Non-UK domiciled individuals tax changes
Tax Changes For Non-UK Domiciled Individuals The UK is making some major modifications to how non-UK domiciled individuals (generally referred to as “non-doms“) are taxed. From 6 April 2025, These changes are aimed at creating a fairer and more modern tax system while still keeping the UK attractive for global talent and investment. Here’s at Taxaccolega, what our clients and readers need to realise if you’re affected and understanding the new UK tax rules for non-UK domiciled individuals. Table of Contents A New 4-Year Tax-Free Rule for new Arrivals Temporary Repatriation Facility (TRF): A second risk Capital gains Tax Rebasing Remote places Workday relief (OWR): nevertheless, Going strong Inheritance Tax (IHT) Expenses for Travel to UK for Work New PAYE rules for Global Employees What Should You Do Now? A New 4-Year Tax-Free Rule for new Arrivals Who Qualifies? If you’re new to United Kingdom and haven’t been resident within the previous 10 tax years you’re in good fortune. What you get: 100% UK tax comfort on all eligible overseas income and gains (FIG) for your first 4 years within the UK. No remittance regulations: You can keep that money outside the UK or bring it in either way it’s tax-free during those 4 years. Contact Taxaccolega for non-domiciled status. Temporary Repatriation Facility (TRF): A second risk If you’ve been the usage of the remittance basis then there’s a new option but before that what you need to do is get expert advice on non-domiciled tax planning 2025. Contact us and we will ensure compliance with new non-domiciled tax rules in 2025. ● You can bring in foreign income before 6 April 2025 and pay a lower tax rate. ● Pay just 12% tax within the first two years, and 15% in the third ● This option is called the Temporary Repatriation Facility (TRF) and is available for 3 years starting in April 2025. ● That is a first-rate opportunity for people with ancient offshore earnings to clean up their United Kingdom tax role at a significantly decreased fee. Capital gains Tax Rebasing: For disposals of foreign assets on or after 6 April 2025, individuals who’ve now not been United Kingdom domiciled or deemed domiciled before this date and feature claimed the remittance basis for as a minimum one of the tax years from 2017/18 to 2024/25 can choose to rebase the asset to its value as of 5 April 2017, for Capital gains Tax purposes. Remote places Workday relief (OWR): nevertheless, Going strong OWR isn’t going everywhere but it’s being refreshed beneath the brand new system: ● Available for the first 4 years of UK tax residence (if eligible under the new FIG regime) ● Applies to overseas employment income earned distant places ● You can bring that income into the UK later with no extra tax. ● However now, there’s a cap you can only claim on the lower of £300,000 or 30% of your qualifying work income each year. Inheritance Tax (IHT): The government is also replacing the domicile-based Inheritance Tax (IHT) rules with a residence-based system, from 6 April 2025: ● You’ll be concern to UK IHT on global assets in case you’ve been UK resident for 10 out of the last 20 years Expenses for Travel to UK for Work If you’re a non-resident coming to the UK for work, you can claim expenses related to your UK duties: ● Non UK residents: claim for up to 5 years ● Non UK residents: claim for up to 4 years New PAYE rules for Global Employees ● From April 2025, employers will no longer apply to HMRC to reduce the income they use for UK tax (PAYE) for some international employees. ● Instead, employers will send a simple online form to HMRC to say how much income should be taxed. ● This makes things quicker and easier for both employees and companies. What Should You Do Now? At Taxaccolega, our expert team is here to guide you through the changes and help you prepare. We’ll work with you to make sure you’re compliant, tax-efficient, and ready for the new regime. 📞 Contact us today to discuss how the upcoming reforms may impact you or your clients. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Accountants in Croydon
Accountants in Croydon Why do I need an accountant ? You need an accountant not only because they will do your accounts but having an accountant who is dependable can actually make your life easy. If you are self employed If you run your own business as a self employed person you have certain legal responsibilities related to accounting and the taxes which you have to fulfill within the deadlines otherwise you will have to bear certain penalties. You can hire an accountant to do these duties for you so you can focus more on running and expanding your business rather than being stuck in the accounting things which can be outsourced. If you hire an accountant they can take care of the following duties : ● Registering you as a self employed ● Registering your business for VAT if you have to ● Submitting your tax return annually ● Submitting VAT returns quarterly (in case you are VAT registered) We at Taxaccolega have accountants who will give you accounting and taxation advice after understanding your business. We understand that every business is unique and therefore the accounting advice for one business might not be right for the other business. An accountant will help you minimize your tax liabilities by claiming all the possible allowable expenses that can be deducted from your income while coming to the profit figure. You will also need advice from your accountant on how you can withdraw money from your business. If you are self employed you can withdraw money as dividends, you can also withdraw money as director loans. However, an accountant can tell you which method would be most tax efficient. If you run your business as limited liability company If you run your business as a limited liability company you have some added legal responsibilities: ● You will have to register for corporation tax when you start doing your business ●Prepare and file your company tax return. You will have to prepare your annual accounts and pay the corporation tax bill, your accountant can prepare the annual accounts for you. An accountant will help you with all the book keeping, they will manage your payroll and they will also advise you all on the other taxes such as capital gains tax, inheritance tax, property taxes. They will also guide you on different relief available such as business property relief which can reduce the inheritance tax bill in the future. You do not need an accountant while you are running your business, the best time to hire an accountant is before you start your business. Although you have to pay your accountant which will add to your costs, the good news is that it is an allowable expense and you can deduct it from your income. When you hire an accountant before you start your business, an accountant can advise you on the most tax efficient structure, which depends on your individual circumstances. They will also prepare and advise you on the cash flow forecasts so you can adopt the best business strategy. If you are running a business or thinking of running a business you can contact Taxaccolega accountants in croydon and they will advise you on the possible ways to run your business in the most tax efficient way. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Should I take the directors loan? And how should I treat them in my accounts
Should I take the directors loan And how should I treat the in my accounts What is a Director’s loan? In simple words the directors loan is a loan that a director takes from its company (which is a separate legal entity). Since it is a “loan” the director has to return it to the company therefore a directors loan would be any money that the director is taking out from the company for personal use. It is not the salary, a dividend or an expense repayment. This also has nothing to do with the money you have previously paid into or loaned the company. Why would I need to take a Loan from my Company? You might have to borrow money from your company to cover your personal expenses. These could be any one off unexpected bills which could not be covered by the salary the company pays you and you were also not able to get any dividend since the company did not make any profits. However, if your company has enough liquid cash you might be able to borrow money from the company. This will be treated as a loan to the director and you will have to pay interest on it. This interest can be the market rate or it can be lower than the market rate depending on how things are settled between you and the company, Directors should not borrow money on a regular basis as this comes with additional administrative work and also there are risks associated with it such as penalty costs if not paid on time. How Much Loan can I borrow from a company? You can borrow as much as your company can afford to lend. Although there is no legal limit, you would not want to borrow all the liquid cash from your company and exhaust its funds as this will create cash flow problems for the company. Furthermore, there is a threshold of £10 000. If you borrow more than £10, 000 then it is treated as benefit in kind and the company will have to pay National Insurance on it. As a director you will have to report it in the self assessment tax return and pay taxes on it. When Should I Repay The Loan? The loan should be paid within 9 months of the corporation tax period. Corporation Tax will be charged on any unpaid loan at that time. How much interest will be charged on the loan ? It is upto the company as to how much interest they will charge on the loan. If the interest charged on the loan is below the market value then the difference will be treated as a benefit in kind and tax and National Insurance will be paid accordingly. How and why Should I keep a record of the Directors Loan? As part of your bookkeeping process you should maintain a directors loan account. In the directors loan account you should record all the money borrowed from the director or the money lent to the director. You should have a proper record of the money borrowed from the company or money given to the company as a loan from the director because at the end of the financial year you will have to include in the balance sheet any money the director owes to the company (overdrawn) or if the company owes to the director (credit) For more information on Directors’ loans and how they will be treated in your accounts please contact Taxaccolega at 020 8127 078 and our team of accountants will be happy to help you. We will guide you on your personal taxes, corporation tax and your payroll. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Selling on Amazon – Things I should know if I am selling as a sole trader or a limited company
Selling on Amazon – Things I should know if I am selling as a sole trader or a limited company The way you run your business online depends on how big the business is. If you are not trading on a regular basis then it might be just convenient and tax efficient to register yourself as a sole trader to run your online business. However, if your business is widespread or it’s just a start but you expect your business to expand then working as a limited company right from the start might be a good option. Every individual situation is different, every person starting a new business has different circumstances and therefore not one business structure would suit all even if you are running the same size of business. Let’s look at the following points which you should know once you have decided to start your business online. Costs of Registering the business: If you chose to work as a sole trader you just have to register for a self assessment tax return if you are earning more than £1000 per year. You do not pay anything for registering. You just pay your taxes by 31 Jan of the following year, you will have to fill in your tax return and HMRC will calculate the taxes for you. Whereas, if you want to incorporate your business you have to choose a name and register your business with the Company’s house. The registration fee is around £12 and the process is not that complicated. You can even hire an accountant to do this for you. Registering for taxes: You will have to pay taxes when your business is making profits but you have to register yourself to let HMRC know that you are doing a business and you have to submit your returns (incase you are a sole trader) or annual accounts (if you are a registered business) even if you are making a loss. You will have to register for self-employment by 5th October in your business’s second tax year. You can be fined if you don’t do it on time. If you are an incorporated business, you can register for corporation tax at the same time as when you register the business with the company’s house. Otherwise you can do it at any time within 3 months of starting your business. Registering for VAT You will have to register for VAT as soon as you meet the registration requirements for VAT. It won’t matter if you are running the business as a sole trader or as a limited company . Taxes If you are starting to sell online as a side business while you are already employed in a company you should note that you might be using all your personal allowance so any profits that you will make from your online business you will have to pay personal taxes on it. If you are not employed anywhere then you can earn upto £12, 570 tax free if you are a sole trader. If you run a company you will be paying tax on all your profits but the rate you pay is less than the personal tax. An accountant can help you with the evaluation of your situation and conclude what business structure will work for you. Please contact Taxaccolega, e-commerce accountants in Croydon and we will be happy to help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *