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How to Change Accounting Reference Date

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  Changing your company’s Accounting Reference Date (ARD) might seem like a daunting task, but it’s actually pretty simple. Whether you’re gearing up for tax season, coordinating with group companies, or syncing up with your business cycle, tweaking your ARD can give you more flexibility and better control over your financial year. In this guide, we’ll break down what an ARD is, why you might consider changing it, when it’s permissible, and  how to change Accounting Reference Date  online or by mail — plus we’ll tackle some frequently asked questions. What Is an Accounting Reference Date? Your Accounting Reference Date (ARD) is the official date that signifies the end of your company’s financial year. It determines when your annual accounts and tax return are due. When you establish your company, Companies House automatically assigns your ARD, which is typically the last day of the month in which your company was incorporated. For instance, if your company was set up on J...
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UK VAT Rates on Different Goods and Services

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  Value Added Tax (VAT) is a tax that gets tacked onto the price of goods and services in the UK. The rate can vary depending on what you’re buying. Businesses act as collectors for HM Revenue & Customs (HMRC), gathering VAT and then paying it when they file their VAT returns. Getting a grip on how VAT operates is crucial for both consumers and businesses. It influences the final price shoppers see in stores and the tax figures that businesses have to manage when selling their products or services. In the UK, there are four primary VAT rates: Standard Rate: 20% Reduced Rate: 5% Zero Rate: 0% Exempt: No VAT charged For the 2025/26 tax year, the VAT registration threshold is set at £90,000. This means that businesses with a taxable turnover exceeding this amount need to register for VAT. What Are the Current UK VAT Rates? There are several  UK VAT rates  that depend on the type of item or service: Standard Rate (20%) This is the most frequently applied VAT rate and cove...
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What is Optimum Director’s Salary 2025/26

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  The 2025/26 tax year is set to bring a mix of challenges and opportunities for company directors, especially in light of the  October 2024 Budget  update. With the Employer’s National Insurance (NI) threshold taking a significant dip, many directors are left pondering:  What is the optimum directors salary 2025/26 ? In this article, we’ll dive into the key changes, tax thresholds, and salary strategies that can help you keep more of your hard-earned cash while ensuring you stay compliant. What’s New in the 2025/26 Tax Year? One of the biggest changes for directors is the reduction of the Employer’s NI threshold from £9,100 to £5,000. Starting in April 2025, companies will be required to pay 15% NI on any salaries exceeding £5,000, unless they qualify for the Employment Allowance. This shift will influence how directors decide to structure their pay — particularly for those who lean towards a low-salary, high-dividend approach to minimize tax. Therefore, determining...
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Tax Period UK - Key Tax Year Dates and Deadlines

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  The tax system in the UK follows strict timelines, and understanding tax periods is essential for individuals and businesses. Missing deadlines can lead to penalties, interest charges, and cash flow issues. Whether you’re an employee, self-employed, or running a business, knowing your tax period helps you file on time and stay compliant. This guide explains tax periods for income tax, corporation tax, VAT, and PAYE, along with key tax year dates and deadlines to remember. What is a Tax Period in the UK? A  tax period  is the timeframe set by HMRC for reporting and paying taxes. It determines when income, profits, and business transactions are assessed for taxation. Tax periods vary depending on the type of tax, such as  income tax ,  corporation tax , or  VAT . The most common tax period is the standard tax year, running from 6 April to 5 April of the following year. Different tax periods apply to: Individuals (employees, self-employed, and landlords) Bus...
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