How Much Can I Earn Before Paying Tax?+
The personal allowance is £12,570 for 2026/27 — with the freeze extended to 2030/31 at the Autumn Budget 2025, quietly pulling more people into tax each year as wages rise. Above £100,000 it tapers away at £1 for every £2, vanishing entirely at £125,140.
What Is The 60% Tax Trap?+
Between £100,000 and £125,140, every £100 of income costs you £40 in tax plus £20 of lost personal allowance — an effective 60% rate (62% with NI). A pension contribution that drops you below £100,000 is often the single best-returning financial decision in Britain.
How Much Do I Repay On A Plan 2 Student Loan?+
9% of everything you earn above £29,385 (2026/27). On a £40,000 salary that's about £80 a month. It comes out through PAYE like a tax — and stops the moment the loan is repaid or written off, 30 years after you first became liable.
When Is My Student Loan Written Off?+
Plan 1: 25 years after liability began. Plan 2 and Plan 4: 30 years. Plan 5: 40 years — most of a working life. Postgraduate loans: 30 years. Many graduates will never repay in full, which is why overpaying isn't automatically wise — run the numbers first.
Do I Repay My Student Loan If I'm Self-Employed?+
Yes — HMRC calculates it through your Self Assessment, 9% of profits above your plan's threshold, payable with your January tax bill. It catches people who budgeted for income tax and Class 4 NI but forgot the loan line entirely.
Should I Pay Off My Student Loan Early?+
Only if you'll realistically clear the full balance before write-off. If repayment behaves like a 9% graduate tax you'll never finish paying, voluntary overpayments are money thrown at a balance destined to be written off anyway. High earners early in their careers are the main group who genuinely benefit.
When Is The Self Assessment Deadline?+
Online returns and payment: 31 January following the tax year. Paper: 31 October. Miss January and it's an instant £100, then daily penalties from three months. We file in autumn — January is for other firms' clients.
What Are Payments On Account?+
Advance payments toward next year's tax — half on 31 January, half on 31 July — each equal to 50% of last year's bill. They ambush first-year Self Assessment taxpayers, who effectively pay 150% of a year's tax in one January. We forecast and reduce them when income falls.
How Much Is Corporation Tax In 2025?+
19% on profits up to £50,000, 25% from £250,000, with marginal relief between (an effective 26.5% on profits inside the band). Associated companies split those thresholds — two companies halve them — which is how a "small" company finds itself at 25%.
Salary Or Dividends — Which Is Better?+
Usually a small salary (around the NI threshold) plus dividends — dividends escape National Insurance. But with the dividend allowance cut to £500 and corporation tax at up to 25%, the gap has narrowed sharply. The right mix now depends on your profits band; it's a calculation, not a rule of thumb.
When Must I Register For VAT?+
When taxable turnover in any rolling 12 months passes £90,000 — a rolling test, not a tax-year one, which is how seasonal businesses get caught late. Registration is also sometimes worth doing voluntarily, to reclaim input VAT.
What Is Making Tax Digital?+
HMRC's mandate for digital records and software-filed returns. VAT is already fully in. MTD for Income Tax went live in April 2026 for the self-employed and landlords earning over £50,000 — quarterly updates now replace the single annual return, with the £30,000 tier joining April 2027 and £20,000 from April 2028. Most of Britain wasn't ready; our clients were.
When Are Company Accounts Due?+
Companies House accounts: 9 months after year end. Corporation tax payment: 9 months and 1 day. The CT600 return: 12 months. Note the order — the money is due before the return that calculates it, a sequencing quirk that catches new directors.
Do I Pay Tax On Dividends?+
Above the £500 allowance: 10.75% (basic) and 35.75% (higher) from 6 April 2026 — both raised 2 percentage points at the Autumn Budget 2025 — with the additional rate unchanged at 39.35%. Dividends sit on top of your other income, so a salary can push your dividends into a higher band. Order of income matters — and it's optimizable.
What Is A Directors' Loan And Why Does HMRC Care?+
Money you take from your company that isn't salary or dividend. If it's still outstanding nine months after year end, the company pays a 33.75% holding charge (s455) until it's repaid. Casual withdrawals become expensive precisely because they feel free.
What Is IR35?+
Rules that tax you as an employee if your contract-through-a-company arrangement looks like disguised employment. Medium and large clients decide your status; get it wrong and the tax bill travels with interest. Contract terms and working practices both matter — we review both.
How Much Is Capital Gains Tax In The UK?+
After the 30 October 2024 Budget, gains are taxed at 18% within your remaining basic-rate band and 24% above it, for almost all assets including shares and property. The annual exempt amount is just £3,000 for 2026/27 — down from £12,300 three years earlier, pulling far more disposals into charge.
How Can I Legally Reduce My Capital Gains Tax?+
Use both spouses' annual exempt amounts, harvest gains across two tax years, offset capital losses (including those carried forward), transfer assets between spouses before sale, and check whether Business Asset Disposal Relief (a 14% rate in 2025/26, rising to 18% from April 2026) applies. Each has strict conditions — that's the engagement.
How Is Cryptocurrency Taxed In The UK?+
HMRC treats crypto as an asset, not currency, so every disposal is a capital gains event — selling for cash, swapping one token for another, or spending it on goods all count. Gains above the £3,000 allowance are taxed at 18%/24%. Staking, mining and some airdrops can be income instead, taxed at your marginal rate — the income-versus-capital line is where mistakes get expensive.
How Much Is Inheritance Tax In The UK?+
40% on the estate above the £325,000 nil-rate band, plus a £175,000 residence nil-rate band when a home passes to direct descendants. A surviving spouse inherits the unused bands, so a married couple can pass up to £1 million tax-free. Leaving 10%+ to charity cuts the rate to 36%; gifts to a spouse are wholly exempt.
How Does The R&D Tax Credit Work Now?+
For periods from April 2024 most companies use the merged RDEC scheme — a 20% above-the-line credit worth roughly 15% of qualifying spend after tax. Loss-making R&D-intensive SMEs (over 30% of spend on R&D) get a more generous route worth up to ~27%. Claims now need an Additional Information Form and face intense HMRC scrutiny, so what qualifies must be documented carefully.
How Much Is Stamp Duty In The UK?+
In England & NI from 1 April 2025: 0% up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above. So a £450,000 home costs £12,500 in SDLT. First-time buyers pay nothing up to £300,000; additional properties add a 5% surcharge on the whole price.
Do First-Time Buyers Pay Stamp Duty?+
Not on the first £300,000, then 5% between £300,000 and £500,000 — provided the price is £500,000 or less. Above £500,000 the relief is lost entirely and standard rates apply. Scotland and Wales have their own first-time-buyer rules under LBTT and LTT.
