Offering

information

& helpful

guidance

for all of our clients

Offering

information

& helpful

guidance

for all of our clients

At Bailey Wilson, we believe that good advice shouldn’t be hard to come by. Whether you’re running a business or managing personal finances, our aim is to make the numbers easier to understand, and the decisions easier to make.

VAT registration threshold

If your business turnover exceeds the VAT registration threshold in a rolling 12 month period – currently £90,000 (as of April 2024) – you are legally required to register for VAT with HMRC.
Registering for VAT means charging VAT on your sales and reclaiming VAT on eligible purchases, and in most cases paying the difference over the HMRC each quarter. Under current legislation VAT must be filed with HMRC digitally via approved software.

Failure to meet these obligations can be costly for businesses with penalties and fines being imposed for late registration, filing and payments.

If you’re nearing the threshold or expect to exceed it soon, speak to us so we can help you prepare, advise on the best VAT scheme for your business, and ensure your registration goes smoothly.

National Minimum Wage (NMW)

Keeping up to date with National Minimum Wage (NMW) and National Living Wage (NLW) rates is essential if you employ staff.
The rates are announced by the chancellor each year and are effective at the start of the new tax year and on an employees birthday if they reach the next threshold.

The National Living Wage applies to all workers aged 21 and over, with tiered rates for younger employees and apprentices. The current rates can be found on the link below:

National Minimum Wage and National Living Wage rates – GOV.UK

At Bailey Wilson, we help ensure your payroll is always up to date and compliant with the latest wage legislation.

Registering for self assessment

If you receive income outside PAYE – such as from self-employment, property rental, dividends, or capital gains – you’ll likely need to register for Self Assessment with HMRC. This must be done by 5 October following the end of the tax year in which you received the income.
Timely registration helps you avoid penalties and ensures you receive the necessary details to file your return. You’ll need to keep clear records of your income and allowable expenses, so staying organised throughout the year is key.

Need help registering or filing your return? We’re here to guide you every step of the way.

Making Tax Digital Income tax (MTD ITSA)

Making tax digital is a government initiative being introduced for soletraders and landlords and will require tax payers to file their returns digitally, via approved software, on a quarterly basis.
This new scheme is being phased in from April 2026 and becomes mandatory for tax payers based on their turnover levels as follows:
From April 2026:
For tax payers whose gross income exceeds £50,000
From April 2027:
For tax payers whose gross income exceeds £30,000
From April 2028:
For tax payers whose gross income exceeds £20,000
HMRC will be writing to tax payers who fall into the first category outlining their obligations.

We are fully prepared for MTD ITSA and will be supporting clients through this transition with a variety of support packages.

Drop us a line to learn more and see where we can help.

Drop us a line to learn more and see where we can help.