Artifin Accountants UK

  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....

  The Tax Trap Hiding in Your Books If your director's loan account is overdrawn, HMRC is watching. And they're waiting to charge you 33.75% tax. How This Actually Happens You've taken more money from the company than you've paid in. That's an overdrawn director's loan. HMRC gives you 9 months after year-end to fix it. Miss that deadline, and the tax bill lands. 33.75% isn't negotiable. It's not a fine. It's tax. The Solution Exists Pay the loan back before the 9-month window closes. The tax disappears. Leave it longer? You'll face penalties on top. Don't Wait Until It's Too Late If you haven't reviewed your director's loan account recently, do it this week. If you're unsure about the status or the tax implications, speak to your accountant immediately. Getting ahead of this saves thousands. Understand the Full Picture Read our guide on director's loan accounts: https://artifinaccountants.co.uk/overdrawn-di...

  CIS Gross Payment Status: A Subcontractor's Guide to Stopping 20% Deductions If you're a UK subcontractor, having CIS gross payment status can significantly improve your cash flow. Instead of having 20% tax deducted from every payment under the Construction Industry Scheme (CIS) , contractors pay you in full, leaving you responsible for settling your tax through self sssessment or corporation tax. For many growing construction businesses, this means thousands of pounds remain available to cover wages, materials, equipment, and operating costs instead of being tied up until a tax refund is processed. Understanding who qualifies and how to apply can make a substantial difference to your business. What Is CIS Gross Payment Status? CIS gross payment status allows eligible subcontractors to receive payments without CIS deductions from contractors. Normally: Payment Status Contractor Deduction Gross Payment Status 0% Registered Subcontractor 20% Unregistered Subcontractor 30% A...