Charlton Baker

29/05/2026

Renting out property? Make sure the tax side doesn’t catch you out.

Rental income is generally taxable, and understanding how the rules work in practice can make a real difference. For example:
- The first £1,000 of rental income may be covered by the property allowance
- Above this, you may need to register for Self Assessment and report income to HMRC
- Allowable expenses can significantly reduce your taxable profit if claimed correctly
- In some cases, National Insurance contributions may also be worth considering.

Understanding what you can claim, what you can’t, and when you need to report can make a real difference to your overall tax position.

Landlord tax and National Insurance considerations

28/05/2026

Thinking about taking on your first employee?

Strong foundations - payroll, contracts, compliance and planning for the true cost - make all the difference.

Taking time to prepare properly helps you avoid unnecessary headaches, look after your people, and build a business that’s ready to grow.

We’ve put together a practical checklist to help:

New employers check list

27/05/2026

If your business invoices customers but doesn’t get paid straight away, standard VAT rules can feel frustrating.

Under normal VAT accounting, VAT is due to HMRC as soon as an invoice is raised, whether or not you’ve been paid. The VAT Cash Accounting Scheme changes that by letting you account for VAT only when your customer pays.

As with all things VAT, there are thresholds, exclusions and situations where it won’t apply, so it’s important to understand whether it’s the right fit for you.

Find out how the scheme works, who can use it, and when it might make sense for your business.

VAT Cash Accounting

26/05/2026

Selling your business? The tax outcome matters more than you might think.

Business Asset Disposal Relief (BADR) can reduce the Capital Gains Tax you pay when selling a business, shares in a trading company, or an interest in a partnership. When the conditions are met, gains may be taxed at a reduced 18% CGT rate (2026-27).

To qualify, timing and structure are key. In broad terms:
- You’ll usually need to have owned the business or shares for at least two years
- The business must be trading (not primarily investment-based)
- There are specific rules depending on whether you’re selling assets, shares, or closing a business

BADR can be claimed multiple times, up to a £1 million lifetime limit, making it a valuable relief to get right.

If you’re planning an exit, reach out to Charlton Baker - clarity now can make a significant difference later.

21/05/2026

VAT on car leasing is an area where assumptions often trip businesses up.

While leasing a car for business use feels straightforward, HMRC normally allows only 50% of the VAT on leasing charges to be reclaimed. This applies even when the car is mainly used for work, as an element of private use is assumed.

That said, the rules aren’t one-size-fits-all. Certain vehicles - such as taxis or driving instruction cars - may qualify for full VAT recovery, and short-term business-only hires can fall outside the usual restriction.

Understanding these nuances can make a real difference to your VAT position.
Explore the detail on our website or get in touch with Charlton Baker for clear, commercially focused guidance.

Reclaiming VAT on car leasing costs

21/05/2026

Discover why businesses trust Charlton Baker.

20/05/2026

Reducing Inheritance Tax isn’t just about planning for later - it can start during your lifetime.

Making use of IHT gifting allowances can be a practical way to reduce the value of your estate while supporting the people and causes that matter to you.

Key allowances to be aware of include:
- The £3,000 annual exemption, with the option to carry unused allowance forward for one year
- Small gifts of up to £250 per person each tax year
- Wedding and civil partnership gifts, with higher limits for close family
- Regular gifts from surplus income, which can be especially effective with good record keeping.

When used carefully, these exemptions can form part of a thoughtful, long-term estate planning strategy.

We're here and ready if you want to talk to an expert.

19/05/2026

Capital Gains Tax on property sales is often misunderstood.

Living in a property at some point doesn’t automatically mean the entire gain will be tax free. Periods spent living elsewhere, owning more than one property, or changes in personal circumstances can all affect how much Private Residence Relief is available.

That said, the rules do recognise real life. Certain absences are protected, including time spent renovating, working away in the UK, or working overseas. In many cases, the final months of ownership are also automatically exempt.

Understanding how these reliefs apply - and where they don’t - can have a major impact on the CGT you pay when you sell.

Tax effects of living away from your home

14/05/2026

Receiving dividends? Make sure you’re not paying more tax than you should.

Dividends come with their own allowances and tax rates, separate from other income. But they don’t sit in isolation.

What often surprises people is that:
- Dividends are added to your other income when working out your tax band
- This means they can tip you into higher rate tax
- Different portions of your dividends can be taxed at different rates
- Above certain thresholds, HMRC expects a Self Assessment return.

Understanding how dividends interact with the rest of your income can make a real difference to your tax position.

Read our guide here:

Paying Tax on Dividends

13/05/2026

Many people are surprised to discover that earning just over £100,000 can mean paying tax at an effective rate of 60%.

A simple example:
- Earn £1,000 above £100,000
- £400 is paid in higher rate tax
- A further £500 of personal allowance is lost and also taxed
- Total tax on that £1,000: £600

This continues until the personal allowance is fully removed.

The good news is that careful planning - from pension contributions to charitable giving - can help manage this position and protect more of your income.

If your income fluctuates or you’re approaching this threshold, it’s worth getting clarity early.