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How much per hour is the National Living Wage? From April 2023 the new rate is £10.42 per hour. The rate is currently £9.50 (2022/23 tax year) Who qualifies for the National Living Wage? In April 2021 the qualifying age was raised to those aged 23 years old and over. This will remain the same in the next tax year 2023/24. NOTE: Prior to April 2021 the qualifying age was 25 years old and over. What [...]

Who needs to pay personal tax UK individuals who are registered for self-assessment must pay their personal tax liabilities by 31st January each year. A further payment maybe due by 31st July if you are required to make payments on account.   How to pay your personal tax liability using your mobile phone? In our opinion, the most convenient way to pay your personal tax liability is using the HMRC app on your mobile phone. [...]

Making tax digital for income tax has been delayed until April 2026. This effects all self-employed individuals, landlords and partnerships. What is making tax digital for income tax? Making tax digital is a HMRC initiative, which requires businesses to use software to maintain their record of income and expenses. The most popular software providers on the market are Excel, Quickbooks, Sage and Xero. What was due to happen? From April 2024, all self-employed individuals and [...]

As a director you’re legally separate from your limited company, even if you’re also the owner. This means that you’re not allowed to simply keep the profits for yourself in the same way that a sole trader can. Instead, you’ll need to decide how much to pay yourself. The most tax-efficient way to take an income from your own limited company is normally through a combination of a low salary (in the same way as [...]

Self-Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. Tax is usually deducted automatically from wages, pensions, and savings. People and businesses with other income such as Self-Employed, (including COVID-19 grants and support payments) must report it in a tax return.   DO I NEED TO FILE A SELF ASSESSMENT TAX RETURN? You will need to file a Self-Assessment tax return if you are: self-employed as a ‘sole trader’ and earned [...]

What is Self Assessment? You tell HMRC about your taxable income and gains for a tax year by completing a Self Assessment tax return. Part of the process is to work out and pay what you owe.   When do I have to complete a Self Assessment tax return? You must fill in a tax return if HMRC have sent you a ‘notice to file’ asking you to do so. This is the case unless [...]

When you’re in the sales invoice screen you have the choice of using new or classic invoicing. Classic invoicing requires you to manually enter all the information, while new invoicing prefills many of the details for you and automatically saves your work. To check which one you’re on, see the link at the bottom of the screen. If it says Switch to new invoicing, then you’re on the classic invoicing screen. If it says Switch to classic invoicing, then [...]

Getting Started With Xero Bank Feeds: Edit Your Bank Details To set up bank feeds in Xero, you’ll need to go to “Accounting”, then “Bank Accounts”. From here, simply follow these steps: On the account, you want to add a bank feed, so click “Manage Account”, then “Edit Account Details”. In the “Your Bank” box, type in the name of your bank account. Please ensure that you choose the right one, bearing in mind that [...]

How to Use the Dext Mobile App The Dext Prepare Mobile app is the quickest and easiest way to submit your receipts, invoices and other documents to Dext Prepare.  How to Access the App Amica Accounting will send you an invitation to use the Dext mobile app via text message. This makes the process nice and simple. 1. Click on the link within the text message. 2. Enter your password and click Create Account 3. Follow [...]

When you can claim VAT back You can claim VAT back when: you’ve purchased goods or services for your business a customer leaves you with a bad debt VAT on business expenses When you buy something for your business, you’re usually charged VAT. If you’re registered for VAT, you can claim that back. You do this by reporting how much VAT you paid during a period of time. HMRC balances the amount you’ve paid against [...]

Who needs to register for VAT? Some businesses have to register for VAT, some aren’t allowed to, and others can choose. Who must register for VAT: Businesses with an annual taxable turnover of more than £85,000. You may be fined if you don’t register. Who is not allowed to register for VAT: Businesses that sell only VAT-exempt goods and services. Who can choose to register for VAT: Businesses with an annual taxable turnover of less than £85,000. Benefits [...]

HMRC relies heavily on the Government Gateway system to allow access by tax payers and agents to records. It is therefore important to know how to set these up. This blog walks you through how to create a government gateway account in the quickest and most straightforward way possible. Creating and setting up your government gateway account might seem mundane, but ensuring that it is done in the right way will allow you to manage [...]