For any business, knowing when it will start making a profit is crucial. The profit breakeven point is the moment where revenue covers all costs-meaning you're no longer losing money, but you're not making a profit yet either. Understanding this point helps business owners make informed decisions about pricing, sales targets, and cost management.Why Is…
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Tax Diary February/March 2025
1 February 2025 - Due date for Corporation Tax payable for the year ended 30 April 2024.19 February 2025 - PAYE and NIC deductions due for month ended 5 February 2025. (If you pay your tax electronically the due date is 22 February 2025)19 February 2025 - Filing deadline for the CIS300 monthly return for…
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Self-employed must report profits on tax year basis
Big changes are here for the self-employed! From 2024-25, profits must align with the tax year, replacing the old "current year basis." Overlap relief is ending, and transition profits will be spread over five years. Here's how the new system affects your tax bill.The reform to the self-employed tax basis period has introduced significant changes…
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Claiming VAT on pre-registration purchases
Businesses can reclaim VAT on pre-registration expenses if they relate to taxable supplies made after VAT registration. The rules differ for goods and services, with time limits of 4 years for goods and 6 months for services. Proper understanding ensures you don't miss out.VAT can only be reclaimed if the pre-registration costs relate to taxable…
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