In the UK around 45 million people regularly play the lottery. Although the vast majority of them have never won anything, there are still some lucky ones who have won big prizes. One lottery player won a £195 million lottery jackpot, breaking the record for the highest lottery prize ever won. What can £195 million buy? This amount of money could buy 11 Boeing 747 airplanes, 23 Pisces-VI submarines, or even multiple luxury townhouses near Southampton Football Club or London’s Mayfair! 1. How have winners spent their money? Colin and Chris Weir from Largs, North Ayrshire, broke records in July 2011 by becoming the largest lottery winners in the UK at that time. Colin invested £2.5 million in his beloved Partick Thistle Football Club, naming one of the stands at the stadium after himself. He later acquired a 55% stake in the club, which was eventually transferred to the local community after his passing. The couple also established the Weir Charitable Trust in 2013 and donated £1 million for the Scottish independence referendum in 2014. Adrian and Gillian Bayford won €190 million in the EuroMillions lottery draw in August 2012, amounting to just over £148 million. According to the Mirror, the couple purchased a Grade-II listed property in Cambridgeshire, complete with a luxury cinema and snooker room, but it was sold a few years after their divorce. Former social worker and teacher Frances and her husband established two charitable foundations after winning nearly £115 million on New Year’s Day in 2019. It has been reported that she has donated £60 million to charitable causes as well as to friends and family. 2. Do taxes need to be paid on lottery winnings? The answer is quite simple, no. In the UK, lottery winnings are not considered taxable income.  However, income tax must be paid. Once you deposit the money into the bank, it will inevitably start accruing interest. Since this interest is not part of the original windfall, income tax is paid on the interest – this is personal income tax. Although questions have been raised over whether the interest earned is simply part of the original earnings, HMRC has never provided a definitive answer. Additionally, inheritance tax must also be paid. In the UK, if the value of an estate exceeds £325,000, inheritance tax is due. So, if the winnings are passed down as inheritance, then the inheritance tax rate of 40% is applicable. What if the winner gifts the money to someone before their death? It is possible to gift up to £3,000 per year to others tax-free, and this amount is not added to the estate. Moreover, if the previous year’s tax-free allowance hasn’t been used, it can be carried forward for one year, allowing a total tax-free allowance of £6,000 for the next year. Furthermore, HMRC stipulates that when money or assets are gifted, they remain part of the estate for seven years after the gift is made. This means if the winner gifts the money to a relative or friend and passes away within seven years, the money will still be considered part of the estate, and the recipient will be liable to pay tax on the gifted amount. For example, let’s say A wins a lottery and wishes to gift £50,000 to his son. Since A has a tax-free allowance of £6,000 (not gifted to anyone in the previous year), £44,000 remains part of A’s estate in the year A gifts the money to his son. If A unfortunately passes away two years later, his son would need to pay inheritance tax on the £44,000.  However, if A passes away after ten years, the gift has surpassed the seven-year period and is no longer part of A’s estate, so his son wouldn’t need to pay any tax on it. 3. When is inheritance tax due? HMRC stipulates that the executors of an estate must pay within six months after the individual’s death. If payment is not made within this timeframe, HMRC will begin to charge interest. Additionally, executors can opt to pay tax on certain assets, such as property, in instalments over ten years. However, any unpaid tax will still accrue interest. If any assets are sold before all personal income tax is paid, executors must ensure that all instalments and interest are paid at that time. If your estate incurs personal income tax, it’s advisable for the executors to make partial payments within the first six months after death, even if they haven’t completed the valuation of the estate. This will help reduce the interest the estate may generate. If the executors or administrators pay tax from their own accounts, they can reclaim it from the estate. If personal income tax is overpaid during the probate process, HMRC will refund the estate. Remember, if appointed as an executor or administrator of an estate, it’s necessary to complete and submit an estate account within one year after the deceased’s death to avoid penalties. 4. Planning ahead Perhaps you haven’t won the lottery, but you may have other assets you would like to pass on.  What is the most tax-efficient way to do this? Giving Gifts While Alive Gifts during one’s lifetime can reduce some expenses: Annual exemption – Each person can gift up to £3,000 worth of gifts in each tax year without it being added to your estate’s value. If you haven’t used last year’s exemption, it carries over to this year, making your annual exemption total £6,000 Wedding or civil ceremony gifts – In addition to the annual exemption, you can leave wedding or civil ceremony gifts of up to £1,000 per person. If it’s for grandchildren or great-grandchildren, this amount increases to £2,500; if it’s for children, it’s £5,000 Small gifts exemption – Provided you haven’t used any other exemption on the same person, you can also give gifts worth up to £250 to any number of people in each tax year Taking this into consideration when drafting a will is crucial. If your estate’s value exceeds £325,000, giving money while you’re alive may be more tax-efficient. However, it’s essential that gifts are made outright, or they may not achieve the intended tax effect. For example, if you transfer property to your children but continue to live there and benefit from it, the gift may not qualify for exemption. Leaving Money to Charity in a Will Anything left to a charity is exempt from inheritance tax. If you leave an estate worth £350,000, including a £30,000 charitable donation, no inheritance tax is due. This is because your taxable estate value would be calculated as £320,000 (£350,000 minus £30,000), which is below the £325,000 inheritance tax threshold. Furthermore, you can also reduce your inheritance tax rate by leaving over 10% of your net estate to charity. Putting Pensions and Life Insurance Policies into Trusts Pensions and life insurance policies can be great ways to minimise tax bills. Trusts may be needed for both types of policies, often meaning any payouts won’t form part of your estate but will go directly to your beneficiaries, without incurring inheritance tax. Leaving Everything to Your Spouse If you’re married or in a civil partnership and your partner is domiciled in the UK, regardless of the value of your estate, they won’t have to pay inheritance tax on what you leave them. Married couples and civil partners can also pass on their unused exemptions to their partners, significantly increasing their partner’s exemption allowance. Leaving the House to Your Children In April 2017, a ‘main residence’ nil-rate band was created. If homeowners leave their homes to children, stepchildren, or grandchildren—or their spouses or civil partners—they can get an additional £175,000 of the nil-rate band allowance. If you have any questions about inheritance tax, contact TB Accountants. Our professional accountants can discuss and help you plan ahead for inheritance tax. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

The British property market has always been favoured by investors both in the UK and across the world, with many taking part in the buy-to-let market.  Due to the impact of the pandemic, the rental market experienced a period of cooling for two years. However, this situation only lasted until the 2021 fiscal year. At the beginning of that year, the UK rental market underwent a transformation and started booming again. The latest report from the Royal Institution of Chartered Surveyors (RICS) shows that there has been steady monthly growth in tenant housing demand since November last year, while the supply of properties available from landlords has been gradually declining. From early 2022, there has been an imbalance between the supply and demand in the UK’s private rental sector, leading to continuous rent increases. Data shows that by August 2022, private rental prices in England increased by 3.4%, marking the largest annual growth rate since January 2016. Additionally, Wales saw an increase of 2.5%, and Scotland saw an increase of 3.6%. Although rental prices in London have been recovering somewhat slowly, there has been a noticeable uptick. By August 2022, private rental prices in London had increased by 2.5%, marking the strongest annual growth in London since October 2016. With an increasing number of new tenants, now may be the best time for landlords to enter the real estate market, as high rental demand can provide good investment returns. If you are a first-time landlord entering the buy-to-let market, there are some strict tax rules you may need to be aware of. For example, did you know that the rent you receive each month is actually considered as income, and HMRC will require you to pay income tax?  The higher your rental income, the higher your overall income, and the more tax you’ll have to pay. 1. What taxes need to be paid by landlords? The only tax that private landlords need to pay on rental income is income tax. Within the industry, some refer to it as ‘landlord income tax’, ‘buy-to-let income tax’, ‘property income tax’, amongst many other terms. It’s worth noting that you only need to pay tax on the net rent – that is, your actual profit. The calculation of profit involves adding together all rental income received from different properties and then subtracting any allowances, reliefs, or allowable expenses, resulting in the final profit figure. Different rules apply if you are: Renting out a room in your home Renting out furnished holiday lettings Renting out foreign properties Renting out UK properties whilst residing abroad 2. What counts as rental income? Rental income is primary the rent received for leasing the property, but also includes any other payments collected for services provided by the landlord.  This can include: The cleaning of common areas Utility bills – including hot water, heating, broadband, and water charges Property maintenance If you collect a non-refundable deposit on the property, this also counts as rental income. Any money retained from the refundable deposit at the end of the tenancy is also counted as rental income. For example: A landlord charges £750 per month in rent, including bills, which must be reported as income in its entirety. If, at the end of the lease, the tenant agrees to forfeit a £500 deposit to cover property maintenance costs, this is counted as rental income. So, although the rent for the year is £9,000, the landlord must declare income of £9,500. However, the landlord can still deduct the £500 maintenance fee they paid as an expense. 3. What is the tax rate for rental income? The income tax rates and thresholds for your rental income are the same as those for your personal income tax rates and thresholds, which at the time of writing are 0%, 20%, 40%, or 45%. However, adding your net rental income to any other income you receive (e.g. from employment) may push you over your usual tax threshold into a new, higher bracket. So, how do you calculate the tax rate after calculating your rental profit? Firstly, if you’re not a full-time landlord and you have a salary, you’ll need to calculate your annual salary to determine your personal income tax bracket. Secondly, subtract your property allowances or allowable expenses from your total rental income to show your net rental income (i.e. profit). Thirdly, add your salary, net rental income, and any other remaining net income together to determine your income tax bracket. Here’s an example: Your salary is £40,000 You also receive £20,000 in rental income You deduct £5,000 in expenses from the rental income, leaving you with a net rental income of £15,000 These are your only sources of income. You add your salary and net rental income together to find your income tax bracket: £40,000 + £15,000 = £55,000 So, you fall into the higher tax bracket. You’ll pay: 0% on the first £12,570 = £0 20% on the portion between £12,570 and £50,270 = £7,540 40% on the remaining £4,730 over £50,270 = £1,892 Total income tax, including tax on rental income = £9,432 4. What are the deductible expenses? Deductible expenses refer to costs that, as mentioned above, you have incurred solely and exclusively for the purpose of renting out your property.  These can be deducted from your rental income when calculating your taxable profit. General maintenance and repairs of the property, but not including renovations Water rates, council tax, gas, and electricity Insurance, such as landlord’s building, property, and public liability insurance Service charges, including wages for gardeners and cleaners Letting agent and management fees Legal fees for leases of a year or less or for renewals of up to 50 years Accountant’s fees Rent (if you’re a sub-landlord), ground rent, and service charges Direct costs such as telephone, stationery, and advertising costs for new tenants Vehicle running costs (only for the portion used for the rental business), including mileage deductions for business driving expenses. Expenses that are not deductible include: Your entire mortgage payments – only the interest portion of your mortgage payments can be offset against income Private telephone bills – you can only claim for phone bills related to your property rental business Clothing – for example, if you buy a suit to attend meetings related to your property rental business, you cannot claim this expense. HMRC may consider that part of wearing the suit is for your rental business, while another part is for warmth Personal expenses – you cannot claim for any expenses incurred that are not entirely for your property rental business 5. How should landlords pay the tax owed? How the tax is paid depends on the total amount of rental income received. In the UK, how you pay tax depends on the amount of rental income you receive. If your annual rental income is less than £1,000, you don’t need to report it to HMRC. If your annual rental income is between £1,000 and £2,500, you need to contact HMRC for further instructions. If your income is between £2,500 and £9,999 after deducting expenses, or if it exceeds £10,000 before deducting allowable expenses, then you need to register with HMRC and complete a tax return including your rental income as part of your annual self-assessment. It’s important to note that landlords pay the tax on rental income by filling out a self-assessment tax return, which needs to be done each tax year. HMRC uses these figures to determine how much tax you owe. Therefore, when completing your tax return for buy-to-let properties, you must keep receipts for any work done on your property to claim any expenses. Landlords have two options for completing self-assessment: doing it themselves, or hiring an accountant to represent them. Calculating rental income and allowable expenses can be complex, especially for landlords with multiple rental properties, which can easily become confusing. Additionally, HMRC offers various allowances and policies, and different properties may have different saving methods. Therefore, we strongly recommend that landlords use an accountant to help plan their taxes to provide peace of mind. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

After the passing of the Queen, Prince Harry’s decision to pay respects to his late mother sparked numerous controversies.  Prince Harry, Duke of Sussex, who previously served in the military, was a former member of the British royal family, being the second son of King Charles III and the late Princess Diana. Originally, the public show of unity had led the public to believe in a possibility of reconciliation, which never materialised.  What happened next? 1. Harry and Meghan Under the scrutiny of global attention, the series documentary ‘Harry and Meghan’ produced by Netflix, aired in December. With the release of the documentary, Harry and Meghan became the focus of global media attention, and consequently, their £11.5 million mansion in the United States was also brought to light. Believe it or not, their mansion could be subject to £103 million in council tax. How come? It is understood that after resigning from senior royal duties in 2020 and moving to the United States, Meghan Markle and Prince Harry decided to reside in the California mansion in Montecito. Their house is a 19,000-square-foot Mediterranean-style property with nine bedrooms, thirteen bathrooms, dubbed the ‘castle of the rich’ by locals. 2. Their mansion Experts suggest that this Tuscan-style mansion is now valued at around £19.4 million.  Located 80 miles north of Los Angeles, it features a library, gym, cinema, spa, swimming pool, tennis court, guest house, and a playground for Harry and Meghan’s two children, Archie and eight-month-old Lilibet. The tax Harry and Meghan need to pay is calculated based on the local property value. The previous owner of this mansion, Sergey Grishin, a Russian businessman, paid £17 million in council tax for this property ten years ago. The more expensive your property, the higher the amount of tax you pay. If this were happening in the UK, how much tax would be owed? 3. Council Tax in the UK Council Tax is the only local tax in the UK, which is equivalent to an annual fee paid to the local council, and is used to fund local services.  Typically, it is paid in ten monthly instalments. How much tax you pay depends on: Your personal circumstances The ‘band’ your home falls into – based on property value How much funding the council needs for its services What does Council Tax pay for? Local services are funded by council taxes, including: Police and fire departments Leisure and recreation facilities, such as maintaining parks and sports centres Libraries and educational services Waste collection and disposal/recycling Transportation and road services such as street lighting and cleaning, road maintenance, environmental health, and trading standards enforcement Administration and record keeping for marriages, deaths, and births, as well as local elections Note that council tax is not used to pay for healthcare services, which are funded at the national level. How much is my Council Tax? Your household’s Council Tax ‘band’ is based on its assessed value—the more expensive the property, the higher the band. In England and Scotland there are eight bands: A (lowest) to H (highest) In Wales there are nine bands: 1 (highest) to 9 (lowest) If your property is in a higher band than it should be, you might be paying more tax than you should.  If you believe you’ve overpaid  because your property is in the wrong  band, you may be entitled to a refund. How can I save on Council Tax? If you fall into any of the following categories, you may be eligible for discounts on your council tax: Low income A student, or you live with a student Living alone or the only adult in the household Receiving employment benefits, such as Jobseeker’s Allowance, Income Support, Pension Credit, Job and Support Allowance, and Universal Credit Living with someone who has a disability, requiring a larger home Severe mental illness, or living with a person with a mental illness Carers in Scotland aged 18-26 You are living in a care home or hospital In prison (unless you are serving a sentence for non-payment of Council Tax) What happens if I don’t pay on time? If you miss a payment, even if it’s just a monthly payment, the consequences can be quite severe. If you don’t act promptly, you may be asked to pay the entire year’s amount upfront. Therefore, it’s crucial to get in touch with your local council as soon as you suspect that you might have missed a payment.  If you don’t deal with your council tax debt, it can quickly become a serious problem. For example, if your tax is £167 per month but you missed the first payment of the year, you’ll have a possible debt of £1670. Two weeks after you miss a payment, you’ll receive a reminder from your local council. If you pay within seven days, you don’t need to do anything else. The debt will be cleared, and you’ll be able to continue paying your council tax in instalments. If you don’t pay within seven days of the reminder, or this is your third missed payment of council tax for the year, the council will send you a final notice. The final notice will demand that you to pay all  the tax for the remainder of the year within seven days. If you don’t pay within seven days of the final notice, your council will usually apply for permission to recover the debt from you. Your council can then request your employer to deduct the unpaid council tax directly from your wages. They can also apply to deduct money from certain benefits, including: Employment and Support Allowance Jobseeker’s Allowance Pension Credit Universal Credit If the deductions cannot be made, your council may send a bailiff (sheriff in Scotland) to your home. You’ll have to pay their fees, as well as your debt, which could add hundreds of pounds to your bill.  In severe cases, you may also be subject to criminal prosecution and a prison sentence. TB Accountants would like to remind everyone that it’s important to stay up to date with your tax liabilities, including Council Tax.  Stay tuned to our newsletters for further news and updates! For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

If you’re living and working in the UK, or you sell online to UK-based customers, you may have encountered situations where HMRC request an audit of your finances. Sometimes, due to a misunderstanding or inadvertent negligence, even if you have filed your taxes on time and accurately, you may still be subject to an audit.  Many audits are routine procedures that are not necessarily triggered by a specific event. In other circumstances, you may have indeed made a mistake by accident, which could have been corrected immediately.   If you had forgotten to respond to HMRC’s correspondence within the specified time frame, HMRC may choose to take action without further warning. In this article, we’ll cover three different previous situations where TB Accountants has helped our clients in relation to audits of their tax affairs. 1. VAT assessments One client (A) recently received a letter from HMRC on the 11th January 2024 to inform them that an audit had concluded that due to exceeding the VAT registration threshold, their business was required to pay an estimated £37,810 in taxes, along with an interest penalty of £5,105.47. The total amount requested by HMRC was £42,915.47! A then got in touch with TB Accountants, and we analysed their specific situation.  After negotiating with HMRC, the tax authority accepted that A had not actually violated the VAT registration requirements, meaning that the tax due was reduced to £86. This reduced M’s tax liability by £42,829.47! 2. Amazon seller account suspension On the 26th January 2024, another client (B) received a letter from HMRC to inform them that their UK VAT registration had been deregistered.  As a result, their Amazon UK store was also suspended due to the lack of a valid VAT number. The reason for the deregistration was that B had not responded to a previous postal notice from HMRC in a timely manner – the tax authority had asked B to provide evidence of trading as part of a routine audit of businesses believed to be inactive. Given this situation, B promptly contacted TB Accountants. On the 9th February 2024, TB Accountants began organising the relevant appeal documents for submission and began communicating with HMRC.  Within 10 working days, B’s UK VAT registration was successfully reactivated, and their Amazon UK store reopened. 3. Tax refund audit Did you know that if you file a tax refund request as part of your routine tax filings, it can result in an audit, even if the refund amount is genuine? Another client (C) recently received an audit letter from HMRC due to a large refund amount filed in their tax return. On the 22nd November 2023, HMRC sent a letter to inform C that they would conduct an audit of their September 2023 VAT declaration, due to a substantial refund request that had been submitted as part of the declaration.  This audit started on the 7th December. HMRC believed that C had filed their September 2023 VAT declaration using a lower rate of VAT (compared to the standard 20% rate).  Usually, a lower VAT rate would mean that input tax cannot be used to offset the tax liability.  HMRC therefore decided to reject C’s refund request. C immediately contacted TB Accountants for assistance, and we promptly started investigating their case and compiling the necessary documents to submit an appeal.  On the 11th January 2024, HMRC agreed with the appeal and refunded the amount originally requested. As we mentioned above, HMRC can conduct routine audits, even without a specific event that warrants investigation.  Maintaining good records of your business transactions and finances can therefore be crucial to preventing issues such as additional taxes and fines resulting from investigations. TB Accountants has 14 years of experience in handling tax compliance issues.  If you have any questions regarding tax audits, or any other issues, please get in touch with us for more advice. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

You may have heard of the internet sensation ‘Salt Bae’, who opened the restaurant Nusr-Et in Knightsbridge back in September 2021.  The restaurant quickly became known for its extravagance and extremely high pricing. Despite this, the restaurant recently announced that it would be turning off its heating to save on operating costs! 1. Rise to fame Nusr-Et, located in Knightsbridge, is famed for its expensive and over-the-top dishes.  Of course, the main credit for the sudden fame of the restaurant must go to the founder Salt Bae himself. Salt Bae’s real name is Nusret Gökçe.  Originally from Turkey, he worked as a butcher and chef before quickly becoming an online sensation in 2017 after a video posted on social media went viral.  His signature salt-sprinkling pose netted him over 48 million followers on Instagram alone. Besides from ordinary citizens, even international celebrities such as David Beckham and Leonardo DiCaprio were eager to take photos with him. That is not to mention British celebrities like Coleen Rooney and her husband Wayne, Gemma Collins, Sam Thompson, and Zara McDermott, who have all visited the restaurant to experience the hype. Along with his skyrocketing wealth, his business has also expanded into over a dozen restaurants worldwide.  Patrons go not only for food, but to see the man himself. The restaurant has also attracted its fair share of negative publicity, especially the gold-plated menu of food items.  One customer even uploaded a photo of their bill showing that four people had spent £37,000 on a single meal the restaurant. Of course, some people believe that any publicity is still good publicity, and it certainly worked out in his favour when it came to social media – the restaurant in itself became an internet sensation, with many wondering whether the food was really worth the price! 2. How much does the restaurant really make? We’ll focus on the Knightsbridge branch of Nusr-Et. According to the accounts submitted to Companies House, the restaurant’s pre-tax profits increased by 44% in 2022, reaching nearly £3.3 million.  Sales soared by nearly 66% with a turnover of £13.6 million.  As a result, Salt Bae himself received £2.7 million in dividends, up nearly £2 million from the previous year. However, despite the huge profit, it seems that the restaurant, along with many others, must adapt to changing economic winds. Due to soaring energy bills, the Knightsbridge branch announced that it would shut down all heating during non-peak periods and turn off lights during non-opening hours in an effort to save on operating costs. Besides from this, they also limited the operation of the restaurant’s ventilation system and embarked upon a renovation to install energy-saving insulation materials and LED lights across the restaurant. The extravagant menu has also been toned down – the £1450 golden steak has been replaced with a £45 burger and fries set.  In addition, guests can now also enjoy a lunch menu from Monday to Sunday between 12-5pm, which includes appetisers, main courses, and desserts for £39 per person. They also now offer a range of new ‘affordable’ sushi, priced between £23 and £28. 3. How should restaurant owners save on costs? The cost-of-living crisis has also undoubtedly affected businesses.  Even a high-end restaurant with record profits such as Nusr-Et is seeking to cut their operating costs. So, what should restaurant owners do? Analyse ingredient costs: A crucial part of running any catering business is analysing your ingredient costs to ensure that they do not exceed your budget.  You need to strike a balance between quality and cost – it may be beneficial to pick a local supplier, who are typically cheaper. Negotiate prices: Negotiating with your suppliers is fundamental to any cost-saving strategy.  Be sure to reach out to several suppliers – this will give you an edge when it comes to negotiating.  You can not only decide based on price, but also quality and reliability.  You’ll find that a lot of suppliers will be willing to lower their prices if you’re willing to cooperate with them in the long-term. Optimise your menu: Menu optimisation is another important way to reduce operating costs. However, optimizing the menu does not mean blindly reducing items, otherwise, customer satisfaction will decrease, and reducing items is equivalent to reducing profits. You can focus the menu on specific items that have been proven to be profitable and high-profit, retain these items, and then reduce some potentially unpopular ones. You can also arrange different types of dishes at different times of the week. At the same time, you can also use some restaurant menu templates to reduce costs related to menu design, printing, and materials. Planning inventory based on expected demand helps reduce food waste. Expand your online orders: Through digitisation, restaurants can eliminate manual data entry and therefore reduce labour costs associated with telephone ordering.  Using an online ordering platform outsources these costs, and also gives you access to online promotional tools, meaning that you can save further on what would otherwise be expensive print advertising and traditional marketing methods.  By utilising online ordering platforms, restaurants can better control operating expenses, making business more profitable. Save on energy costs: Installing smart meters can help you monitor energy usage and accurately identify high and low-energy periods in your business premises. Once you understand how energy is used and when, you can customise your electricity usage based on business needs, and time-of-use electricity prices can help you use electricity when it is cheaper. If you have high-energy devices that can be set to run at night, such as dishwashers, heating, and cooling systems, off-peak electricity prices at night could help you save you some costs. Low-water-use dishwashers, toilets, and faucets with air inflatable devices can also help reduce water consumption. Of course, you can learn from Salt Bae and turn off the heating system and switch to more energy-efficient equipment. Reduce taxes: Tax is a complex area that is constantly changing. Here’s where TB Accountants can step in.  Get in touch with us for a consultation, and we can discuss how best to lower your tax liabilities.  We’ll help set your business on course for maximised profitability. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

As we’ve mentioned in one of our previous articles, how much State Pension you’ll receive upon retirement depends on the amount of National Insurance (NI) contributions you’ve made.  We also talked about NI contributions can be purchased and applied retroactively to previous years. Did you know that you can also accumulate NI credits to help build up the number of qualifying years so that you can receive the full State Pension? What are National Insurance Credits? National Insurance Credits are a way to maintain your national insurance record when you are unable to pay national insurance contributions. They can help you build up “qualifying years for state pension,” which will count towards your entitlement to basic state pension and other benefits. How are National Insurance Credits obtained?       You’ll firstly need to check whether you are eligible to receive credits.  Some types of credits can be automatically applied to your record, whilst others will require an application to be made to HMRC or the relevant department. If eligible, you will receive the following types of credits: Class 1: towards the State Pension and other benefits (e.g. New Style Jobseeker’s Allowance) Class 3: towards the State Pension only Note that if you have paid NI contributions for one year (a ‘qualifying year’ for the State Pension), you can transfer the credits earned while claiming child benefit to a spouse or partner who lives with you. Who is eligible for National Insurance credits? NI credits are generally designed for circumstances where you are unable to work and pay NI contribution.  Eligibility criteria include: Currently claiming or previously claimed certain benefits due to ill health or unemployment Currently or were previously on maternity, paternity, or adoption leave Currently or were previously caring for children under 12 Currently or previously participated in approved training courses Married to or in a civil partnership with a member of the armed forces and deployed overseas with your partner Currently or previously served as a juror Served a sentence for a conviction that was later overturned These criteria are applied differently and can result in different types of NI credits being issued.  As we mentioned above, some are obtained automatically, whilst others require an application to made. For up-to-date information, you may visit the Government’s information page . Am I eligible? We’ll touch upon the most common situations where you may be eligible for NI credits. 1. Child Benefit Recipients If you are a parent aged 16 or above, currently receiving Child Benefit and caring for children under 12, you will automatically receive Class 3 credits. Additionally, grandparents and other family members aged 16 or above who are caring for children under 12 but have not reached State Pension age can also receive Class 3 credits. However, if you fall into this category, you need to fill out the CF411A form to apply for these credits. 2. Carers If you receive the Carer’s Allowance, your NI record will automatically be allocated Class 1 credits. Those receiving Income Support will also automatically receive Class 3 credits. If you do not receive Income Support but provide at least 20 hours or more of care per week for a sick or disabled person, you may be eligible for Class 3 credits but will need to make an application to HMRC. 3. Unemployed Individuals Individuals receiving Universal Credit will automatically qualify for Class 3 National Insurance Credits. If you are actively seeking employment, you may also qualify for Class 1 National Insurance Credits. If you are already receiving Jobseeker’s Allowance, these credits will be added automatically to your record. If you are unemployed and seeking work but not receiving Jobseeker’s Allowance, you need to apply for Class 1 credits through your local job centre. Participation in government-approved training courses of less than one year can also earn you Class 1 credits. 4. Illness and Disability If you are unable to work due to illness or disability and are applying for benefits such as the Employment and Support Allowance or the Unemployability Supplement, you will automatically receive NI credits. If you are eligible for these benefits but do not receive them, you can apply for Class 1 credits through your local job centre. In some cases, you may be receiving statutory sick pay, but your income is not enough to meet the qualifying years for NI. In such cases, you may be eligible for Class 1 credits. For this, you will need to contact HMRC. 5. Armed Forces Spouses/Partners Due to changes in State Pension rules requiring 35 years of contributions for the full pension, HMRC and the DWP have introduced NI credits for Armed Forces spouses. These credits can help maximise your State Pension. The basic principle of this system is that when you accompany your spouse or civil partner on overseas military service, you can apply for credits.  This process is not automatic – you need to apply for them and can only apply for periods overseas on or after the 6th April 1975. 6. Jury Service If you have served as a juror and are not self-employed, you may be eligible to apply for Class 1 credits. However, you need to submit an application to HMRC. Supplementing your State Pension Besides from these situations, if your retirement income is relatively low, you may also be able to obtain additional retirement income through other means, such as Pension Credit. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace legal or professional advice. If you have any questions, please contact TBA Group via email or WhatsApp .

You’d be hard pressed to find someone who hasn’t complained about how expensive it is to live in the UK, especially with the ongoing cost of living crisis.  In times like these, it’s essential not only to know how to save money, but also to know how to make full use of government assistance to ‘earn’ more money. In this article, we’ll introduce several different schemes which could help you out. 1. Premium Bonds Premium Bonds are an investment product issued by the state-owned savings bank National Savings and Investments (NS&I), which offers products encouraging people to save. NS&I holds a monthly lottery for bondholders, allowing people to have to change to win prizes whilst also saving money.  Savers also do not need to pay tax on any winnings.  If you want to participate, you need to invest at least £25, and the maximum investment in bonds is £50,000. For every £1 you invest, you receive a bond number. This means if you deposit £100, you’ll receive 100 bonds, and after holding the bonds for a month, you can participate in the monthly prize draw. Remember, each bond has a chance of winning a prize, so the more bonds you purchase, the higher your chances of winning. You can purchase bonds for yourself, or on behalf of your children, grandchildren, or great-grandchildren. Premium Bonds were first introduced in 1956, and around 21 million people in the UK currently own them. However, it seems that many people don’t realise that they are eligible to claim prizes. Currently, there is a total of £81 million in unclaimed prizes. These unclaimed prizes include six prizes of £100,000, one of which is registered to a bondholder in Australia. Additionally, many people have not claimed £25 small prizes, some of which date back to 1957. There is no time limit for claiming these prizes, and each prize will be held until a legitimate owner is found. However, some winners may have already passed away, in which case it becomes part of their estate.  Currently, unclaimed prizes are managed by NS&I, as many winners have not provided their addresses or any other contact details, making it impossible for the company to find them. Do you remember if you purchased any bonds? If so, you can check if you missed out using the NS&I online prize checker, as long as you know your bond numbers. 2. The Marriage Allowance HMRC regularly issues reminders for couples to take advantage of the Marriage Allowance.  The Marriage Allowance is a tax relief measure which applies to couples, where one partner’s income is below the personal allowance threshold (£13,570 in the 2023/24 tax year). The scheme allows one partner with the lower income to transfer up to 10% (currently £1260) of their personal allowance to the other.  This means that in a single tax year, the allowance can reduce tax by up to £252. It’s important to note that the tax relief is only applicable to the lower income partner if their income is below the personal allowance threshold.  An application must be made by the lower income partner online, by the self-assessment system (if a tax return is submitted), or by filling out the MATCF form and sending it back to HMRC. Eligible individuals can also backdate their application to previous tax years up to the 5th April 2019.  Their partner’s tax liabilities will then subsequently be re-adjusted accordingly. 3. Child Trust Funds Child Trust Funds were introduced first introduced in 2005 but were abolished in 2011. Over 6.3 million parents in the UK opened Child Trust Funds for their children, locking away billions of pounds. These funds are accessible by their children once they turn 18.  In 2020, the funds began to mature, and this will continue until January 2029. However, many of these accounts have been forgotten. This means many young people are unaware they have money waiting for them. Additionally, some parents may have forgotten about their child’s fund, perhaps after moving. Last year, it was reported that there could be over 900,000 unclaimed Child Trust Funds, totalling over £1.7 billion. The good news is that the charity Share Foundation has been working with the government to help young people find their accounts.  They provide a free tracing service which can be accessed at findctf.sharefound.org , where you can then fill out a simple form with the relevant information. Additionally, HMRC has also released an online tool to help young people locate their accounts. 4. Attendance Allowance If you have reached State Pension age and also have a physical or mental disability, or need care due to these conditions, you can apply for the Attendance Allowance. The Attendance Allowance is paid weekly at two different rates, depending on how much help you need, up to a maximum of £5,306 per year. Depending on the level of care required, you can receive the lower rate of £68.10 or the higher rate of £101.75, both of which are tax-free. The Attendance Allowance is not means-tested, and other factors such as household members are not taken into account.  Even if you live in a care home and pay for care yourself, you can still be eligible. However, it seems many people are unaware of this benefit. In December, a report from Policy in Practice and MoneySavingExpert.com stated that every year, 1.1 million families who are eligible for pension age miss out on £5.2 billion of care allowances. To apply, you can call the dedicated helpline (0800 731 0122) to request a form and return the form by post. 5. Child Benefit Child Benefit is a payment parents can claim for their children, usually paid every four weeks, sometimes weekly. If you are eligible, the first child can receive £24 per week, and subsequent children can receive £15.90 per week.  As of the 6th April 2024, if you or your partner’s individual income is below £60,000 per year, any Child Benefit received is tax-free.  The previous threshold was £50,000. If you or your partner’s income exceeds the threshold, applying for Child Benefit will increase your tax liability.   However, it may still be a good idea to do so, especially if you or your partner are not working, or have an income below the lower earnings limit for National Insurance contributions. You can apply by filling out an online form or contacting the Child Benefit Office. You can apply online, by phone (0300 200 3100), or by post. New parents can now also apply for Child Benefit online for the first time without having to wait up to 16 weeks for the first payment. The new application process on the Gov.uk website takes about 10 minutes and can result in payment within three days. 6. Council Tax Discount Many people also overlook council tax discounts.  There are many reasons why a discount may apply to your situation.  For example, if you are living alone, you can receive a 25% discount.  Other situations include if you have a partner who has been living at a care home for a long time, you are on a low income, or are in receipt of certain benefits. You’ll need to contact your local council to discuss your eligibility and to apply for the appropriate discount. 7. Pension Credit If you’ve reached State Pension age and are on a low income, Pension Credit provides extra money to help with living expenses and some housing costs. If you are single, it can raise your weekly income to £201.05.  If you have a partner, it can raise your combined weekly income to £306.85. You can apply online, by phone (0800 99 1234), or by post. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact TBA Group via email or WhatsApp .

Chinese food is highly popular in the UK, especially in the realm of takeout, where it has become the preferred choice for many Britons. In recent years, an increasing number of people in the UK have ventured into the Chinese food business, including Brooklyn Beckham, the eldest son of David Beckham. He collaborated with the online ordering platform Uber Eats to launch 5 dishes in London, with each dish ranging from £10-15, including the famous Chinese classic pork and prawn dumplings. Unfortunately, as soon as the dishes hit the market, they immediately attracted criticism from all corners, with The Standard describing their experience as ‘A meal that failed to ignite anything…except my fury’, and many online commentators likening their experience to eating plane food. So, what do you need to succeed at running a restaurant or takeout business in the UK? Restaurant Concept and Business Planning Before you start looking for a location for your restaurant or takeout, hiring staff, or purchasing supplies, you must establish a clear concept for your restaurant’s development.  You should also formulate a comprehensive business plan detailing your goals, budget, timeline, and marketing methods. Defining Your Target Market You should clearly define the target market for your restaurant’s development. This may be based on demographics such as age, gender, income, or location, or it may perhaps be based on psychological characteristics such as hobbies, values, or lifestyles. Understanding the needs and preferences of your target market will allow you to adjust your menu, marketing, and operations to meet their needs and preferences. Therefore, conducting research before opening the restaurant is crucial. Menu Offerings and Pricing Strategies Your menu is the lifeline of your restaurant. It should represent your ideas and target audience while providing a diverse selection of high-quality, delicious, and visually appealing food choices. Additionally, you must develop a pricing plan to balance your food costs, labour costs, and profit margins whilst still remaining competitive and attractive to your target market. Compliance with Legal Requirements and Regulations There are many legal standards and regulations for opening and operating a restaurant or takeout in the UK, and you must comply with these standards and regulations to operate legally and safely. When opening a restaurant in the UK, you will need to obtain various types of venue licenses, food business registrations, personal alcohol licenses, health and safety certificates etc.  In terms of tax, you may also need to register for VAT. As an employer, you also have legal obligations to your employees – you will need to register for both PAYE and National Insurance, and pay the national minimum wage. At TB Accountants, we’re always ready to help businesses that are looking to get started. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact TBA Group via email or WhatsApp .

Thinking about becoming a restaurant owner in the UK? Being a boss is not easy! Not only do you need a certain business acumen, but you also need to know how to reduce operating costs by saving expenses whilst managing staff, satisfying customers, and still maintaining food quality. Did you know that one of the key steps to saving costs for your restaurant is proper tax planning? If you’re a restaurant owner, be sure to accurately record some expenses – you could get back some taxes! Depreciation of assets If you want to open a restaurant, you may need to purchase a commercial building and purchase kitchen equipment and/or furniture. In that case, you can leverage these expenses—by declaring ‘depreciation of assets’ to some funds back. ‘Depreciation’ refers to the decrease in the value of assets over time, primarily due to wear and tear. According to current rules, depreciation does not need to be taxed. Instead, as assets depreciate, you can deduct the depreciation value from profits through capital allowances, thereby reducing taxable income. Generally, there are two methods for calculating depreciation: Straight Line Depreciation: For example, the cost of a computer is £1,000, with an expected life of 4 years, meaning the annual depreciation rate is 25%. Under the straight-line depreciation method, the annual depreciation amount is £250. Thus, each year, £250 is transferred from the balance sheet to the profit and loss statement. Therefore, after one year, the value on the balance sheet becomes £750, with £250 of depreciation recorded in the profit and loss statement. In the second year, the depreciation of the computer is £500, with another £250 recorded in the profit and loss statement. Reducing Balance Depreciation: This method is suitable for fixed assets that gradually depreciate, but whose lifespans cannot be accurately estimated. For example, the cost of a van is £8,000. In the first year, 25% depreciation is allowed, which is £2,000, leaving a balance of £6,000. In the second year, 25% depreciation is calculated from the reduced balance of £6,000, which is £1,500, leaving a balance of £4,500, and so on. When you purchase a new asset, it’s best to consult an accountant in advance to confirm whether the asset qualifies under the depreciation rules, and the specific calculations involved. Employee wages, benefits and pensions   As a restaurant owner, employee wages and benefits will account for a significant portion of your expenses. Fortunately, since they are part of business expenses, you can reduce taxes by deducting the following expenses when calculating business turnover: Wages and salaries: In addition to the amounts paid to employees, employers can also deduct National Insurance (NI) contributions and PAYE paid to HMRC, as well as the employer’s own NI contributions Benefits-in-kind: employee compensation benefits may not only include wages or salaries, but employees may also receive non-cash benefits such as company cars or private healthcare Pension payments Statutory payments: most employers are required to pay statutory payments to employees—statutory maternity pay, statutory paternity pay, statutory adoption pay, and statutory sick pay It’s important to keep detailed records for future verification of these claims. Rent, Utilities, and Maintenance Fees Business expenses also include rent, utilities (water, electricity, gas), and maintenance fees for renting restaurant space and maintaining restaurant operations. These can all be deducted from profits to reduce taxable income. Additionally, if you’re using your own property to run the restaurant, you can deduct expenses related to mortgage interest, property tax, and maintenance. Marketing and Advertising Every owner should know that marketing is essential—it’s the first step in attracting customers. Therefore, every restaurant will plan to invest some money in marketing and advertising, such as social media advertising, traditional media advertising, website operations, etc. Be sure to keep detailed records of these expenses—all of which are deductible for tax purposes. Office Supplies and Software If your restaurant has its own office, you may need to purchase documents, computers, various technological supplies, and software. Don’t overlook these expenses —these are also considered business expenses, and therefore qualify for tax deductions. Vehicle Repairs and Maintenance Many restaurants offer delivery services. If you buy a vehicle for the restaurant and use it for delivery, you can deduct up to 50% of any car maintenance costs. If the car is used for business 50% or more of the time, 50% of the costs can be deducted. Administrative Costs Administrative costs for the company include business entertainment, travel, communication, and transportation expenses. If you can ensure that these administrative expenses are entirely for restaurant business purposes, they can be deducted from operating profits. Business Insurance Various business insurances, such as liability insurance and property insurance, are also deductible. These insurances are crucial for protecting restaurants from unexpected events, and their costs can be written off. Alright, these are the eight important expenses that help restaurant owners save costs! Have you remembered them? As long as you understand these tax rules, you can increase the profitability of your restaurant. However, tax regulations are complex and are subject to change. We recommend that you consult with an expert accountant to help you plan ahead to optimise your restaurant finances for growth and profitability. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact TBA Group via email or WhatsApp .

Recently, one of the largest property websites in the UK, Rightmove, analysed 360 administrative regions of the UK and summarised a very detailed list of the hottest rental locations in the UK in 2023. The data shows that the rental market in the UK was quite lively in 2023, with the average number of inquiries per property increasing from 6 times in 2019 to 20 times in 2023. Due to a significant increase in demand, the average monthly rent in five administrative regions of the UK has risen by 31% to 60% since 2019. Rightmove also showed that Wrexham in Wales is the most popular rental area! It is said that landlords in Wrexham receive an average of 56 rental inquiries per day, eight times more than other areas. Let’s go! Let’s take a look at the rankings together! See if your property is listed there. Top rental markets in 2023  Here are the average rents (pcm), plus the percentage difference since 2019, ranked by order of popularity (rental enquiries): Wrexham: £960 pcm (+35%) Redbridge: £2051 pcm (+31%) Tameside: £1060 pcm (+60%) Stockport: £1389 pcm (+47%) Glasgow: £1038 pcm (+44%) Other popular markets include Thurrock (£1550), Salford (£1205), Blackpool (£795), Gravesham (£1570) and Waltham Forest (£2097). Rental market trends in 2024 Recently, economists have predicted that with the inflation rate approaching the official target of 2% and stagnant economic growth, the Bank of England is preparing to cut interest rates at least twice in 2024. So, what impact will this have on the rental market in 2024? Is it still worth investing? Data from Rightmove suggests that there are signs indicating an improvement in the supply-demand balance next year. Currently, the number of rental properties available is 11% higher than the same period last year, while the number of tenants looking for housing and making inquiries to property agents is 12% lower than in 2022. Although the supply-demand gap is improving, tenant demand is still 42% higher than at this time in 2019, while the number of rental properties available has decreased by 28%. This indicates that it will still take some time to achieve a supply-demand balance and reach the relatively normal market levels of 2019. In other words, considering the current situation of bank interest rates and the rental market, investors who wish to enter the rental market this year still have a high likelihood of achieving substantial returns. TB Accountant’s tax-saving strategies for landlord s Seeing these relatively positive pieces of information, are you eager to take a chance in 2024 and become a landlord? You will also need to understand how to save on taxes – after all, taxes can be a significant expense.  We’ll share some tax-saving tips which could help you maximise your profits for the 2024/25 tax year. Establishing a limited company As a landlord, setting up a limited company is a good way to reduce taxes. You can purchase properties through the company – this allows you to offset costs with profits, and you can also hire yourself or others to manage properties in your investment portfolio. Although this particular tax-saving strategy may not suit everyone, if it works for you, the tax-saving effect can be quite significant. If you’re interested, please contact your accountant to see if this tax-saving strategy is suitable for you. Utilise all available tax bands As a landlord, another way to potentially reduce tax expenses is to transfer some assets to your spouse. Transferring assets between spouses generally does not incur capital gains tax, so you can effectively utilise your spouse’s lower tax rate. If your spouse’s tax rate is lower than yours, you may also end up paying less rental income tax. If the relevant property does not have a mortgage and you do not receive any financial gain from the transfer, you do not need to pay any stamp duty. Make the most of your expenses Many landlords can reduce their tax expenses simply by paying more attention to their expenditures, so our advice is to make sure to declare all expenses. From now on, keep every receipt and consult your tax advisor or accountant to clarify which expenses are deductible and which are not. For example, expenses for maintaining a home office and letting agent fees can both be deducted from your profits, so why not apply for them? Consider short-term letting If you’re currently experiencing a vacancy period with tenants, you can reduce landlord taxes by offering short-term rentals. During this period, expenses such as council tax and utility bills can be declared as expenses. Selling smart Landlords often incur losses when selling rental properties because they fail to fully utilise existing tax relief policies. Landlords with multiple properties are especially susceptible to this, as if they decide to sell one of their properties, they can actually enjoy a 0% capital gains tax exemption each year. Currently, the exemption threshold is £11,300, which is a great way to save. Of course, as a landlord, the best way to save on taxes is to hire an excellent accountant and a reliable tax professional who can assist you at every step. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Many savers are currently benefiting from elevated interest rates compared to the record lows seen in previous years. You may therefore have wondered – do you need to pay tax on any interest earned? Taxes on savings In general, the principal of any savings is not taxable – only the interest earned from savings is taxable. However, HMRC provides several different tax-free allowances: the Personal Allowance, the savings starting rate, and the Personal Savings Allowance.  These allowances are usually allocated for each tax year (April 6th to April 5th of the following year). You would usually only start paying taxes on any taxable income which exceeds these allowances.  The specific amount you pay may also depend on your other income. The Personal Allowance Most people are eligible for a certain amount of tax-free income before they need to pay income tax.  This is known as the basic Personal Allowance. For the tax year 2023-24, the Personal Allowance rate was set as £12,570.  This will remain the same for 2024-25.  If your wages, pension or other income does not exceed this allowance, you can use it to earn additional tax-free savings income from interest. What is the starting rate for savings? In each tax year, you can earn up to £5000 of interest without paying tax – this is known as the ‘starting rate’. However, the more income you earn from other sources (e.g. wages or pensions), the lower your starting rate for savings.  For example: If your income from other sources reaches or exceeds £17,570, you will not be eligible for the starting rate If your income from other sources is less than £17,500, your starting rate is £5000 but will decrease by £1 for each £1 that you exceed the Personal Allowance (£12,570). So, how does this work in practice? If your income from wages is £16,000 and your savings interest is £200: Your Personal Allowance is £12,570 Your remaining wage income after deducting the Personal Allowance is £3430 (£16,000 – £12,570) Your starting rate is therefore reduced by £3430 (£5000 – £3430), which is £1570 This means that you don’t need to pay any taxes on the £200 earned in interest How does the Personal Savings Allowance work? The Personal Savings Allowance (PSA) allows you to earn up to an additional £1000 of tax-free interest on top of the starting rate. The PSA varies depending on your income tax band: Basic rate: £1000 Higher rate: £500 Additional rate: £0 Additional rate tax-payers are considered high-income earners and are not eligible for the PSA. Therefore, if your annual income exceeds £125,140 (2023-24 & 2024-25), you’ll need to pay taxes on any interest earned. What counts as interest? Many financial institutions offer accounts and/or services which will pay interest that can be taxed, including (but not limited to): Bank and building society accounts Savings and credit union accounts Unit trusts, investment trust, and open-ended investment companies Peer-to-peer lending Trust funds Payment Protection Insurance (PPI) Government or company bonds Life annuity payments Some life insurance contracts Some accounts are eligible for additional tax-relief, including Individual Savings Accounts (ISAs) and National Savings & Investments (NS&I) accounts. Interest earned from these types of accounts do not count as taxable interest. Do I need to file a self-assessment tax return?  If your savings interest exceeds the tax-free allowance threshold, you must pay taxes at the normal income tax rates. If you’re in full-time employment or are receiving a pension, HM Revenue & Customs (HMRC) will adjust your tax code to collect tax automatically. When determining your tax code, HMRC estimates how much interest you’ll earn in the current tax year based on the interest you earned in the previous year. If you still need to fill out an additional self-assessment tax return, report any savings income on that form. If you’re self-employed, you’ll need to file a self-assessment to report your savings and investment income. If you’re not working, not receiving a pension, or haven’t completed a self-assessment, your bank or building society will inform HMRC how much interest you received at the end of the tax year. HMRC will then tell you whether you need to pay tax and how to pay it. Please note that you cannot avoid declaring the interest you earn. Your bank or building society works closely with HMRC and will actively report your earned interest to them. If your savings interest is below your tax-free allowance, HMRC will refund any tax that you’ve overpaid. However, you must apply for the refund within four years after the end of the relevant tax year. If you’ve filled out a self-assessment tax return, you can claim it through that. If not, you can fill out form R40 and send it to HMRC. A reminder from TB Accountants Please note that income from savings within the tax-free allowance range still counts towards your overall income. If you’re close to the threshold, this income might push you into a higher tax bracket, requiring you to pay more taxes. So, if you’re a basic rate taxpayer, and the interest earned from savings is enough to push you into the higher rate threshold, you’ll only be able to enjoy a £500 personal savings allowance, and the remainder will be taxed at the higher rate of 40%. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

The cause of the matter originated from a post by a certain blogger in the UK some time ago: ‘Is there no one else who finds it strange that unpackaged bread in supermarkets is exposed like that, consumers can freely touch and select it with their hands?’ And this blogger also stated, ‘I don’t care whether vegetables and other foods are wrapped in outer packaging, because I will peel, clean, or cook such foods before eating’, implicitly meaning  bread, which is meant to be eaten directly, doesn’t even have a cabinet to cover it or packaging! And others are still touching it with their hands! So, am I eating bread or human bacteria? Many others shared similar sentiments: “I once saw someone sneeze while selecting bread…” “I used to work in the food service industry, and I would never eat unpackaged food placed on shelves. Before consumers search for food, they may cough, spit, not wash their hands properly after going to the bathroom, pick their noses…” “The last time I saw a child at the supermarket, she took a donut, tasted it, and put it back, and the adult next to her did nothing…” Why are some breads in supermarkets not packaged? There are probably two reasons. One is that some breads are fried first, and the high temperature makes plastic packaging produce harmful substances to the human body; the other is that packaging residue garbage is easily generated, which is not conducive to environmental protection. The hygiene issues of bread in British supermarkets have also sparked discussions before. Previously, a supermarket was exposed in a video. There were mice running around in the basket containing baked bread, and there were also small insects flying around… To avoid causing discomfort, the editor will not include images.  What started as a discussion about bread in the baking area soon spread to the fruit and vegetable area. Originally thought to be an innocent victim, after understanding it, it turns out it’s not wronged at all~ Unpackaged fruits and vegetables, equally guilty? Some netizens said that unpackaged fruits and vegetables are also not within their selection range, because when they were shopping in a supermarket once, they saw someone who had just wiped their nose go and pick lettuce, and then put it back because they were dissatisfied~ This netizen believes: “Although lettuce will be washed at home before eating, I feel like I can’t wash off the taste of their mucus. I have psychological barriers, sorry~” Some netizens also believe that some women’s nails are too long, piercing into the flesh of the fruit, wouldn’t the bacteria also get in? Then I can’t eat it. Many British netizens are posting, “When will the wind of 315 blow to the UK?” At the same time, some netizens have stood up to speak for bread and fruits: “French people often hold unpackaged baguettes, and casually place them, then hold them after handling coins, and then eat the bread directly without washing their hands. Many French people do this every day, they still live well, and are very long-lived.” “I don’t like seeing plastic oceans, plastic is particularly harmful to bread.” Some netizens living in Japan also said that bread and fruits do not necessarily need packaging because it would generate a lot of unnecessary packaging residue garbage. Japan often over-packages, wrapping food in layer after layer of bags, which to a certain extent affects the environment. Everyone knows that many goods in British supermarkets are taxed, and sometimes taxes are directly added to the price of goods. But some products are tax-free, such as the following categories: Fresh fruits and vegetables Meat and poultry Fish and seafood Dairy products, including milk, cheese, and yogurt Bread and grain products Canned or frozen foods, such as canned vegetables and frozen meats Snacks, such as chocolate, potato chips, etc. You all noticed, right? Although your bread may not be satisfactory in terms of packaging, it is tax-free! It should be noted that some processed foods or beverages may be considered exempt from tax, but may also be affected by specific tax regulations. Therefore, the specific situation may vary, please check the product label or consult the store staff before purchasing. If you want to open a business and want to know which products are tax-free, TB Accountants has many tax-saving tips to share with you! So, would you still buy unpackaged bread from your local  supermarket? For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .