Knowledge Hub

Essential UK accountancy terms, explained in plain English.

Quickly get up to speed on PAYE, the Construction Industry Scheme, Making Tax Digital thresholds, and evolving R&D rules so you can make informed decisions and stay compliant.

PAYE (Pay As You Earn)CIS (Construction Industry Scheme)Making Tax Digital (MTD) thresholds R&D relief changes FAQs

01 · Definition

PAYE (Pay As You Earn)

HMRC system employers use to collect Income Tax and National Insurance from wages in real time.

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Operate PAYE on every payroll run with Real Time Information (RTI) submissions due on or before payday.
Keep employee starters, leavers and benefits (P11D) details up to date so tax codes remain accurate.
Reconcile monthly Employer Payment Summary (EPS) values against HMRC and plan for payments by the 22nd (electronic) deadline.

02 · Definition

CIS (Construction Industry Scheme)

Rules for contractors and subcontractors that set how tax is deducted from construction payments.

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Contractors must verify subcontractors with HMRC and deduct 20% (registered) or 30% (unregistered) tax unless gross status applies.
Monthly CIS returns are due by the 19th of the following month and should reconcile payments, materials and deductions.
Statements must be issued to subcontractors, and deductions can usually offset against PAYE liabilities for companies registered under CIS.

03 · Definition

Making Tax Digital (MTD) thresholds

Digital record-keeping and quarterly updates becoming mandatory for income tax and VAT at specific turnover levels.

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VAT: MTD applies when taxable turnover exceeds the £90,000 registration threshold (increased from £85,000 on 1 April 2024); digital records and compatible software are required for returns.
Income Tax Self Assessment: from April 2026, landlords and sole traders with £50,000+ qualifying income must send quarterly updates; the threshold falls to £30,000 from April 2027.
Plan software and bookkeeping processes early to avoid rushed migrations and penalties for late digital filings.

04 · Definition

R&D relief changes

Recent reforms reshape how companies claim relief for qualifying R&D expenditure.

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A merged R&D scheme now broadly aligns SME and RDEC rules for accounting periods beginning on or after 1 April 2024, with an enhanced rate for R&D intensive SMEs retained.
First-time claimants must submit an Additional Information Form (AIF) before filing the corporation tax return to avoid rejection.
Qualifying cost categories remain specific—tracking staff, consumables and subcontracted R&D accurately supports defendable claims.

Momentum in motion

Let’s get to work.

Tell us a bit about your business and what you’re looking to achieve — we’ll come back to you within one working day with a clear path forward.

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Knowledge Hub

Essential UK accountancy terms, explained in plain English.

Quickly get up to speed on PAYE, the Construction Industry Scheme, Making Tax Digital thresholds, and evolving R&D rules so you can make informed decisions and stay compliant.

PAYE (Pay As You Earn)CIS (Construction Industry Scheme)Making Tax Digital (MTD) thresholds R&D relief changes FAQs

01 · Definition

PAYE (Pay As You Earn)

HMRC system employers use to collect Income Tax and National Insurance from wages in real time.

Explore services

Operate PAYE on every payroll run with Real Time Information (RTI) submissions due on or before payday.
Keep employee starters, leavers and benefits (P11D) details up to date so tax codes remain accurate.
Reconcile monthly Employer Payment Summary (EPS) values against HMRC and plan for payments by the 22nd (electronic) deadline.

02 · Definition

CIS (Construction Industry Scheme)

Rules for contractors and subcontractors that set how tax is deducted from construction payments.

Explore services

Contractors must verify subcontractors with HMRC and deduct 20% (registered) or 30% (unregistered) tax unless gross status applies.
Monthly CIS returns are due by the 19th of the following month and should reconcile payments, materials and deductions.
Statements must be issued to subcontractors, and deductions can usually offset against PAYE liabilities for companies registered under CIS.

03 · Definition

Making Tax Digital (MTD) thresholds

Digital record-keeping and quarterly updates becoming mandatory for income tax and VAT at specific turnover levels.

Explore services

VAT: MTD applies when taxable turnover exceeds the £90,000 registration threshold (increased from £85,000 on 1 April 2024); digital records and compatible software are required for returns.
Income Tax Self Assessment: from April 2026, landlords and sole traders with £50,000+ qualifying income must send quarterly updates; the threshold falls to £30,000 from April 2027.
Plan software and bookkeeping processes early to avoid rushed migrations and penalties for late digital filings.

04 · Definition

R&D relief changes

Recent reforms reshape how companies claim relief for qualifying R&D expenditure.

Explore services

A merged R&D scheme now broadly aligns SME and RDEC rules for accounting periods beginning on or after 1 April 2024, with an enhanced rate for R&D intensive SMEs retained.
First-time claimants must submit an Additional Information Form (AIF) before filing the corporation tax return to avoid rejection.
Qualifying cost categories remain specific—tracking staff, consumables and subcontracted R&D accurately supports defendable claims.

Momentum in motion

Let’s get to work.

Tell us a bit about your business and what you’re looking to achieve — we’ll come back to you within one working day with a clear path forward.

Book a call Explore services