Accounting Resources

As of April 2025, furnished holiday lettings (FHLs) no longer benefit from their previous tax advantages and are now taxed like standard residential rental properties in the UK. Landlords can no longer claim upfront capital allowances, and mortgage interest relief is limited to a 20% basic rate tax credit. Pension contributions can’t be deducted from rental income, and the cost of furniture can only be claimed when items are replaced. Capital Gains Tax reliefs, including Business Asset Disposal Relief and rollover relief, have also been withdrawn, potentially increasing tax liabilities when selling a property. These changes significantly impact the profitability of holiday lets and should be factored into future tax planning. Holiday property owners must ensure they’re fully up to date with the new FHL tax rules now in effect.

Working through an umbrella company is common for UK contractors and agency workers, but it’s important to understand how they operate. Let's consider what umbrella companies are, how PAYE and tax compliance work, and what warning signs to watch out for. Stay informed to protect your pay, rights, and avoid unexpected tax liabilities.

Each tax year, UK individuals benefit from a Capital Gains Tax (CGT) annual exemption – a valuable allowance that enables gains up to a certain threshold to be made free of tax. However, with recent reductions in this exemption, it’s more important than ever to make the most of it.

It’s not uncommon for directors of small companies — particularly those with a background in self-employment — to blur the lines between business and personal finances. However, it’s essential to remember that a limited company is a separate legal entity, and treating company funds as a personal wallet can lead to unexpected tax consequences.

Recent developments have brought notable changes to Capital Gains Tax (CGT), with significant shifts in 2024 and more on the horizon. With the Labour government having recently passed a Budget and a Spring Statement on the way, now is a good time to assess where we stand with CGT in early 2025.

In this blog post, we review the recent case of Robson v Revenue and Customs on employment status, highlighting valuable lessons for businesses and contractors engaging in similar arrangements.

As the tax year-end (5 April) approaches, now is the perfect time to review your finances and make sure you’re making the most of available tax reliefs. A few simple steps could help you save money and ensure your tax affairs are in the best possible shape.

Employment Allowance (EA) is a valuable relief available to eligible employers in the UK, allowing them to reduce their annual National Insurance (NI) liability by up to £5,000. This initiative helps businesses manage employment costs and encourages job creation. Understanding whether you qualify and how to claim this allowance can lead to significant savings for your business.

For many small business owners, incorporating their business once made sense for tax efficiency and limited liability. However, with recent tax changes, some owner-managed businesses may now find that reverting to a sole trader or partnership structure is more beneficial. Disincorporation is not as straightforward as incorporation, and business owners must carefully consider the tax and legal implications. This article explores the key practicalities of disincorporating a business, providing insights and examples to help you navigate this complex decision.