Student Loan Changes 2023

Last year, the government announced several significant changes to student loan plans. You may have noticed that your own loan deductions have changed since April 2023, or that a new plan will be implemented for this year’s students. In this blog we discuss how these updates will affect you.

Current Student Loan Schemes

Currently, there are four student loan repayment schemes. The scheme you pay through is dependent on criteria such as the country where you are based and when you started your studies. The current schemes are:

  • Plan 1 – Applies to all students, UK-wide, whose loans were taken before September 2012.
  • Plan 2 – Applies to English and Welsh borrowers from September 2012.
  • Plan 4 – Student Award Agency Scotland Loans
  • PGL – Postgraduate loans for England and Wales (PGL can also be called Plan 3)

You will only make repayments when your rate of pay passes the annual threshold. This, and the rate of deduction, is dependent on your loan scheme. The thresholds applied from April 2023 are in the table below:

Loan PlanPrevious Annual ThresholdAnnual Threshold from April 2023Rate of Deduction
1£20,195£22,0159%
2£27,295£27,2959%
4£25,375£27,6609%
PGL£21,000£21,0006%

Plan 5

A new student loan scheme called Plan 5 will be introduced for English individuals taking student loans from 1st August 2023, in place of Plan 2. The deduction rate shall remain at 9% of pay, but the threshold shall fall to £25,000 per year. This works out to £2083 per month, or £480 per week. This threshold shall remain until April 2028, after which it shall increase in line with the retail price index. This scheme will also increase the repayment period so that loans will be cleared after 40 years, rather than the usual 30.

Students on Plan 5 will not be expected to make payments until April 2026 at the earliest. This includes students who leave their courses early. The scheme will only apply to English borrowers as Welsh students shall remain on Plan 2.

Example:

If you were paid a salary of £26,000, you would only need to repay the 9% on the £1000 exceeding the threshold. This equates to £90 per year. If your salary was £30,000, you would be paying £450 per year.

By using this rule of £90 to pay per £1000 over the threshold you will be able to predict the contributions you are due to pay per year.

How are Student Loans Paid?

If you are employed, repayments are taken from your salary by your employer, much like tax and National Insurance. The amount deducted per pay period will be displayed on your payslips.

If you are employed but also complete a tax return you must include the total amount paid during the tax year. This figure will be reflected on a P60.

If you are self-employed the amount you owe will be calculated and included on your Self Assessment, and you will pay the amount at the same time as your tax. The figure can either be calculated before submission by your accountant, or by HMRC once it is submitted.

If you are self-employed and in need of advice, or if you are unsure if you need to complete a Self Assessment, please review the information on our page.

How to Apply for Student Loans

HMRC offer a step-by-step guide on applying for student loans. It will allow you to check if you are eligible and how large your loan can be. It also gives advice on reapplying during your study (which must be done each year of your course) and what happens with payments once you leave education. This guide can be found here.

FAQs

  • “Will my student loan go on my credit file?” – No, it doesn’t. This means that taking out student loans will not affect your ability to apply for a mortgage, for example.
  • “Is there interest on my loan?” – Yes, for Plan 5 loans the interest rate will be set at the rate of inflation for the current year.
  • “Does how much I owe on my loan affect how much I pay?” – No, as the amount you pay is solely related to your earnings. The remaining balance is not a factor.
  • “Can I make additional payments towards the loan?” – Yes. Additional payments can be made at any time during the repayment period; however, these payments cannot be refunded. You can find more information from HMRC here.
  • “Will I need to make repayments if I move abroad?” – Yes, you must still pay 9% on all earnings exceeding the currency equivalent of £25,000.
  • “When will I start repaying my student loan?” – If you are earning over the annual threshold, repayments will start the April after you leave university, but Plan 5 repayments will only start from April 2026.
  • “Are student loan contributions calculated before or after tax?” – Before tax. They are calculated the same way as National Insurance contributions.
  • “Will student loan repayments affect my pension contributions?” – The student loan repayment will be deducted before the pension contribution is calculated.

If you are usure of how your loan will affect your pay, please do not hesitate to contact us.

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September Mini Budget Breakdown

On 23rd September 2022, Chancellor of the Exchequer, Kwasi Kwarteng, announced a new growth plan.

This blog will provide a breakdown of the changes announced by the Chancellor and how they will impact you and your business.

 

Income Tax

The basic rate of income tax is set to receive its first cut in 15 years, reducing from 20% to 19%. This means that less tax will be applied to your non-dividend and non-saving income. This cut had been previously pledged by Rishi Sunak in the Spring but has been brought forward from 2024 to 6th April 2023. The government are currently estimating the average basic rate tax payers will save £130 per year.

 

When the growth plan was first announced, the decision was been made to scrap the 45% Additional Rate, which would have seen those earning more than £150,000 per annum being  charged at the current Higher Rate of 40% from April 2023. This has since been reviewed and, on 3rd October, a U-turn on the removal was announced; the 45% rate will now stay in place.

 

The 20% rate will stay in place for Gift Aid until April 2027.

 

Corporation Tax

The rate of corporation tax was initially expected to rise for companies with profits over £250,000 from 19% to 25% from April 2023. This increase has now been scrapped, meaning all companies will be paying at the 19% rate. The government hopes that this will encourage business owners to invest more into their companies, further improving and diversifying the UK economy.

 

National Insurance

At the beginning of the current tax year, National Insurance rates saw a 1.25% increase with the introduction of the Health & Social Care Levy. This aimed to increase funding for the worst affected sectors of the COVID-19 pandemic. It has now been announced that the levy will be reversed from 6th November 2022, and the National insurance rate will return to 12%. Plans to introduce the levy as a separate tax in the next tax year have also been scrapped.

This change will be reflected by a blended National Insurance rate on Self Assessments upon submission to ensure that the correct contribution is made.

This change will reduce the National Insurance bills of companies, giving a potential for further investments.

Dividends

Dividend tax rates will also fall by 1.25% in the next tax year following the removal of the Health & Social Care Levy.

 

Annual Investment Allowance

The Annual Investment Allowance (AIA) available to claim is set to permanently be £1,000,000. Plans had previously been put in place to reduce this to the previous amount of £200,000 in March 2023. AIA allows you claim 100% tax relief on assets up to the set amount. By having this as the higher amount, businesses will be able to claim more relief, reducing their tax.

 

Stamp Duty

Significant cuts to Stamp Duty have been announced, and all have come into effect as of midnight on 23rd September. Stamp duty is a form of tax applied when documents are recognized, most commonly through the purchase of houses.

The Nil Rate Band has doubled, increasing from £125,000 to £250,000, allowing more people to buy homes without paying any stamp duty. It is expected to save the average buyer £2500.

First-time home buyers will not have to pay stamp duty up to £425,000 and can claim relief on properties up to £625,000.

 

Additional Changes

  • Universal Credit Claimants who earn less than 15 hours per week at the National Living Wage will be required to meet with a Work Coach to help increase their earnings. Their benefits could be reduced if these meetings are ignored. Extra support will be offered to jobseekers over 50.
  • New legislation will be implemented to decrease planning and building times for new roads and energy infrastructure.
  • Changes in regulations on private investments are set to allow more funding from pension funds. This is expected to boost economic growth and see a particular increase in science and technology investment.
  • Alcohol duty will be frozen for another year and is expected to be reviewed and modernised.

 

It is expected that in the coming weeks, like with all changes in government, further plans will be announced, tackling issues like the reduction of childcare costs and the housing supply, as well as a review on digital infrastructure.

 

If you have any concerns regarding these changes and how they could impact you and your business, do not hesitate to contact us. You can find our contact information here.

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Dividends and Income Tax Changes April 2022

Changes to Dividends

As the new tax year begins, many changes will be made to reflect the current economic climate of the United Kingdom. One such change that shall come into effect from the 6th of April 2022 is a 1.25% increase in the Income Tax rates applied to dividends.

What are Dividends?

Dividends are the payments made out to the shareholders of a company, such as directors and investors. The dividends will come from the remaining value after the Corporation Tax that is due is taken from the total profit for the period. Because of this, the total dividends issued must not exceed the company’s profits from the current, or previous, periods.

Paying Dividends

The amount that each shareholder will be paid is dependent on the number of shares in the company that they hold. The dividends they receive will be proportional to their shares.

For dividends to be paid, a directors’ meeting must be held to the payment to be declared, even if the company only has one director, and a dividend voucher must be completed. The dividend voucher will include the date, the company name, the shareholder’s name, and the amount of dividend they will be paid. Dividends are usually paid quarterly but can also be paid in other installments such as annually or bi-annually.

Many companies will choose to pay their directors through a mix of both salary and dividends. This is because National Insurance contributions are not deducted from dividends; they are more tax efficient.

The New Income Tax Rates

The rise in Income Tax is being introduced as a part of a government scheme to increase funding for the health and social care sector, after it was hit hard by the pandemic over the last two years. Please view the table below to see how your tax rate will be impacted by the increase:

Tax Brackets Thresholds (£)

 

 Dividend Tax Rate
2021/22 2022/23
Personal Allowance

(If no other income)

 0 – 12,570 0% 0%
Basic-Rate 12,571 – 50,270 7.5% 8.75%
Higher-Rate 50,271 – 150,000 32.5% 33.75%
Additional-Rate Exceeding 150,000 38.1% 39.35%

The £2,000 dividends allowance introduced in April 2018 will still be available, meaning that any dividends within that amount will not be subjected to any tax deductions.

The government have predicted that the average loss that will be suffered because of the increase will be around £335 for those affected but has stated more than 50% of shareholders may not even need to pay any Income Tax on their dividends as they fall within the personal allowance or dividend allowance thresholds.

 

If you are interested in learning about the other changes brought in with the new tax year, please refer to our previous blog.

If you require assistance or any further information about how your dividends may be affected, please do not hesitate to contact us.

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Changes From April 2022

With the new tax year comes several changes brought forward by HMRC. Here is a short guide to help you navigate the updates that may affect you and your business from April 2022.

 

Reduced VAT is Ending

The reduced VAT rate of 12.5% will be increasing back to its pre-COVID rate of 20%. The reduced rate was initially introduced in July 2020 at 5%, rising to 12.5% in October 2021, to help businesses within the hospitality sector to help with their finances after the drastic impact of the Coronavirus pandemic on their trade. This return follows the timeline set in the Spring 2021 budget.

VAT Surcharges

The changes to penalties and interest rules which were due to come in place from April 2022 has now been delayed to January 2023

Making Tax Digital

Making Tax Digital (MTD) will apply to all VAT-registered businesses from 1st April 2022. This means that, for any VAT periods starting on or after this date, VAT registered businesses must keep all of their VAT records digitally and submit VAT returns using software that is MTD accordant.

Changes to National Insurance

National Insurance (NI) is going to increase by 1.25% from 1st April 2022. Those receiving a State Pension will also receive a levy of 1.25%. This increase in tax will be in place until 31st March 2023 and has been put in place to help contribute to increased health and social care costs incurred over the pandemic.

New PAYE Thresholds

From year 2022-2023 to tax year 2025-2026, the personal allowance will be £12,570 per year

In England, Wales, and Northern Ireland the basic tax rate of 20% will be applied to annual earnings above the threshold, up to £37,700 a year. The higher tax rate will be 40% on annual earnings between £37,701and £150,000, with the additional tax rate of 45% will be applied to earnings above this.

In Scotland, their starter tax rate of 19% applies to earnings above the threshold and up to £2,162, the basic rate of 20% applies to annual earnings between £2,163 and £13,118, and the intermediate rate of 21% applies to annual earnings between £13,119 to £31,092. Scotland’s higher rate of 41% applies to annual earnings between £31,093 and £150,000, and the top rate applied to earning above this is 46%.

Increase on Statutory payments

Statutory maternity pay (SMP), Statutory paternity pay (SSP), Statutory parental pay (SPP), Statutory adoption pay (SAP) and bereavement pay will change on April 2022. All will see the weekly rate of statutory pay increase from £151.97 to £156.66 per week.

From 6th April 2022, the rate of statutory sick pay (SSP) will also increase from £96.35 to £99.35 per week.

Any employee who earns more than (or equal to) the lower earnings limit, that will increase to £123 on the same date, is entitled to statutory pay.

 

Please do not hesitate to contact us regarding any of the above changes and how they may impact your business

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Working out Corporation Tax on calculator

How to Pay Corporation Tax

As a limited company based in the UK, you must legally pay Corporation Tax on all taxable profits regardless of where in the world the profit was made. This guide explains everything you need to know about Corporation Tax, including what it is, when it’s due, how to work out how much you owe based on the Corporation Tax rate, and how to go about paying Corporation Tax.

 

What is Corporation Tax?

All UK-based limited companies must pay Corporation Tax. Foreign companies with a UK branch or office are also required to pay tax on the profits made in the UK, along with clubs, co-operatives, and other unincorporated associations.

For organisations based in the UK, the tax applies to all taxable profits whether the money came from work completed in the country itself or abroad. More specifically, your company or association must pay Corporation Tax on the money it makes from:

  • Its usual business (referred to as your ‘trading profits’);
  • Sale of assets for more than they cost (known as ‘chargeable gains’);
  • Investments.

Bear in mind that you won’t receive a bill for Corporation Tax and the onus is on your organisation to arrange the payment – you must first register with the Government, which can be done online via the gov.uk registration page.

 

When is Corporation Tax due?

The deadline for paying Corporation Tax is dependent on the profits your organisation makes:

  • If your taxable profits are less than £1.5 million, you have 9 months and 1 day after the end of your accounting period to pay the Corporation Tax owed (in most cases, your accounting period will be the same as the financial year of your business).
  • Organisations with taxable profits in excess of £1.5 million must pay Corporation Tax in a series of instalments: the first instalment must be paid within 9 months and 1 day of the accounting period ending, then subsequent instalments are usually required every 3 months from then on.

Ensure that you have paid the amount owed by your deadline – if you miss a deadline, your organisation will be charged interest on the outstanding amount. On the other hand, if you pay your Corporation Tax early, HMRC will pay interest to your business.

In situations where your deadline falls on a bank holiday or weekend, make sure that your payment goes through by the last working day before this.

 

How to work out Corporation Tax

As part of your Company Tax Return, you’ll need to work out how much Corporation Tax your organisation owes. The current Corporation Tax rate in the UK is 19%. From the 1st April 2023, Corporation Tax will increase to 25% for profits of over £250,000 (see the government announcement to learn more).

To work out how much Corporation Tax you owe, first calculate your total profits for the accounting period (including chargeable gains and investments). Subtract from this the value of costs associated with running your business, including allowances on assets you’ve bought such as:

  • Equipment
  • Machinery
  • Business vehicles

Consult the gov.uk ‘Allowances and tax reliefs’ page for more detailed information on the deductions you can make.

The amount left after deducting allowances is your taxable profit for Corporation Tax. The amount you owe is based on the rate during the accounting period in question – this would be 19% of the taxable profit at present.

If the rate of Corporation Tax changed during your accounting period, then separately work out the tax due during the period before the rate was changed and during the time after. Add these two amounts together to get your total Corporation Tax owed for the accounting period.

 

How do I pay Corporation Tax?

There are several payment options for Corporation Tax, each of which takes a different number of days for your transfer to clear. Check how long your chosen payment method will take and make sure to allow enough time for the payment to go through in time for the deadline.

Regardless of which option you choose, you’ll need to have your 17-digit Corporation Tax reference number for the accounting period to hand. Before you make your payment, make sure you’ve submitted your Company Tax Return, which includes the amount of tax you owe.

Same-day payments

If you’d like your payment to go through on the same day, you can either pay via Clearing House Automated Payment System (CHAPS) or Faster Payments (online or over the phone). 

Three working day payments

BACS transfers, Direct Debits, online payments, and in-person payments at banks or Post Offices take around three working days in most cases. Paying corporation tax online is easy – just visit the gov.uk ‘Pay your Corporation Tax’ page. 

Five working day payments

The first time you set up a Direct Debit for recurring Corporation Tax payments, it should take around five working days for the payment to go through.

 

Checking your payments

Once you’ve paid your Corporation Tax, you should log in to your HRMC account to ensure that your payment has been received (your account will usually be updated within a few days of you making the payment).

 

Should I tell HMRC if there is no tax due?

Even if you calculate in your Company Tax Return that you have no Corporation Tax outstanding, your organisation is legally required to notify HMRC of this. You can inform them either by completing a ‘nil payment’ form on the HMRC ‘No Corporation Tax payment due’ page or by returning a signed Corporate Tax payslip for the accounting period marked with the words ‘NIL due’.

 

This guide has explained how to pay Corporation Tax, as well as providing all of the information you need on deadlines and how to work out how much your organisation owes.

We can help you with your Corporation Tax by:

  • Informing HMRC that your company is liable for Corporation Tax
  • Working with you to calculate how much you owe, and ensuring that you meet your deadline
  • Establishing any allowances and reliefs your business may be eligible for

Get in touch today to learn more.

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UK Budget 2021: The Key Points

Today, Chancellor Rishi Sunak announced the 2021 Budget, laying out plans on how the country will recover from the economic effects of coronavirus.

Sunak’s plans detailed how a further £65 billion worth of support will be introduced, as well as several other announcements that will affect businesses, the self-employed and working families. Here is a breakdown of everything you need to know.

Further COVID-19 support

The chancellor delivered some key points surrounding support following coronavirus:

  • Furlough will be further extended up until September 2021. The Government will continue to pay 80% of employees’ wages for hours that they cannot work. Employers will be asked to contribute 10% in July and 20% in August.
  • The self-employed will receive further help as it was announced that the Self-Employment Income Support Scheme will be extended up until September 2021, covering 80% of average trading profits up to £7,500. These schemes will also become more accessible as the access to the grant is widened: if you filed a tax return for the 2019-20 tax year, you will now be eligible to claim for the first time.
  • The £20 uplift in Universal Credit will be extended for another six months. A one-off payment of £500 will be available to eligible Working Tax Credit claimants.

 

Help for businesses

There have been several new plans announced to help businesses:

  • From April 2021, businesses will be able to claim a new Restart Grant to help them open following the coronavirus pandemic. These are a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses. Retail businesses could claim up to £6,000.
  • A new Recovery Loan Scheme was announced, meaning that businesses of any size could get a loan of between £25,001 and £10 million to help businesses through the next stage of recovery.
  • The apprentice hiring incentive has now doubled meaning businesses will now receive a payment of £3,000 if employers hire a new apprentice between 1st April 2021 and 30th September 2021.
  • An additional £300 million in support will be provided to the arts to support theatres, museums and other cultural organisations.
  • The 100% business rates holiday will continue until June and then will be cut by two-thirds for the remainder of the year.
  • A Help to Grow business scheme had been announced to provide free training and discounts on productivity software to help businesses grow – you can apply for the Help to Grow scheme here.
  • All small to medium-sized businesses will be able to continue to claim up to two weeks of eligible Statutory Sick Pay costs per employee from the government.
  • Businesses will be able to carry back losses of up to £2 million for up to 3 years to support cashflow.

 

Taxation

  • The VAT cut for the hospitality sector will stay at 5% until 30th September, at which point it will then change to 12.5% for 6 months until April 2022.
  • Alcohol and fuel duty had been frozen.
  • Corporation Tax will increase to 25% in 2023. Businesses with a trading profit of £50,000 or less will be taxed at 19%. Businesses with profits greater than £250,000 will be taxed at 25%.
  • A new super-deduction will be introduced which will cut companies tax bills by 25p for every pound they invest in new equipment.

 

Housing

  • The Chancellor announced that 95% mortgages will return meaning first-time buyers have the option to buy a home worth up to £600,000 with a 5% deposit
  • The temporary cut in residential Stamp Duty Land Tax (NIL to £500,000) has been extended to 30th June 2021. From 1st July to 30th September 2021, the NIL rate band will be reduced to £250,000 before going back to £125,000 as from 1st October 2021.

 

National Living Wage & personal tax threshold

  • The National Living Wage will increase to £8.91 as of April 2021.
  • The personal tax threshold will freeze at £12,500 up until April 2022, after which point it will increase to £12,570 and then freeze again until April 2026.
  • The higher rate income tax threshold will be frozen at £50,270 from April 2022 to 2026.

 

If you need further advice following the proposed changes announced by Rishi Sunak, you can contact our team today and we will be more than happy to answer any queries you may have.

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Construction workers

The Construction Industry Scheme (CIS) and CIS Deductions

The Construction Industry Scheme (CIS) requires contractors to deduct money from payments made to self-employed subcontractors and pass this on to HMRC. The amount taken off is referred to as a CIS deduction – it works as an advance payment on the subcontractor’s tax and National Insurance (NI) contributions.

If you’re a contractor, you must register for the scheme. As a subcontractor, you’re not required to register for the scheme but doing so will reduce your CIS deductions (more on this in the section below).

Over the course of this guide, we’ll cover everything you need to know about CIS and CIS deductions. Starting by explaining who the Scheme applies to, this post goes on to explain how much the deductions should be, how to register, and how to submit returns as a contractor.

 

Who does the Construction Industry Scheme apply to?

CIS applies to all construction contractors who pay subcontractors; it also applies to self-employed subcontractors working in construction and receiving payments from a contractor. If you are employed by a contractor and are subject to PAYE, then CIS deductions do not apply to you.

Most types of construction work are covered by the Scheme. If you’re working on a building, structure, or civil engineering project, then CIS applies.

The type of work involved could be:

  • Building work
  • Decorating, alterations, and repairs
  • Preparing the site
  • Cleaning the inside of buildings after construction work
  • Demolition and dismantling
  • Installation of heating, lighting, power, water and ventilation systems

There are some notable exceptions to CIS. You are not subject to CIS deductions if your work involves:

  • Architecture and surveying
  • Scaffolding hire
  • Carpet fitting
  • Making construction materials
  • Delivery of materials
  • Secondary work on construction sites such as running site facilities

If you’re unsure whether the scheme applies to you or not, visit the Government’s page.

 

How much should CIS deductions be?

For subcontractors who are registered with CIS, the standard rate is 20% of the invoiced amount for work and travel expenses. The total invoiced amount excludes VAT paid and any expenses for materials or tool hire.

In cases where the subcontractor is not registered with CIS, the rate increases to 30% of the invoiced amount (still excluding VAT and materials or tools expenses).

As a subcontractor working in construction, you can claim some expenses back when you fill in your Self-Assessment tax return – take a look at our CIS returns service to find out more.

 

Registering for the Construction Industry Scheme

Contractors that pay subcontractors must be registered for CIS, but we would also recommend that subcontractors register so that they are subject to the reduced deduction rate of 20% rather than 30%.

To register for CIS as a sole trader, head over to the Government’s portal. The following details will be required to complete the registration process:

  • Your legal business name or trading name
  • Your National Insurance Number
  • The unique taxpayer reference number (UTR) for your business or sole trading entity
  • Your VAT registration number (if you’re VAT registered).

If you’re registering as a company, you’ll need to use the online CIS305 form. To register as a partnership, use the CIS304 form.

 

Gross payment status

As a subcontractor, you can avoid having CIS deductions taken by applying for gross payment status when you register for CIS. To qualify for this, you must show that:

  • You’ve paid your tax and National Insurance on time before
  • You work in construction in the UK
  • You take payments through a bank account
  • Your turnover is more than £30,000 (excluding VAT and materials).

If all of these conditions apply to you, then you can apply for gross payment status during the registration process (visit the gov.uk page for more information).

 

Making CIS deductions

Before making a CIS deduction as a contractor, you need to go through the verification process:

  1. Contact HMRC with the details of the subcontractor.
  2. HMRC will check whether the subcontractor is registered.
  3. You will be contacted with the correct CIS deduction rate to apply.

In some cases, HMRC may contact you to advise you that no deduction is required. However, if a deduction is required:

  • First, calculate the total amount by subtracting VAT paid and materials or tools costs from the amount the subcontractor has invoiced. Apply the rate of CIS deduction that HMRC has advised (either 20% or 30%).
  • Make the deductions and send the deducted amount to HMRC.
  • Record details of the payment, material costs, and deduction amount.
  • Send the remaining payment to the subcontractor.
  • Complete a statement of deduction.

The CIS deduction statement should be sent to the subcontractor within 14 days of the end of each tax month.

 

Submitting returns as a contractor

As well as providing CIS deduction statements to their subcontractors, contractors must also submit their monthly CIS return within 14 days of the end of each tax month (this means the return must be submitted no later than the 19th of each month). For example, if you are making a return for the tax month from 6th April to 5th May, the deadline for this will be the 19th of May. 

To do this, you’ll need the following:

  • An email address
  • Your Employer Reference Number (ERN)
  • Your 13-digit Accounts Office reference number

When you’ve got these details together, visit the Construction Industry Scheme (CIS) online service to submit your returns.

 

This guide has explained the Construction Industry Scheme and CIS deductions. If you’re a contractor, we offer a comprehensive CIS returns service and can support you with everything from verifying subcontractors to deduction statements and CIS returns – don’t hesitate to get in touch.

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Choosing a Crowdfunding Platform: Top Tips, Taxes, and Fees

As a content creator, crowdfunding platforms offer an easy and accessible way for you to generate an additional source of income through your work. Unlike other revenue streams such as advertising and merchandise sales that you might have explored, it’s easy to get started with crowdfunding straight away and there are no setup costs involved.

To help you pick which one is right for you, this guide explores some of the pros and cons of the main crowdfunding platforms and offers insights based on our accountancy work for content creators.

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Working From Home Tax Relief

Millions of us have been working from home due to the COVID-19 pandemic. If you’ve been working remotely, your household bills might have increased over the past few months – and you may even have had to invest in a new broadband connection to support your work. The good news is that you may be able to claim tax relief to help cover the extra cost.

The Government’s working from home allowance scheme began in October 2021 and has already had an impressive uptake: in the first six weeks alone, more than one million people applied to HMRC. In this WKM guide, we explain who is eligible for the new tax relief, the amount you could claim, and how to claim it.

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