Artifin Accountants UK

  Getting an HMRC penalty in the post can be frustrating, especially when you feel there was a valid reason for missing a deadline. The good news is that penalties are not always final. HMRC allows taxpayers to appeal where a penalty is incorrect or where a reasonable excuse prevented them from meeting their tax obligations. However, an appeal needs more than a disagreement with HMRC. The strongest cases have a clear explanation, relevant dates and evidence showing exactly what went wrong. When Can an HMRC Penalty Be Appealed? You can normally challenge a penalty if you believe HMRC made an error or you had a reasonable excuse. This could include situations where HMRC recorded a return as late despite receiving it on time. You may also have grounds if HMRC later confirms that you did not need to submit the return. For most penalties, HMRC says taxpayers usually have 30 days from the date the penalty was issued to appeal. A late appeal may still be considered, but you will need to...

What Is a Payment on Account? HMRC asks many self-employed taxpayers to pay next year's tax in advance. This comes in two instalments, due on 31 January and 31 July. The amount is based on last year's tax bill. When You Can Reduce It If you earned less this year than last year, your tax bill will likely be lower too. You can reduce your Payment on Account to match. Do this through your HMRC online account or by submitting form SA303. Two Rules to Follow 1. Don't cut it to zero unless you earned nothing this year. If you underpay, HMRC charges interest on the shortfall. Reduce it to a realistic figure based on your actual income. 2. Overpaying isn't a problem. Once HMRC processes your tax return, you can claim back every penny you overpaid. Can't Afford to Pay Right Now? Set up a Time to Pay arrangement before the deadline. This spreads the cost and protects you from daily interest, which starts building from 1 August. Not Sure What Your Payments Should Be? This is...

Thousands of UK SMEs pay for a statutory audit they no longer need. New rules mean many companies now qualify for exemption. Here's how to check where you stand. What Is a Statutory Audit, and Why Does It Cost So Much? A statutory audit is an independent check of your company accounts by a registered auditor. It confirms your numbers give a true and fair view. It's thorough. It's also expensive. Most small UK companies pay between £5,000 and £15,000 a year for one they might not legally require. The Audit UK Thresholds Just Changed From 6 April 2025, the audit exemption thresholds rose for the first time since 2016. Your company is exempt if it meets two of these three conditions : Annual turnover of £15 million or less Balance sheet total of £7.5 million or less Average of 50 employees or fewer That's a sharp jump from the old limits of £10.2 million turnover and £5.1 million balance sheet. Many businesses that needed an audit last year no longer do. ...

  The Current Exemption Rules If your gross income is under £50,000, Making Tax Digital isn't mandatory yet. Self-employed sole traders and landlords below this threshold are still exempt from the digital reporting requirements. The HMRC Roadmap The exemption window is narrowing on a fixed schedule: Now: Exempt if under £50,000 April 2027: Exempt if under £30,000 April 2028: Exempt if under £20,000 If your combined self-employment and property turnover falls anywhere in these brackets, you'll eventually fall under Making Tax Digital . Planning Ahead Matters You're not forced into compliance today. But the transition is coming. Smart businesses don't wait until the last moment. They prepare 6-12 months early—choosing software, testing processes, training teams. Know Your Specific Timeline Where does your business sit? Combined turnover of £35,000? You're exempt now, but April 2027 changes everything. £22,000? You've got until April 2028—but plan...

  HMRC has introduced a temporary reduced rate VAT of 5% for selected family-focused supplies between 25 June 2026 and 1 September 2026. The change affects businesses operating in hospitality, leisure, tourism and entertainment sectors, including restaurants, cafés, cinemas, theatres and family attractions. The temporary reduction in VAT rate aims to support families during the summer holidays by lowering the cost of selected activities. For businesses, however, the change creates an important compliance obligation. During this short period, it will be critical to get the correct VAT treatment, update systems, and keep records accurate. What Does the 5% VAT Rate Apply To? HMRC's temporary reduced rate applies to three main categories: Children's Meals Children's meals can qualify for the 5% VAT rate where they are Served on-site Advertised specifically as children's meals Priced exclusively as children's meals A smaller portion of an adult meal does not qualify....