National Insurance
What Is National Insurance in the UK? If you live and work in the UK, you’ve probably heard of National Insurance (NI)—a regular deduction from your wages or self-employed earnings. But what exactly is National Insurance, and why do we pay it? In simple terms, National Insurance is a tax...
Dividends Explained
Dividends Explained: A Guide for Limited Company Directors Dividends are payments made by a limited company to its shareholders from available profits. They are a common way for owner-directors to take money from their company, often alongside a salary. However, dividends cannot simply be taken whenever money is available in...
5 Common Tax Return Mistakes
Five Common Self Assessment Tax Return Mistakes Self Assessment brings together income, expenses, tax already paid and available reliefs. Small errors can produce an incorrect bill, delay a repayment or lead to questions from HMRC. 1. Missing a Source of Income A tax return may need to include employment, self-employment,...
Last-Minute Self-Assessment Prep:
How to Avoid January Stress Every January, thousands of UK taxpayers face a frantic dash to meet the 31 January Self-Assessment deadline. Whether you’re a sole trader, landlord, or company director, late filing can mean penalties, sleepless nights, and missed opportunities to cut your tax bill. The good news? With...
Understanding Pensions
Planning for retirement is an essential part of financial well-being, and pensions remain one of the most tax-efficient ways to save for the future. For business owners and individuals in Cambridge knowing how pensions work—and the opportunities for tax relief—can make a significant difference. Tax and pensions UK pensions are...
What is Corporation Tax
What Is Corporation Tax? A Guide for UK Companies Corporation Tax is charged on the taxable profits of limited companies and certain other organisations. It can apply to trading profits, investments and gains made when assets are sold. The company is responsible for calculating its liability, paying the tax and...
Business Expenses
Business Expenses: What Can You Claim? Allowable expenses reduce the profit on which a sole trader or partnership pays Income Tax. Limited companies can deduct qualifying costs when calculating Corporation Tax. However, the detailed rules differ according to the business structure and type of expenditure. The Basic Rule For a...
Your Profit and Loss Statement
Understanding Your Profit and Loss Statement A profit and loss statement, often called a P&L or income statement, summarises a business’s income and expenses over a specific period. It shows whether the business made a profit or loss, but it does not show the complete cash position. What Does a...
Income Tax
Income Tax Explained for 2026/27 Income Tax is charged on taxable income received by individuals. This can include employment income, self-employment profits, pensions, rental income, savings interest and dividends. Not every type of income is taxed in the same way. Separate allowances and rates can apply, and Scottish taxpayers have...
Making Tax Digital
What Is Making Tax Digital for Income Tax? Making Tax Digital for Income Tax changes how qualifying sole traders and landlords keep records and report information to HMRC. Instead of dealing with everything after the tax year, they must maintain digital records and send updates during the year. Who Must...
