2016/17 tax calculation for a tax payer who has employment, self employment and rental income I am a graphic designer in full time employment on a salary of £35,000. I also have some self employed work which totals about £8,000 and rental income from a buy-to-let which is in joint names with my wife, for… Read More

Self assessment payments on account I am a self employed physiotherapist and I have received a letter from HMRC saying that I need to make a payment by 31 July 2016 as a payment on account for my tax. Can you explain what this is?   Answer, July 2016 Your payments on account are an… Read More

Sole trader or limited company for side business? Question, I work full time on a salary of £50k and I am also about to start a business. I am not sure whether to set this business up as a sole trader or a limited company – which will be the most tax efficient? I have no plans to… Read More

National Insurance For The Self Employed 2016/17 update – past, present and future National Insurance was first introduced in the UK in 1911 as a contribution to certain state benefits provided for illness and unemployment. This was later expanded to include a contribution to the state pension and the National Health Service. These funds collected… Read More

What is a reasonable excuse for the late filing of a personal tax return? An interesting tax case which covers this topic is that of Ann Hauser vs HMRC. HMRC had assessed penalties on the tax payer because they said she had not filed her tax return for 2012/13 by the filing deadline of 31 Jan 2014. The… Read More