as freelancers, offering their services in various studios or at tattoo conventions. Freelancing allows artists to collaborate with other professionals, explore different styles, and build a diverse client base. However, freelancers must be prepared to juggle multiple projects and maintain a consistent flow of work to sustain their income.   Financial Management As self-employed professionals, tattoo artists are responsible for managing their finances. Including tracking income, expenses, and taxes. This may involve setting aside funds for tax payments, investing in retirement savings, and budgeting for equipment upgrades and other business expenses.   Marketing and Networking To succeed as a self-employed tattoo artist, individuals must actively promote their services and establish a strong professional network. This can involve creating an online presence through social media. Participating in tattoo conventions, and collaborating with other artists or businesses.   Time Management Balancing client appointments, administrative tasks, and personal time can …

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claim pension credit

How to Claim Pension Credit?

10/08/2023Pension , Personal Tax

If you are seeking facts relevant to pension credit benefits in the UK, this is the right page for you. As this guide will hold a discussion about how to claim Pension Credit in the UK. How to apply, how you can contact the Pension Service and they’ll guide you through the process. Moreover, you can either call the Pension Credit claim line or fill out a paper application form. The right kind of information about your income and savings will be required too. By claiming Pension Credit, you may also be eligible for additional benefits like free prescriptions, this will help with many other factors. To get personalised advice, it’s best to contact the relevant authorities. We will cater for the basic facts as well. Let us begin with what exactly is pension credit and how it works in the UK.   Reach out to one of our professionals to get to know about claiming pension credit. Get in touch and you will be provided instant professional help!   What is Pension Credit? Pension Credit is a benefit in the UK designed to provide financial support to individuals who have reached the State Pension age and have a low income. Guarantee Credit and Savings Credit are two integral parts. Guarantee Credit tops up your weekly income if it falls below a certain threshold, ensuring you have a minimum amount to cover your basic needs. The saved money during the retirement period is known to be the saving credit in simple words. Pension Credit can help older individuals have a more secure and comfortable retirement by providing them with additional financial assistance. It’s important to note that eligibility criteria and payment amounts may vary, so it’s advisable to seek advice from the relevant authorities or organisations to understand the specific details and requirements for Pension Credit in the UK.   How Much Pension Credit Could I Get? To find out the specific amount of Pension Credit you may be entitled to in the UK, it’s always recommended to reach out to the appropriate authorities to find out. Eligibility criteria and payment calculations can vary, so it’s best to seek personalized advice to get an accurate estimate of your potential Pension Credit amount. Normally for single people, the amount tops up to £201.05 per week. In the case of having a partner, the joint amount for a week will be £306.85.   Am I Eligible to Claim Pension Credit? To be eligible to claim Pension Credit in the UK, you need to have reached the State Pension age and have a low income. The income thresholds for Pension Credit vary depending on your circumstances. In the case of single people, the income is normally below a limit. For couples, the combined income must fall below a separate threshold. Additionally, your savings and investments are taken into account. The specific eligibility criteria and payment calculations can be complex, so it’s best to contact the Department for Work and Pensions or visit their website for detailed information tailored to your situation. They can provide you with accurate guidance on whether you qualify for Pension Credit in the UK.   How Do I Claim Pension Credit? To claim Pension Credit in the UK, you can start by contacting the Pension Service, which is part of the Department for Work and Pensions. Necessary forms will be given and the process of application will also be guided in this regard. You can apply over the phone by calling the Pension Credit claim line or by filling out a paper application form and sending it by post. The application will require information about your income, savings, and personal details. It’s important to provide accurate and up-to-date information to ensure smooth processing of your claim. If you need assistance or have any questions, the Pension Service will be able to provide further guidance.   Can I Get Any Other Help by Claiming Pension Credit? By claiming Pension Credit in the UK, you may be eligible for additional support and benefits. For instance, if you qualify for Pension Credit, you may also receive other benefits such as free NHS prescriptions, dental treatment, and eye tests. You may also be entitled to help with rent and council tax through the Housing Benefit and Council Tax Reduction schemes. Additionally, claiming Pension Credit can automatically grant you eligibility for the Warm Home Discount, which provides a reduction on your energy bills during the winter months.   What if the Circumstances Change? If your circumstances change after you’ve been approved for Pension Credit, it could potentially affect your eligibility and the amount of support you receive. It’s important to promptly inform the Pension Service about any changes in your income, savings, living arrangements, or other relevant factors. Keeping them updated ensures that you continue to receive the appropriate level of support based on your current circumstances.   How to Report the Change in Circumstances? Just ensure that you can easily get in touch with the Pension Service to inform them about the change in circumstances. Just give them a call on the Pension Credit claim line and let them know about the changes. They’ll guide you through the process and may ask for some documents or information to support your updated circumstances. It’s crucial to report any changes so that your Pension Credit can be adjusted accordingly and you receive the appropriate level of support.   The Bottom Line The bottom line is that by claiming Pension Credit in the UK, you can receive financial support if you have a low income and have reached the State Pension age. It’s important to contact the Pension Service to apply and get accurate information about eligibility criteria, income thresholds, and the application process. You can also be in a good position to be eligible for several other benefits. This might include the possible benefits like the Warm Home Discount, council tax as well as help with the rent problems. It’s always best to seek personalised …

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cancel marriage allowance

How to Cancel Marriage Tax Allowance in the UK?

23/06/2023Finance , Insurance , Personal Tax , tax

If you are a married couple or living in a civil partnership, a marriage tax allowance is something you must be aware of. This provides you with the opportunity to claim tax relief as well. However, this is only possible if one of the partners or spouses is earning less than the amount of personal allowance in the UK. People tend to inquire about how to cancel marriage tax allowance as well. For this cause, this comprehensive guide is based n the discussion related to everything that you need to know about what is marriage tax allowance, how it works in the UK, what is the criteria to qualify, how can you apply to get a marriage allowance, and how much you will get.   Talk to one of our intelligent and clever professionals to get your further queries about the marriage tax allowance. We will ensure to come up with the best possible solution.   What is a Marriage Tax Allowance? Marriage tax allowance is a tax break in the UK that allows married couples or civil partners to transfer a portion of their personal allowance to their partner, which can reduce their tax bill. The marriage tax allowance is available to couples where one partner earns less than the personal allowance which is currently £12,570 and the other partner is in the basic rate tax band which is currently £12,571 to £50,270. If eligible, the lower-earning partner can transfer a certain amount of their unused personal allowance to the higher-earning partner, which can reduce their tax bill to a certain extent per year. The allowance is not available to couples where both partners are in higher-rate or additional-rate tax bands.   How Does Marriage Allowance Work? As mentioned earlier that the marriage allowance works by allowing couples to transfer a portion of their personal allowance to their partner, which can reduce their tax bill. If one partner earns less than the personal allowance and the other partner is in the basic rate tax band, the lower-earning partner can transfer the amount that is their unused personal allowance to the higher-earning partner. This can reduce the higher-earning partner’s tax bill by one per year. Couples can apply for marriage allowance online or by phone in the UK.   Who Qualifies for Marriage Allowance? Couples in the UK can qualify for marriage allowance if they are married or in a civil partnership, one partner earns less than the personal allowance, and the other partner is in the basic rate tax band. This is currently £12,571 to £50,270. If you are in a position to qualify and be eligible to get the benefits of the marriage allowance as a couple, you can even avail yourself the option of transferring a certain limit of your allowance to the partner who is the high-earning individual out of the two. This will help to maximise the benefits of the allowance amount.   How to Apply for a Marriage Tax Allowance? You can apply for marriage allowance in the UK online or by phone. To apply online, you will need to have your National Insurance number and your partner’s National Insurance number, if you are married or in a civil partnership. You will also need to provide your bank account details and your partner’s details. To apply by phone, you can call HMRC. Moreover, you will need to have your National Insurance number and your partner’s National Insurance number when you plan to finally make a call. HMRC will then check your eligibility and let you know if you can claim a marriage allowance or not in the current scenario.   How Much is the Marriage Tax Allowance? The amount of the marriage tax allowance in the UK is up to £1,260 for the tax year 2022/2023. This is the amount that a lower-earning partner can transfer to their higher-earning partner’s personal allowance. If eligible, the higher-earning partner can then reduce their tax bill by up to £252 per year. It’s worth noting that the marriage tax allowance can only be claimed if the lower-earning partner has an unused personal allowance that they can transfer to their partner.   Is Marriage Allowance Taxable? No, the marriage allowance is not taxable in the UK. If you are eligible for marriage allowance and you transfer part of your personal allowance to your partner, it will not be counted as income and will not be subject to tax. Similarly, if you receive a marriage allowance from your partner, it will not be counted as income and will not be subject to tax. However, it’s worth noting that the allowance may affect other benefits and tax credits that you receive, so it’s important to check with HMRC if you are unsure or want to know about a specific scenario that you are facing currently.   How Do I Cancel My Marriage Tax Allowance? To cancel your marriage tax allowance in the UK, you will need to contact HMRC. You can call them or write to them at the following address: HM Revenue and Customs – Pay As You Earn PO Box 1970 Liverpool L75 1WX When you contact HMRC, you will need to provide your National Insurance number and your partner’s National Insurance number. You should also explain that you want to cancel your marriage allowance and provide a reason for the cancellation. HMRC will then process your request and let you know if any further action is required.   The Bottom Line Now that you have gathered a fair amount of information regarding how to cancel marriage allowance in the UK, we can bring the discussion towards wrapping up. The marriage allowance brings in the kind of benefits that allows a married couple or civil partners to enjoy an amount to a certain extent without paying any tax on it. However, there must be an understanding of what are the criteria to be qualified. If you meet the required standard, you can get in touch with HMRC …

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real time information

What is RTI (Real Time Information)?

04/01/2023Payroll & PAYE , Pension , Personal Tax

When you are an employer of large or small businesses in the UK, there is a mandatory thing to do for you is to inform HMRC about the details of your employees. For this procedure to be successful for beginners, a basic understanding of real-time information is important to learn. In a nutshell, real-time information is a method of reporting the payroll to HMRC in real-time. The method of real-time information is done through an electronic medium by the employers before they make the payments of wages and salaries to their employees. It has been a mandatory part of the business for employers to inform HMRC about the wages details every month. It has become a must part since 2013. Moreover, if the employer makes any mistakes in the submission or the reporting is not done on time, HMRC will charge a hefty amount of fines and penalties. Normally employers will likely require real-time information-enabled software and a good connection to the internet to complete the procedure. This software and connection are used to do the online PAYE filing. There is free software by HMRC that can be used by employers that have less employee count. However, there is commercial software available that is easy for employers to use if they have a large number of employees. We have got you covered with basic information about real-time information. This involves the discussion of what is real-time information, how to ensure your business is a real-time complaint, and what are the penalties in case you fail to file.   Reach out to our smart and clever-minded guys to get your real-time information queries answered quickly. We will help to decide how to deal with your business problems in the UK.   What is Real-Time Information (RTI)? The main purpose of the real-time information is to report the salaries, wages, national insurance, and PAYE to HMRC. Before the business period of 2013, there used to be a form P35 for the purpose of sending details of employees, how much they are getting paid, and how much is being sent to HMRC in form of national insurance and tax. However, after 2013, the methodology changed and now the employers are required to send these details to HMRC before the wages are transferred every month. Moreover, this is also explained by the name that the employers are required to share the information in the actual meaning of real-time before they transfer the wages. Waiting for the tax year end is not practical for the employers as well as HMRC.   How to Ensure that Your Business is RTI Compliant? Do you want to outsource your payroll to specific service providers or accountants? You must ensure before hiring one, how are they going to make your business real-time information compliant? Some of the businesses use the software payroll already. Get into close details of how your accountant or service provider is getting benefits of using the software for this purpose. On the other hand, some businesses are more inclined towards using desktop software. In this scenario, you normally get a software update every now and then. You will have to install the upgraded version and its benefits.  Moreover, some businesses use cloud-based software, and the service provider will be seamless during this method because of the updated technology.   What is the Relation between the Quality of Payroll and Real-Time Information (RTI)? The main purpose of the payroll data is to ensure that the data you provide during the audits are upgraded and accurate as well. Here comes the helping role of real-time information as it helps to record the data and make records of every salary that you transfer to your employees. This information is further submitted to HMRC also. These records must match for a stand accuracy level. In case the records are not being matched, you are being to help to identify the errors and rectify them on time. Before HMRC finds them out and it becomes trouble for you. You might even end up paying a hefty amount in form of fines and penalties.   Penalties and Fines of HMRC in Case of Submission Failure In case a business fails to submit the report on time, there is no escape from the penalties of HMRC. Whether you made errors while doing the process of filing or you failed to do the submission before you paid wages and salaries to your employees in a tax month, be ready to pay extra in such a month. Many of you must be wondering about the number of penalties. Well, this depends on the size of your business that will decide your penalty. The number of employees hired by an employer will also matter in this regard. £100 for the employee count between 1  to 9. £200 for the employee count between 10  to 49. £300 for the employee count between 50  to 249. £400 for an employee count of 250 or more than this.   The Bottom Line Now that you have gathered a fair amount of information about the use of real-time information, we can bring the discussion towards wrapping up. Real-time information is important for all businesses to inform HMRC before the wages and salaries are transferred to the employees. However, the conditions vary for every business type and size. In case you fail to do the procedure on time, you will have to deal with a hefty amount of fines and penalties charged by HMRC. This can put you in serious circumstances. We hope these few minutes of reading will help you to develop a better understanding about what are the benefits of using real-time information for your small business needs.   Our team of professional members loves to hear out your business problems and find out the possible and suitable solutions quickly for small businesses’ real-time information problems. Call us or email us today.   Disclaimer: The general information provided in this blog about the use of real-time information includes …

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how much income is tax free

How You Can Have Tax-Free Income of £18,570 from Savings?

14/10/2022Personal Tax , tax , Tax Saving Tips , Taxation

How much income is tax-free if you are saving from your income and earning interest on it? Many people in the UK put some savings aside and earn an interest rate on them. However, they have no idea about the tax-free income from savings they can have. Interest in savings is a good source of earning additional income in the UK where the cost of living is increasing every day. However, this income is also not tax-free. You have to pay tax on this income too. Just like income, there’s an income allowance, you can have multiple allowances on your savings as well. If you’re also one of those people who have no idea about allowances and tax-free savings incomes, then we have got you covered. In this blog, we will walk you through different types of tax-free allowances and how you can get the maximum tax-free income from your savings. So, let’s start!   Do you need help in sorting out your tax problems if you are self-employed or working with an organisation? Let’s get instant help from the qualified financial experts at CruseBurke.   Tax on Interest Income Many people in the UK keep their savings either in cash Individual Savings Accounts (ISAs) or in bank accounts. For this, they earn a certain percentage of interest rate on these savings. HMRC offers tax-free allowances to these people who save. Cash Individual Saving Accounts (ISAs) are free from taxes and anyone can have these savings accounts without paying any tax on them. However, other savings are eligible for taxes in the UK after certain allowances. These allowances are as follows: Personal Allowance Starting Rate of Saving Allowance Personal Savings Allowance   Personal Allowance (PA) HMRC covers all the income received from all sources of income. If you have multiple sources of income, including interest income, you will get a personal allowance after calculating the total income from all these sources. You cannot get a separate personal allowance for each source of income. In other words, you will get only one personal allowance on the total income you received in a tax year. You will get a personal allowance of £12,570 after the calculation of the total income. The rest of the income will be taxed according to the tax bracket in which your income falls.   Starting Rate For Savings (SRS) Starting rate for savings is zero percent for the people earning a low level of income. On the other hand, the starting rate for savings is tax-free up to £5,000. It is calculated after the calculation of the personal allowance. For example, if your income is £16,500 and you get a personal allowance of £12,570. The remaining income will be: £16,500 – £12,570 = £3,930 Now, you can calculate the starting rate of savings that is tax free as follows: £5,000 – £3,930 = £1,070 It means you can have £1,070 from the interest income as tax-free. For example, if you are earning £50 as interest on your savings, it is tax-free as it is within the limit of starting rate of savings that is now £1,070.   Personal Savings Allowance (PSA) Personal savings allowance is another tax-free allowance on the income earned from the interest on savings. Personal saving allowance is fixed for different tax bands. For example, Personal Savings Allowance for Basic Rate Tax Payers is £1,000 Personal Savings Allowance for Higher Rate Tax Payers is £500 Personal Savings Allowance for Additional Rate Tax Payers is £0 In other words, if you are earning more than £12,571 and less than £50,000, you are paying 20% income tax on your income. However, you can get a Personal saving allowance of £1,000 on your interest income. On the other hand, you can get £500 Personal Savings Allowance, if you are a higher rate taxpayer. Unfortunately, you cannot get any PSA on your savings if you are a higher rate taxpayer in the UK.   How Much Income is Tax-Free on Savings? If we calculate all of the above allowances for a basic-rate taxpayer, you will get a total tax-free income of £18, 570. For example: Tax-Free Income = Personal Allowance + Starting Rate For Savings + Personal Savings Allowance Tax Free Income =  £12,570 + £5,000 + £1,000 = £18,570   The Bottom Line Finally, we can say that you can earn more tax-free income if you earn interest on your savings. However, you have to pay no tax if you have saved your income as cash ISAs in the UK. Otherwise, you will get a personal income allowance, starting rate of savings and personal savings allowance. For this, you need to work out your total income and calculate the tax-free savings income. You need to keep all records of all your sources of income and tax receipts to claim tax-free income from the HMRC.   Experienced and certified tax advisors at CruseBurke are the experts in UK tax laws and able to deliver the best tax solutions to you. Feel free to contact us now!   Disclaimer: All the information provided in this article on How Much Income is Tax Free, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.

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what is self assessment

Understanding the Basics of Self Assessment!

27/06/2022Personal Tax , Tax Issues , Tax Saving Tips

Are you seeking help to gather information about the basics of what is self-assessment? Every year, this process will help people to pay taxes with HMRC. This system is set up for the use of HMRC to have a fair collection of tax. The usual practice is that the automatic deduction of the tax is done from the amount of pension, savings and wages. In the case of the companies and individuals associated with any kind of business get the income through other ways as well, they are required to report the other ways of earning in the tax returns also. If you’re a business owner regardless of the size of your business, your annual earnings are sent through a report to HMRC. The process of self-assessment tax returns has the part of details that explains all the possible sources that give you earnings. The process is named self-assessment because it involves the list of responsibilities to make calculations of the tax amount that your business owes. Further in this blog, we will explore the introductory explanation of self-assessment along with its required timeframe and what will be the condition if you are not liable to pay any kind of tax.   What is Self Assessment Self assessment refers to a way of bringing the information about your gains and taxable income for the time duration of the tax year. This is done by completing the process of self-assessment tax returns. The major concern of the process is to work out and calculate the amount of money that you owe to pay as tax returns.   Our young and clever team of experts offers the best possible solution to your tax problems. Get in touch today to discuss your queries and enjoy instant help. Call us on 02086868876 or email us today.   Timeframe of Self Assessment Tax Return The requirement is a compulsion if you have received a notice that explains you have to pay the tax returns. The situation can only turn around if HMRC decides to cancel the tax returns, otherwise, you have to go through the process. In the case of an income source that is untaxed, even then you are required to do the process of tax returns. The most common situations in this regard include the following: When your role is of a partner in the business. As a director role of the company, you get the income and the tax is due on that. However, under PAYE the income is not taxed. You have a source to get saving income that comes under untaxed income. HMRC still aims to get the tax amount and even when you are not in the process of tax returns. You are associated with the capital gain tax that is not paid as yet, this makes you bound to pay the tax. If you are getting child benefits, you have to pay the tax in that amount as well. Furthermore, there are several other points added according to the difference in situations in the process of tax returns. There is a tool offered by the government of the UK that helps you to be more clear about your tax return calculations. The question that arises here is how is this possible? The tool puts different questions for you to answer. The collected information from your answers will help to explain the results. This will help you to know if you have to complete the tax returns or not.   What Is The Requirement if I Don’t Have Tax to Pay? People often get confused if they are not bound to pay any taxes, they think that there is no requirement for the tax returns as well. Unless the tax return requirement is not cancelled by HMRC, you have to make the process complete. This does not matter what are your circumstances. In a case where there is no notification sent to you for the process of tax returns, you are liable legally to get HMRC informed that you have to complete the process. This is because you are liable to national insurance, capital gains and income tax. This way you will get the notification of tax returns on time and you can begin the process as well. This process will further keep you protected from any kind of late fines, hidden charges and penalties. Moreover, there are chances to have exceptions that have different obligations. One such example is the income that is taxed fully under PAYE and there are no gains that are chargeable.   The Bottom Line We can bring the discussion towards wrapping up as you have gathered a fair amount of information about the basics of what is self-assessment. We can sum up by saying that you might need a professional to make the right and error-free calculations of your tax returns. This is because the process of tax returns is considered to be quite complex. To ensure seamless processing, these few minutes of reading will help you to do the task well. We further hope this blog has helped to develop a better understanding of self-assessment tax returns.   Learn more about tax returns and self-assessment with our professionals at CruseBurke. We will love to hear about your problems and offer the help you are looking for.   Disclaimer: The information about what is self-assessment provided in this blog is general in nature. It does not intend to disregard any of the professional advice.

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VAT on disbursement

Charging VAT on expenses: Disbursements vs. Recharges

19/05/2022Finance , Marketing , Personal Tax , VAT

We are associated with the business world to carry out our services for the customers. We all have a pretty good idea that when we make an offer to our clients for our services, we will experience some kind of cost to provide the offered services. Whether the process requires you to pay your client a visit or purchase the required software to do the needful, you got to inform your client about the cost. This will be added to the invoice as well. There is a clear need of getting to know recharged expenses and VAT on disbursement here. Especially when you are in a position that makes you VAT registered, you must work with a clear mind as to how to charge VAT and add details in the invoice and what makes disbursement and recharged expenses different from each other. It has been observed that business owners with a lot of experience find it complicated to deal with recharged expenses and disbursements. This blog is created with the intention of letting you know when exactly to charge VAT on the cost and when it is time to treat the payments as a disbursement. Moving on to the discussion further, let’s get to know some basics first.   How to Define Disbursement and Recharge? The term disbursement refers to the buying of the products or services that you intend your customers to receive from you and get the benefits of its usage. The demand depends on the requirement of the client, may it be business-related reading material or website hosting packages. On the other hand, rechargeable expenses are defined as the purchase of something that you need to fulfil the demands of your customers to work. There is no chance that you treat this as a disbursement, this is the rechargeable expense. The examples of travel costs that are planned for business causes as well as the amount of money you spent while you were posting some documents to your customers.   We’ll help you get your VATs sorted out right in time and spare your time to focus on your business valuation. Take time to get in touch with one of our experts today for instant help!   Learn To Invoice Your Client For Rechargeable Expenses You have to deal with the expense while you are carrying out work and getting your regular duties done as a contractor for your client, you do invoice your client for such expenses. The most used and simple suggestion is that you add VAT on the expenses regardless of the fact that you might have paid VAT or not.   Invoice Your Client For VAT on Disbursement As discussed earlier while you are making a purchase of services and products as per the requirement of your customers, you tend to leave VAT calculation from these payments. Technically this depicts that it is the customer who has purchased and gotten the products or services. Your position is as a go in between all the processes. These kinds of transactions are considered disbursements with the purpose of VAT. Moreover, there are a few certain conditions that must be met to ensure that the payment can be treated as a disbursement. See the following listed conditions: The amount of money spent while making the purchase is a part of the billing that you will invoice your customer. The cost of products and services purchasing is an additional amount mentioned in the billing for your customer. This is for the reason of carrying out the work all by yourself. The amount spent on the purchase of goods and services is clearly mentioned with relevant details on the bill. A separate section makes it outlined even clearly. The customer should be knowing that the products or services he has received are not directly from you but are outsourced from a supplier. The client has taken the responsibility to make the payment for the required purchase. The customer has received the product without a hassle and enjoys the benefit of using them. You played the role of an agent and your client had a piece of knowledge about this. You got the permission of your customer before making the payment.    Regardless of what size of business you own, we are just the right choice to deal with your queries. Call us on 02086868876 or email us today.   Learn To Claim VAT The good news is that there is the possibility to claim VAT that you charge your customers on the purchase of products. It does not matter that you treated this amount as a rechargeable expense or disbursement. This is important to know that you will need the invoice to claim back VAT. Furthermore, the customers can possibly be eligible to claim VAT charged by you in case they are VAT registered.   Wrapping Up The discussion of VAT on the disbursement can finally be wrapped up since you have gathered all you need to know for a basic understanding. You may have purchased the products and services on someone else’s behalf but if it is from a supplier who is VAT registered, this makes you ineligible to claim back VAT. The reason is that such transactions are considered as a disbursement by you for VAT purposes. Get the most benefit of the right decision making and ensure your business growth. If you seek professional help to learn further in this regard, this is always a great idea to add to your basic knowledge. We hope these few minutes of reading will help you to make a permanent mark in the market and secure the future of your business.   Disclaimer: The information about VAT (Value Added Tax) on Disbursement provided in this article is general in nature. It does not intend to disregard any professional advice.    

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Bereavement Allowances

All you Need to Know About Bereavement Support Payment

25/04/2022Business , Business Growth Ideas , Dividend Allowance , Finance , Pension , Personal Tax

Are you struggling with the loss of your spouse or civil partner after their demise? In case you are residing somewhere in the UK, here is something with the discussion of Bereavement Allowance that can help. To bring ease to your financial worries that you might struggle without a partner, a bereavement support payment is the best possible solution. Before we delve further into the discussion, a basic understanding of what is bereavement support payment is a must.   We offer our accounting services to self-employed individuals, freelancers, and influencers who are ready to run their businesses as self-employed. Do reach out to learn how we can help you.   Basic Understanding of Bereavement Allowance: After the unfortunate loss of a civil partner, or spouse (husband or wife), an individual becomes eligible for the welfare benefit that is known as bereavement payment allowance. The best part of the bereavement allowance is that it does not depend on the amount of income a person earns or even if one works or not to make both ends meet. In other words, we can simply say that this payment support is not at all means-tested. This support payment was known by the name of widow’s pension. Moreover, the name has changed recently and with that, the way of claiming has also changed. The old system allows claiming for either widow’s parent’s allowance, bereavement payment, or widow’s pension. All of the above-mentioned allowances are now merged into bereavement payment support. The question that might pop up in your minds by now could be how much amount can I get by the support payment. Read the following to learn the details: An amount with a higher rate is £ 3, 500 and the lower rate is £ 2, 500.  In a lump sum if you are the only individual. If you are the only one the instalment of 18 months will be £ 100. It varies again in the case of children and the amount of instalments becomes £350, moreover, this happens when you become eligible for the child benefit.   Are you running a limited company? We have guaranteed satisfying offers to solve your accounting problems. Reach out to one of our professionals instantly to learn more.   What are the Eligibility Criteria: There are certainly some conditions to be eligible for bereavement allowance and here are these listed for you: You are eligible for bereavement support payment in case your spouse or civil partner demised within the last 21 months. The individual must be under the pension age as the same person can’t get two support allowances at the same time. The allowance must be claimed within the time period of three months of the death of one’s civil partner or spouse. You will get the full payment in this way. Otherwise claiming within 21 months will get you fewer monthly payments. The bereavement allowance is eligible if the demise tragedy has happened after 6th April 2017 or on the mentioned date. National insurance is paid for 25 weeks or more in one tax year by your partner. In case you are a prisoner, consider yourself ineligible. You must be a resident in the UK or in a country that allows paying bereavement support payment. In case your spouse or civil partner died before 6th April 2017, there are chances that you can avail of Widowed Parent’s Allowance.   Speak to one of our qualified accountants? Give us a call or request a callback. We are available for tailored services that suit your business’s unique requirements.    The Process to claim Bereavement Support Payment: Here is a discussion of the terms and conditions about how one can claim bereavement support payment. The following are needed if you intend to make a claim: You are required to provide a national insurance number. Provide your bank account details or building society account details. The date on which your partner died is needed. National insurance number of your spouse or partner. Once done with the above-mentioned requirements, you can apply online, by telephone, or by post. Moreover, if you opt for applying online, it is important to know that applications are accepted in a limited number on a daily basis.   Final Thoughts: Now that you have a basic understanding of bereavement support payment, the discussion can be summed up by saying that the amount of sorrow and loss is irreplaceable after the demise of a partner, however, the financial struggle that you might face after them can be taken care of in a good manner. We hope the development of the basic understanding of bereavement support payment along with the eligibility criteria and the simple explanation of the claiming process will bring a little ease to your struggle.   Still can’t find what you are looking for? Arrange a meeting or request a callback to speak to one of our professionals to get instant help just the way you desire.    Disclaimer: This article is based on general information about Bereavement Allowance and does not intend to challenge professional advice.

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potential exempt Transfer

All about Gifts and Exemptions from Inheritance Tax!

25/11/2021Accounting , Finance , Personal Tax , Taxation

It sounds like a great idea to gift your friends and family when you can enjoy the benefit of reduced estate value for inheritance tax purposes. This will immediately be advantageous for your own people as well. However, the potentially exempt transfer is a critical area and most people need professional help in order to ensure that they are avoiding any mistakes that might cause problems or loss in the future. This is important to know that a non-cash gift like the property share can make you or the recipient pay the capital gain tax if you do it while you are still alive. Choosing the right adviser with professional help can help you and the recipient make the most out of the opportunity. Before we delve further into the discussion, let’s have a look at the focused points of discussion in today’s article:     Explanation of Potentially Exempt Transfer Civil Partner, Spouse, Family and Charity – How much can I Give? The Bottom Line   Explanation of Potentially Exempt Transfer (PET): PET is the abbreviation of potentially exempt transfer and primarily this allows a person to make a gift of unlimited worth that can later be exempted from the inheritance tax. The condition here is that the person tends to live for seven years after this. In case the person does not live for the required time period, PET will be considered chargeable. This will result in adding the worth of the inheritance tax. Moreover, there are certain conditions that needed to be met for a lifetime potentially exempt transfer. Such transfers are normally considered as a gift from one person to another person or to a trust. The important point to notice here is that the gift can’t be given to a company or a corporation.   Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today.   Civil Partner, Spouse, Family and Charity – How much can I Give? It is allowed to the civil partners and the married couples that they pass their estate to their partner or spouse tax-free after the demise. In simple words, we can consider this fact as that the living spouse or partner can have the tax-free benefits of the whole estate without worrying about the inheritance tax IHT. Moreover, the unused tax-free allowance can also be transferred to the surviving spouse or partner. For instance, a husband dies and the wife has the right to enjoy the entire estate, she can now add her husband’s tax-free allowance to her allowance as well. In the case of the unmarried partner, there is a slight difference which means that they have to pay the inheritance tax. Making gifts to family and children: This will depend totally on you, however, it is important to plan correctly. As mentioned above the family members and children will not be accountable for paying inheritance tax if you survive after seven years of making the gift. Make sure you make a record of the following if you intend to give money or gifts to your friends and family: The worth of the gift The time when you make the gift The person you plan to give the gift A clear defined explanation of the gift or asset.   Coffee, cookies and taxes. What a perfect match. Get in the car, and reach our Croydon office today. Call us on 020 8686 8876 or email us to book your initial free one-hour basic consultation to discuss your requirements. We’ll make sure that we get all your documents submitted on time. Talk to our guys today!   Charity in Will: In case you decide to leave your money or physical asset for a charitable body, you can do it either in your lifetime or through your will. This will be exempt from inheritance tax. This will also help to reduce the IHT rate but if the condition of 10% of the net estate is met. This complex point will require professional help to make a qualifying gift.   The Bottom Line: Now that you have developed a better understanding of potentially exempt transfer, we can sum up the discussion by saying that it is suggested that the decision of making a gift should be considered with professional help due to the complexity of this area. This will help to ensure that the gift will qualify and you can benefit the most out of it.   Can’t find what you are looking for? why not speak to one of our expert’s accountants in London and see how we can help you are looking for.   Disclaimer: This article intends to provide general information based on potentially exempt transfers and relevant details.  

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