Brytania Accountants

12/07/2026

With the first quarter of the 2026/27 tax year having just wrapped up on 5th July, Making Tax Digital (MTD) for Income Tax is no longer a looming future concern—it is actively here. For thousands of UK sole traders and landlords, the clock is ticking toward the very first mandatory digital deadline on 7th August 2026.

With the first quarter of the 2026/27 tax year having just wrapped up on 5th July, Making Tax Digital (MTD) for Income Tax is no longer a looming future concern—it is actively here. For thousands of UK sole traders and landlords, the clock is ticking toward the very first mandatory digital deadlin...

03/11/2025

Does the UK government impose more control on small business?

UK authorities assure a drive towards greater transparency, digital adaptation, and fiscal efficiency in company and tax administration with regard to the introduced updates to regulations on companies and business activities. However, it seems that the real aim is increased oversight and control.

UK authorities assure a drive towards greater transparency, digital adaptation, and fiscal efficiency in company and tax administration with regard to the introduced updates to regulations on companies and business activities. However, it seems that the real aim is increased oversight and control.

26/07/2025

Free and simple UK invoice application. Create and send professional invoices from your laptop or mobile.

26/06/2025

Working as Self-Employed in the UK: What You Need to Know?

Becoming self-employed in the UK is a popular option for individuals seeking flexibility, independence, and control over their work life. Whether you’re a sole trader, freelancer, or gig worker, understanding the opportunities and responsibilities that come with self-employment is essential.

You can read the article on our blog:

Becoming self-employed in the UK is a popular option for individuals seeking flexibility, independence, and control over their work life. Whether you’re a sole trader, freelancer, or gig worker, understanding the opportunities and responsibilities that come with self-employment is essential.

23/05/2025

The government has introduced several significant tax changes for the upcoming 2025/26 tax year, affecting both individuals and businesses. This leaflet outlines the most important updates, particularly for residents of England, Wales, and Northern Ireland.

10/03/2025

Gaps in NI Contributions and Your UK State Pension

Your State Pension is an important source of retirement income in the UK, but gaps in your National Insurance (NI) record can reduce it. These gaps occur when you do not pay NI contributions in a given year.

Good news? You can fill these gaps! Below you’ll find information on how these gaps affect your pension, how much you can receive, and how to resolve the issue. It also applies if you’ve only worked in the UK for a few years.

How do gaps affect your pension?

The amount of your pension depends on the number of years you have paid NI contributions or received credits (for example, for raising children or during periods of illness). For the “new State Pension” (for people retiring after April 2016), the following rules apply:

Full pension: You need 35 qualifying years to receive £221.20 per week (about £11,502 per year in the 2024/25 tax year).
Partial pension: With at least 10 qualifying years, you get a proportionate amount—for example, 20 years entitles you to about £126 per week (about £6,572 per year). Fewer than 10 years: You will not receive a pension unless you purchase more qualifying years.

Under the older “basic State Pension,” you receive £169.50 per week (about £8,814 per year) with 30 qualifying years. Having fewer than 30 years means a proportionally lower pension.

Have you worked in the UK for only a few years?

Even if you have fewer than 10 qualifying years, you can still receive a State Pension by filling these gaps. For instance, if you already have 5 years, you could buy 5 more to reach the 10-year minimum and get at least a partial pension.

How to fill the gaps

Check your NI record: Visit GOV.UK to review your contribution history and find out which years have gaps.

1. Free NI credits: You may be entitled to credits (for example, if you received Child Benefit or Maternity/Paternity Allowance, or if you had an extended period of illness). Make sure you claim any credits you qualify for.

2. Self-employment and late tax returns: If you were self-employed but failed to submit a tax return on time, catching up on your return may be enough to qualify that year. Class 2 NI contributions are relatively low (around £179 per year). If your net profit exceeded the Small Profits Threshold (£6,725 in 2024/25) but was below the Lower Profits Limit (£12,570 in 2024/25), the year may count automatically. Once your profit is over £12,570, you need to pay NI contributions to make that year qualify.

3. Pay for missing years: You can buy missing years for about £907 each. Until 5 April 2025, you can make backdated contributions as far back as 2006—an important deadline! If you expect a long retirement, paying now could potentially pay off in a relatively short time.

A few final tips

Gaps in your NI record don’t have to ruin your retirement plans. Whether you aim for the full £221.20 per week or just want to meet the 10-year minimum, putting in some effort to fill any missing years can significantly boost your future pension.

HTTP://brytania.co.uk

Expert UK tax returns and accounting services by certified professionals at Brytania Ltd. Fast, affordable, and trusted—contact us today!

24/11/2024

How the Autumn Budget’s Capital Gains Tax Changes Affect Cryptocurrency Sales

The recent sharp appreciation in cryptocurrency prices, particularly Bitcoin, has encouraged many investors to consider selling their holdings. However, if you’re thinking about cashing in on your profits, it’s important to understand how the recent changes to Capital Gains Tax announced in the Autumn Budget will impact what you owe. These changes, which were introduced on 30th October 2024 mean higher taxes on crypto profits, so it’s crucial to know the new rules and how they apply to cryptocurrency investors.

What has changed?

Before the Autumn Budget, CGT rates on profits from selling assets like cryptocurrency were 10% for basic-rate taxpayers (those with lower income) and 20% for higher-rate taxpayers (those with higher income). Now, the rates have increased to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. This change applies to all assets subject to CGT, including cryptocurrency, and it means that everyone selling Bitcoin or other digital assets will face higher taxes on their profits.

Let’s say you bought 1 BTC on 1st November 2018 for £4,500 (the price at the time) and you’re selling it now, on 24th November 2024, for £76,400 (the current price). Your profit would be:

• £76,400 (selling price) - £4,500 (buying price) = £71,900.
Here’s how much tax you would owe under the old and new CGT rates:

• Under the Old Rates:

o Basic-rate taxpayer: £65,900 x 10% = £6,590.
o Higher-rate taxpayer: £65,900 x 20% = £13,180.

• Under the New Rates:

o Basic-rate taxpayer: £65,900 x 18% = £11,862.
o Higher-rate taxpayer: £65,900 x 24% = £15,816.

As you can see, under the new rules, a basic-rate taxpayer would pay £5,272 more, while a higher-rate taxpayer would pay £2,636 more in tax for the same sale.

Cryptocurrency switching will not help

Some investors might think switching Bitcoin (BTC) to another cryptocurrency like Tether (USDT) instead of cash could help reduce their tax bill. Unfortunately, this isn’t the case. HMRC treats the exchange of one cryptocurrency for another as a taxable disposal, just like selling for fiat currency (e.g., GBP). This means if you trade BTC for USDT, it triggers a capital gains event, and you’ll need to calculate and report any profit made at the time of the trade. The same CGT rules and rates apply, whether you’re trading for cash or another cryptocurrency. In other words, switching BTC to USDT or any other cryptocurrency won’t help you avoid CGT on your profits
Is there any way to escape the tax?

In one word – no. At least legally. Some might think about evading tax by not declaring the sale of crypto assets. However, failing to declare the sale of cryptocurrency assets can lead to serious penalties and consequences under UK tax law.

Penalties for deliberate evasion may reach 100% of the tax due. Plus, interest. In severe cases, particularly for deliberate tax evasion or fraud, HMRC can pursue criminal charges. This could lead to criminal fines (substantial amounts, depending on the scale of evasion) and imprisonment. For the most serious cases, sentences can reach up to 7 years.

Expert UK tax returns and accounting services by certified professionals at Brytania Ltd. Fast, affordable, and trusted—contact us today!

22/11/2024

The pension system in the United Kingdom is based on employee contributions and statutory entitlements. UK citizens and individuals from other countries must meet some requirements to qualify for a pension. The rules outlined below regarding the UK pension system cover key aspects such as the number of qualifying years, types of contributions, retirement age, the option to pay voluntary contributions, and the pension amount.

1. Number of Years Required to Qualify for a Pension
The primary condition for receiving a full state pension in the UK is achieving the required number of qualifying years, which refers to years during which an individual has regularly paid National Insurance Contributions (NIC). A minimum of 35 qualifying years is required to qualify for a full pension.

Individuals who have accumulated fewer than 35 years but more than 10 years will be entitled to a partial pension, proportional to the number of years of contributions paid. Those with fewer than 10 qualifying years will not be eligible for a UK state pension unless their contribution years were accrued in another European Union country (including Poland) or within the European Economic Area. Due to international agreements, work periods in different countries can be combined to meet the minimum contribution requirements.

2. National Insurance Contributions
National Insurance Contributions (NIC) are a fundamental component of the UK pension system. They are mandatory for individuals employed under a work contract or self-employed who earn above a specified income threshold. The amount of NIC depends on the class of contributions the individual belongs to:

Class 1 Contributions: These are paid by employees earning above a certain annual threshold. Employers also contribute on behalf of their employees.

Class 2 Contributions: These are mandatory for self-employed individuals with annual income above a specified threshold.

Class 3 Contributions: These are voluntary contributions that can be made by individuals who wish to top up their record to meet the minimum requirement of 10 qualifying years.

3. Option to Pay Voluntary Contributions
For individuals who, for various reasons, do not meet the minimum 10 qualifying years but wish to qualify for a UK state pension, there is the option to pay voluntary National Insurance Contributions (Class 3 Contributions). This is particularly relevant for individuals who are not currently working in the UK or who have gaps in their employment history, for example, due to career breaks or work abroad.

Voluntary Class 3 contributions are higher than those paid by employees (Class 1). The amount depends on the specific tax year, in which the contribution is made. It is worth noting that voluntary contributions can be paid retroactively but only for a limited number of years (usually up to six years), allowing individuals to fill in gaps in their record and increase their pension entitlement.

4. Retirement Age
The UK has introduced changes to the retirement age, which is now determined by the date of birth and applies equally to both men and women. Currently, the retirement age in the UK is 66 years. However, it is gradually increasing and will reach 67 years for those born after 1960. The UK government plans further changes, which may raise the retirement age to 68 in the coming decades.

5. Pension Amount
The amount of the UK state pension depends on the number of qualifying years. A full pension is available to individuals who have accumulated 35 qualifying years, while those with fewer than 35 years receive a proportional pension based on the number of contribution years.

As of 2024, the full state pension amounts to £203.85 per week, equivalent to approximately £880 per month. To receive this amount, 35 qualifying years are required. Those with at least 10 qualifying years will receive a partial pension, with the exact amount dependent on the number of contribution years.

Examples:

An individual with 10 qualifying years will receive approximately £58.24 per week (10/35 of the full pension).
An individual with 20 qualifying years will receive approximately £116.49 per week.
The pension amount can also be increased if an individual delays claiming their pension, with additional sums calculated for each year worked beyond the state pension age.

6. Place of Employment
One crucial aspect of qualifying for the UK state pension is the location of employment. Generally, NIC must be paid for work carried out within the UK. However, there are exceptions, particularly for individuals working abroad but remaining under the UK social security system, such as diplomats or employees of international companies.

It is worth noting that for EU citizens who worked in the UK before Brexit, special rules apply under the UK's withdrawal agreement with the EU. These individuals may combine periods of work in other member states with periods of work in the UK to meet the minimum contribution requirements.

7. Immigration Matters
Since Brexit, Polish citizens and other EU nationals who wish to work and pay NIC in the UK must meet specific immigration requirements. EU citizens who lived and worked in the UK before 1 January 2021 could apply for Settled Status or Pre-Settled Status, enabling them to access the UK pension system on similar terms to UK citizens.

Polish citizens arriving in the UK after this date must apply for a work visa and meet specific criteria, including salary thresholds and professional skills. Only then can they start working and paying NIC, which in turn allows them to qualify for the UK state pension.

https://brytania.co.uk/

Call now to connect with business.

19/11/2024

In the Autumn Budget of 2024, the UK government introduced several significant changes across various tax and financial areas:
Minimum Wage: Effective from April 2025, the National Minimum Wage for individuals aged 21 and over will increase by 6.7%, rising from £11.44 to £12.21 per hour.

National Insurance: Starting April 2025, employers' National Insurance Contributions (NICs) will rise by 1.2 percentage points to 15%. Additionally, the threshold at which employers begin paying NICs for each employee will decrease from £9,100 to £5,000.
This increase will affect particularly companies where the only employee is the director. The change means a substantial increase in NIC's liability. This might be avoided or mitigated if another person is employed to utilize Employment Allowance, which will be increased from £5,000 to £10,000.

Capital Gains Tax (CGT): For disposals made on or after October 30, 2024, the lower rate of CGT will increase from 10% to 18%, and the higher rate from 20% to 24%. This change aligns the taxation of non-residential gains with residential property gains.

Non-Domiciled (Non-Dom) Tax Regime: The existing non-dom tax regime will be abolished and replaced with a new residence-based system over a four-year period. This reform is expected to raise £12.7 billion over the next five years.

Stamp Duty: The Stamp Duty Land Tax (SDLT) surcharge on second homes in England and Northern Ireland will increase by 2%, bringing the surcharge to 5%, effective from October 31, 2024.

Income Tax Thresholds: The freeze on personal income tax thresholds will not be extended. Starting from the 2028-29 tax year, these thresholds will be updated in line with inflation.

https://brytania.co.uk/

Send a message to learn more