Business entertainment: Business entertainment is the entertainment provided by a business/company to people other than employees. An example of this is the entertainment provided to customers. If it is provided to employees of the company or if it is not provided free it means it......

What is a VAT margin Scheme? A VAT margin scheme is an optional scheme which can be opted by anyone selling the following Second hand goods Works of art Antiques Collectors’ items Why do you need a VAT margin scheme? If you are selling the......

The importance of forward planning At some point you will want to stop working in your business and either sell up – in which case business exit planning is a crucial element of your financial strategy, and could make all the difference to your long-term......

How can i pay companies house penalties?    You can pay companies house your penalty by cheque, bank transfer (known as BACS) or by credit/debit card. Paying by Cheque You should make it payable to Companies House, with your company name and number on the......

In this section we consider some of the most important tax issues for employers and employees. Is your tax code correct? – A Guide from Wimbledon Accountants The purpose of the PAYE system is to collect the right amount of tax from your earnings throughout......

Can I Claim expenses if i am working from Home? Working from home may be many people’s dream come true. Whether it’s the employee of a forward thinking company in need of work flexibility, or a small business looking for a cash-flow head start through......

Xero surely is an amazing platform, and it allows you to connect with stripe and take payments. If you are accepting payment via stripe and need help with reconciliation, you will have to follow the guidelines given below. Once you have collected the payment in......

Starting a business Starting a business is an exciting and challenging experience, and one which also carries a fair degree of risk. During the start-up phase you will need to make all kinds of decisions that could be critical to the long-term success of the......

Income Tax Rates and Bands Recent income tax rates and bands are as follows: 2015/16 2016/17 2017/18 Savings rate: 10%, 0% from 2015/16 0 – £5,000 0- £5,000 0- £5,000 Dividend Allowance: 20% NA 0 – £5,000 0 – £5,000 Basic rate: 20% 0 –......

Most purchases carry a VAT charge. Value Added Tax (VAT) is levied on most business transactions and on many goods and some services. There are three rates of VAT in the UK: 20% (the ‘standard’ rate). 5% (‘reduced’ rate) and 0% (‘zero’ rate). You will......

Small Business Accountants – Capital Allowances Guide ‘Capital allowances’ is the term used to describe the deduction we are able to claim on your behalf for capital expenditure such as business equipment, in lieu of depreciation. Annual Investment Allowance (AIA) The maximum annual amount of......

IR35 Personal Service Companies IR35 was brought in to prevent the payment of less tax and national insurance by using a personal service company or partnership to provide services through rather than being a direct employee. For example, by using a personal service company it......

Main Tax Late Filing and Payment Penalties This article summarises the main tax late filing and payment penalties. In addition, you should be aware there are penalties for providing incorrect information. As a small business owner you will have to deal with a number of......

Pay Staff Tax Free – Staff Suggestion Scheme This scheme is specifically allowed and provided for in the legislation. It is very simple to operate and works as follows… Employees can be rewarded for making suggestions that relate to your business activities, and if the......

Minimising Tax on Company Cars The cost of being provided with a company car has reached extremely high levels and whether to make use of a company car for private purposes now requires careful consideration to minimise the tax costs. There are a number of......

Employees Working Abroad When your employees go to work abroad you need to think about their potential liability to income tax and national insurance, but be careful because there are different rules for each. Income tax The tax liability will depend on how long the......

The Basics of Inheritance Tax Inheritance tax (IHT) is starting to be more of a concern to many people. Most estates (the assets you leave when you die) are still not charged with inheritance tax, as the total value is not high enough, but more......

There are many reasons why a company is dissolved, ranging from insolvency to simply having come to the end of its useful life.   Whatever the reason, it is essential that the correct advice is given by the company’s advisers and the correct decisions are......

The legislation that gives the power to HMRC to make a discovery assessment is section 29 Tax Management Act (TMA) 1970.   Requirements for a discovery assessment HMRC cannot generally raise a discovery assessment if the taxpayer has filed a tax return unless HMRC has evidence to suggest......

With April fast approaching, your clients need to be aware of the changes in statutory pay rates which are set to come into force. April brings with it several developments which are set to alter the landscape of employment law, particularly in the area of......

Summary Chancellor Philip Hammond said it would be a short, snappy affair when he delivered the government’s first Spring Statement to the House of Commons today, and this was indeed to be the case – it took just 30 minutes to cover the key points.......

Family Tax Planning In this helpsheet we’re going to look at the main ways of tax planning with the use of family members… Paying wages to your spouse/civil partner and children through your business Your spouse/civil partner may not have any income at all, and......

National Insurance – Your Way Around the Maze All rates in this article are for 2018/19. NIC for Employees For employees Class1 National Insurance (NI) primary contributions are deducted from their salary each month as part of the PAYE system. They are paid on earnings......

Using a Limited Company to Save Property Tax The analysis of whether it is beneficial for a property investor to use a limited company can be complex and this helpsheet aims to identify some of the key advantages in considering a limited company for this......

Whilst shareholders are the owners of limited companies the job of running them rests with the directors and they must do so for the benefit of the shareholders whilst ensuring compliance with the law. Directors can be liable to penalties if information is not sent......

VAT cannot be recovered on business entertainment expenditure. This includes the gratuitous provision to customers or clients of hotel accommodation, food and drink or tickets to events. If a director or employee entertains a customer or client whilst away from the workplace location, the VAT......

PAYE Problems of Casual Workers HMRC regularly raises questions regarding casual workers and the payment of them (or not!) through the PAYE system. Getting this wrong can cost a lot in the way of arrears of PAYE going back 6 years as well as interest......

The Construction Industry Scheme Special tax rules apply to the construction industry and workers which are detailed in The Construction Industry Scheme (CIS). CIS uses a verification system for contractors to confirm whether a subcontractor should be paid gross or net. Construction Activities The definition......

A Guide to Stamp Duties There are three types of Stamp Duty: Stamp Duty Land Tax (SDLT) – which applies to land transactions Stamp Duty Reserve Tax (SDRT) – which applies to sales of securities on the stock market; and Stamp Duty – which applies......

Corporation Tax Self-Assessment Registration To ensure avoidance of penalties, companies should notify HM Revenue & Customs within 3 months of commencing trading which is normally done at the same time as registering with Companies House. Filing Dates of Returns The corporation tax self-assessment return (CTSA)......

1. Overview Contributions to private pensions can be made free up to certain limits. This applies to most private pension schemes, including: workplace pensions personal and stakeholder pensions overseas pension schemes that qualify for UK tax relief – ask your provider if it’s a ‘recognised......

Which Business Structure Should You Use? This helpsheet gives you an outline of the different business structures you can trade through. Your business format is not set in stone forever and you can change between them. It is fairly simple for a sole trader to......

An Introduction to Self-Assessment Self Assessment started in 1997, the idea being that taxpayers can easily complete their own tax returns. The reality has turned out to not be quite so simple. The tax year runs from 6th April to 5th April in the following......

Start Up Finance will be needed for… Premises Equipment Goodwill if purchasing an existing business Installation of utilities Legal and professional fees Stationery Advertising and publicity Insurance Stock for resale Wages of employees Then as you expand, further finance may be necessary to support any......

CGT and Your Principal Private Residence The sale of an individual’s home is normally exempt from CGT, with neither a taxable gain nor loss arising. This is certainly the case where it has been the individual’s only or main residence throughout the period it has......

The 5 Key Qualities Needed to Succeed in Business Why do some people succeed in business and others not and why are some exceptionally successful. Some of it may be luck but there are common factors in successful business people that would seem to indicate......

Personal Tax – Self Assessment Late Filing The penalties for late Self Assessment returns are as follows: Initial £100 penalty for late filing of the tax return, irrespective of the tax due or if you have paid tax on time. If you haven’t filed your return......

Corporation Tax Late Filing Your Company Tax Return must be filed within 12 months of the end of your accounting period. Penalties for late filing are as follows… £100 for up to three months late. A further £100 penalty if you file your return more than......

This article summarises the main tax late filing and payment penalties. In addition, you should be aware there are penalties for providing incorrect information. As a small business owner you will have to deal with a number of different departments within HMRC. Each department has......

VAT returns are made quarterly in the majority of cases, but there are monthly and annual schemes. You must file your VAT return online by the end of the month plus 7 calendar days of the period end. For example for a quarter ended in......

The Basics of PAYE PAYE stands for Pay As You Earn and is the system used by HMRC to collect income tax and national insurance from employees as well as the employer’s national insurance. The employer makes the necessary deductions from the pay of the......

How to Find Your Best Selling Price The more you can differentiate your products or services from others the wider the range of possible prices you may be able to charge as the customer has little to compare what you are offering against. If you......

Just hoping your customers, contacts and friends will refer customer s to you is not enough. By putting in place proven referral systems you can massively improve referrals to you. To get your referral systems to work follow these guidelines… Make sure you continually let......

Real Time Information (RTI) – A Practical Guide Introduction RTI came into effect from 6 April 2013 for most employers. RTI is mandatory! It is the biggest change to payroll since PAYE (Pay As You Earn) was introduced in 1944. It affects any business running......

The Enterprise Investment Scheme provides for some significant income tax and capital gains tax reliefs for individual investors in unquoted trading companies. There are some very complex conditions which must be met for the tax reliefs to be given, so this helpsheet can only give......

Email Marketing Law Email marketing can be very useful, especially for small businesses because it is a low cost way of potentially reaching a lot of customers. However, spam (the unsolicited sending of emails) and legislation is in place to deal with email marketing. The......

You should put the following on your letterhead and invoices… The full name of the company, normally ending with the word “limited”. The company registration number given by Companies House. The company’s registered office address. Where the company was incorporated – England and Wales or......

How to Choose the Right Accounting Software Keeping your accounts can be a tricky business. It is necessary to do so not only to comply with legal obligations but to help you manage your business. Businesses keep accounts in different ways… Some businesses will get......

The treatment of car motor expenses for VAT purposes can be quite complex. Car Leasing You are normally only permitted to reclaim 50% of the input tax for the cost of car leasing regardless of the price of the car. However this restriction does not......

Here are a few examples of some more off the wall, out of the box type thinking marketing ideas. Try to use them as a basis for your own ideas or as inspiration to come up with your own. Being unusual or eccentric will often......

CGT Entrepreneurs’ Relief Explained Entrepreneurs relief was introduced to help protect entrepreneurs from rises in CGT rates. Entrepreneurs’ relief is available to individuals (or trustees in some circumstances) but not to limited companies. Entrepreneurs’ relief can apply when you sell part or all of your......

Dismissing an employee can be a tricky business and the correct procedures need to be followed. The dismissal must be fair and can include reasons such as inappropriate behaviour or inability to do the job. After one year of service, if the employee is unfairly......

This article summarises the main tax late filing and payment penalties. In addition, you should be aware there are penalties for providing incorrect information. As a small business owner you will have to deal with a number of different departments within HMRC. Each department has......

This is a similar scheme as EIS, but is aimed at smaller companies. The scheme is available from 6 April 2012. Tax Reliefs Income tax relief at a rate of 50% of the amount invested. This is subject to a maximum investment of £100,000 per......

Remove the risk completely Every time a customer buys from you they are taking a risk. If you reduce or eliminate those risks, it makes it far easier for them to do business with you and your sales will soon grow dramatically. If you’re good at......

The Tax Advantages of Self-Employment This helpsheet gives you an outline of what it means to work for yourself as a self-employed person. There are a number of advantages of being self-employed, but you must also comply with various regulations including the tax law. Form......

Working Time and Minimum Wage Regulations The working time and minimum wage regulations apply to nearly all businesses. The working time regulations are normally enforced by the Health and Safety Executive and the Minimum Wage regulations by HMRC and you need to keep records to......

Must all companies have a secretary? No. There is no longer a legal requirement for private companies to have a company secretary unless its Articles of Association explicitly requires the company to have a secretary. What qualifications does a company secretary need? For a private......

Limited Liability Partnerships (LLP) A Limited Liability Partnership (LLP) is a new form of legal entity introduced on 6th April 2001 and is neither a company nor a partnership. It has its own legal personality just like a limited company and has unlimited legal capacity,......

Top Tips to Consider When Starting a Business Here’s our list of the top things to look out for when starting a business. Appreciate that setting up and running a business takes a lot of time and commitment. The rewards can be great but you have......

Travel and Subsistence Expenses The tax treatment of travel and subsistence expenses can be surprisingly complicated. The starting point is that employees are entitled to tax free payments for a business journey. The employer can either pay the employee tax free for the cost incurred......

As many businesses do, you may find yourself operating perilously close to your overdraft limit on an almost daily basis with the stress of cash management taking its toll. You are stressed and you feel like your business cannot grow whilst being restricted by its......

Managing Your Business the McDonald’s Way Wouldn’t it be great if your small business… Worked without you. Only if your business can work without you, will it have any great capital or sale value. Delivered its product or service consistently time and time again to......

A business plan helps you to do all the necessary research to take a business concept and lay out how it is likely to work out in practice. It will be particularly important in order to help attract finance for your business. Financial projections are......

An Introduction to Capital Gains Tax   Capital Gains Tax (CGT) applies when chargeable assets are disposed of and is applicable to individuals and trustees but not to limited companies, although Limited Companies do pay Corporation Tax on the gains that they make. Chargeable assets......

How to Get a Grant A grant is when an amount of money is given to an individual or business to be used for a specific project or purpose. It normally only covers part of the cost or service with the balance paid for by......

Franchising can help to give you the confidence you need to start a business on your own. The most famous franchise is probably MacDonald’s but there are numerous kinds of franchises out there. In relation to any other small business, franchising has proved to be......

Is it worth buying a car through Limited company? What are the advantages and disadvantages? If the Company Buys: On Full Payment If you buy a new car through your company then it will attract a capital allowance. The amount of capital allowance will depend......

Probability Chart of Results of Test Mailings When you undertake a marketing activity that produces a result it would be great to know that if you repeated it, the same result would occur or if you did twice the amount, you would get twice the......

Age discrimination occurs when someone treats a person less favorably due to that person’s age. Age discrimination in employment can affect anybody no matter how old they are. The law applies to discrimination in employment and in training and education. This includes access to help......

This helpsheet provides you with an overview of the information to provide to us to enable completion of your end of year accounts. Of course, the more you do, the less amount of time we have to spend on the routine compliance aspects of your......

This is a brief guide to health and safety law. It does not describe the law in detail, but it does list the key points. The health, safety and welfare at work of your employees are protected by law. You have a responsibility to protect......

What is a dividend? A dividend is a payment a limited company can make to shareholders when it has made and retained sufficient profit. The most common way to pay yourself as the director of your limited company is using a mixture of salary and dividends. Keeping......

The information provided in this article shows how you must account for VAT if you buy-in and re-sell travel facilities as a principal or an undisclosed agent (that is, acting in your own name). TOMS is the special name given to businesses that buy-in and......

From 1 April 2016 existing SDLT residential property rates will be increased by 3% for purchases of additional properties such as buy to let properties and second homes. Broadly, the higher rates will not apply if at the end of the day of the purchase......

In the 2015 Summer Budget [1], the Chancellor announced new proposals to restrict what landlords can claim against tax. As a result, it’s now even more crucial that landlords ensure they understand the profitability of their buy-to-let portfolio, however small or large it is. According......

As I am sure you are aware, George Osborne’s fifth Budget speech took place on 19 March 2014. ...

Repair means the restoration of an asset by replacing subsidiary parts of the whole asset. An example is the cost of replacing roof tiles blown off by a storm. There won’t be a repair if a significant improvement of the asset beyond its original condition......

Should I Register For VAT? A common question amongst small business owners is whether or not they should register for VAT and what is the Vat Threshold? Hopefully this article will help you make up your mind about Vat registration and the benefits of this....

There are a number of capital allowance claims firms targeting businesses which have recently bought or sold commercial property. These ‘experts’ suggest the business needs to pay for a special survey to claim all the capital allowances they are entitled to, and this must be......

Duel Employment Contracts Where a person has an overseas domicile (usually because he was not born in the UK), and works overseas for part of their employment,...

Selling Your Home When you sell your home, any gain you make is tax free if you have lived there for the entire period you owned it. If you occupied the property as your main home...

Income Tax Allowances The standard personal allowance will increase to £10,000 from 6 April 2014, but the age allowances for those born before 6 April 1948 are frozen....

Business Rates From April 2014 businesses will be able to spread the payment of their business rates over 12 months instead of 10. The increase in business rates for the year to 31 March 2015 will be capped at 2%....

NIC Exemption for Young Employees From 6 April 2015 employers will not pay class 1 employer’s NICs on the wages of employees aged under 21, where the employee earns less than the upper earnings limit (£813 per week in 2015/16)....

S34 Income Tax (Trading and Other Income) Act 2005.This page looks at some of the types of expenditure that may be allowable. It should not be seen as an exhaustive list. What is allowable depends on the facts in each case.Expenses broadly fall into two......

If you are not resident in the UK you will still have to declare income you receive from UK sources or gains you make from assets in the UK, and you may have to pay tax on them. If HM Revenue & Customs (HMRC) sends......

On 6 April 2007 a new Construction Industry Scheme was introduced. It is important that contractors and sub-contractors are aware of the requirements...

 The use of mobile technology in the UK beyond the realm of making phone calls is growing, but the number of SME businesses creating mobile solutions is not – read more about the relationship between SME businesses and mobile technology,...

As the application of accounting standards and selection of accounting policies has come to play an ever-increasing role in the determination of a company’s taxable profit over recent years,...

Chancellor George Osborne’s fourth Budget statement was delivered on 20 March 2013 against a challenging domestic and global economic backdrop....

Chancellor George Osborne’s fourth Budget statement was delivered on 20 March 2013 against a challenging domestic and global economic backdrop....

Company car tax rates From 2015/16, two new appropriate percentage bands will be introduced for company cars with a rate of five per cent for cars emitting 0-50 g/km of carbon dioxide and a rate of nine per cent for cars emitting 51-75 g/km of......

VAT From 1 April 2013 2012 Standard rate 20% 20% VAT fraction 1/6 1/6 Taxable turnover limits Registration – last 12 months from 1 April or next 30 days over £79,000 £77,000 Deregistration – next year under £77,000 £75,000 Annual accounting scheme £1,350,000 £1,350,000 Cash......

Stamp duty land tax A measure to amend section 45 of the Finance Act 2003 (transfer of rights) is introduced to support the Government’s anti avoidance strategy with regard to stamp duty land tax (SDLT). The Government seeks to put beyond doubt that a certain......

Key announcements affecting your personal finances. Personal and trust taxes A summary of the income, inheritance and capital gains tax changes that have been announced. Pensions and investments The pension annual allowance has been £50,000 since 2011/12, but it is being reduced to £40,000 from......

Child care Scheme A new childcare scheme is to be introduced to support working families with their childcare costs. For childcare costs of up to £6,000 per year, support of 20 per cent will be available worth up to £1,200. From the first year of......

Reducing the pension annual and lifetime allowances The pension annual allowance has been £50,000 since 2011/12, but it is being reduced to £40,000 from 2014/15. Unused annual allowance from the three previous ‘pension input period’ years (annual periods commencing from when the pension started or......

Income Tax Income tax personal allowance The income tax personal allowance for individuals born after 5 April 1948 is increasing from £8,105 to £9,440 for 2013/14 and further increasing to £10,000 in 2014/15. In subsequent years the income tax personal allowance will be amended by......

A new allowance for employers’ National Insurance contributions and an accelerated reduction in corporation tax to 20 per cent from April 2015 were some of the key announcements for businesses in Chancellor George Osborne’s Budget 2013. They form part of a Budget described as being......

Bank Levy The full rate of the Bank Levy will be increased to 0.142 per cent from 1 January 2014. Foreign currency assets and chargeable gains Legislation will be introduced in the Finance Bill 2013 to simplify the rules for companies making chargeable disposals of......

Corporation tax Year ending 31/3/2014  31/3/2013 Taxable profits: First £300,000 20% 20% Next £1,200,000 23.75% 25% Over £1,500,000 23% 24%   As previously announced, the main rate of corporation tax reduces to 23 per cent from 1 April 2013 and will be further reduced to 21......

The economic background to Chancellor George Osborne’s fourth Budget speech could hardly have been more challenging. After he declared that the economy was “on the road to recovery” in his December Autumn Statement, some significant obstacles appeared along that road. Confirmation that the economy shrank......

What is a registered office (RO) address? All companies must have a registered office, which must be a situated at a physical location in their country of registration. It can be your business address, the address of your accountant or any other address you choose....

This guide explains your tax and National Insurance contributions (NICs) obligations if you provide expenses and benefits to an employee in connection with a change in their main residence....

Whilst Christmas and Christmas parties may now be a distant memory, I thought it would be a good time to clarify the rules for employers regarding the tax aspects of staff parties (which can be held at any time throughout the year), gifts, entertaining and......

HM Revenue & Customs now change, on a quarterly basis, the rates at which business mileage allowances may be paid for cars provided by an employer, but where all fuel is paid for by the directors/employees personally....

HM Revenue & Customs collects repayments on student loans taken out after August 1998. You can find out more about how to repay your loan on the Student Loans Company website....

In very simple terms, tax avoidance is legal, but tax evasion is illegal and you risk prosecution for breaking the law. However, in some sophisticated cases the Taxman has been trying to blur the boundaries and claim some forms of tax avoidance are illegal. A......

Q1: How can I claim repayment upon leaving the UK? (For temporary visitors to the UK only) A1: To enable HMRC to consider any Income Tax repayment that may be due to you please complete form P85....

As Belgium and the UK are both in the European Union VAT Area, there are complicated VAT rules affecting business carried out between the 2 countries. This post outlines the main issues as they apply to a small UK business....

It looks like bad news for over 1,200 Subway franchisees as Sub One Ltd loses its challenge in the upper Tier Tribunal against HMRCs view that sales of “toasted subs” and “meatball marinara” sandwiches are subject to VAT at the standard rate....

IR35 was brought in to prevent the payment of less tax and national insurance by using a personal service company or partnership to provide services through rather than being a direct employee....

Generally speaking an individual is assessed to income tax in the United Kingdom if he is deemed to be UK resident for fiscal purposes. Unlike the United States citizenship is not a basis for levying income tax. Generally speaking a person is deemed UK resident......

Dismissing an employee can be a tricky business and the correct procedures need to be followed. The dismissal must be fair and can include reasons such as inappropriate behaviour or inability to do the job....

From 22 June 2010 the rate of capital gains tax is 28% (18% to the extent any taxable gain falls within the taxpayer’s basic income tax rate band) and this applies to gains on all types of assets,...

You may be aware that in late 2006 the Companies Act 2006 became law although it did not become fully effective until late 2009.  This Act is said to be the largest single piece of legislation ever enacted in the UK with some 1300 sections......

Your business is always at risk from various angles. You need to try to minimize the risk of the following and have procedures and crisis plans in place to deal with them....

A grant is when an amount of money is given to an individual or business to be used for a specific project or purpose. It normally only covers part of the cost or service with the balance paid for by the person receiving the grant....

This help-sheet provides you with an overview of the information to provide to us to enable completion of your end of year accounts. Of course, the more you do, the less amount of time we have to spend on the routine compliance aspects of your......

This blog cover the Employment issues in small businesses. The working time and minimum wage regulations apply to nearly all businesses. The working time regulations are normally enforced by the Health and Safety Executive and the Minimum Wage regulations by HMRC and you need to keep records to......

Q. I want to close down my consultancy company and pay the funds it holds to me as the only shareholder. Should I wait until the new tax year or start the process now?...

Self Assessment started in 1997, the idea being that taxpayers can easily complete their own tax returns. The reality has turned out to not be quite so simple....

All rates in this article are for 2012/13. NIC for Employees For employees Class1 National Insurance (NI) primary contributions are deducted from their salary each month as part of the PAYE system....

You are no doubt aware of the potential advantages relative to the payment of dividends by your company to its director/shareholders.  In particular dividends do not (normally) attract national insurance contributions and whilst tax is due it is not collectable via the PAYE system but......

Whilst shareholders are the owners of Limited Companies the job of running them rests with the directors and they must do so for the benefit of the shareholders whilst ensuring compliance with the law....

The big news for individuals is that the personal allowance will increase to £9,205 from 6 April 2013, so you have to wait another year for that extra tax-free income. The personal allowance has already been increased by £630 from 6 April 2012 to £8,105,......

HM Revenue & Customs now change, on a quarterly basis, the rates at which business mileage allowances may be paid for cars provided by an employer, but where all fuel is paid for by the directors/employees personally.  The rates are designed to reflect changes in petrol/diesel costs and......

As a company owner you can choose how to extract the profits from your company, and by making the right choices you can minimize the tax and NI paid by you and the company.The Taxman would like you to take all the profits in the......

On the 6th April 2006 (A Day) new rules were introduced which were a major overhaul of the pension system, designed to simplify the pension regime and iron out differences between different types of pension arrangement....

As many businesses do, you may find yourself operating perilously close to your overdraft limit on an almost daily basis with the stress of cash management taking its toll....

You may be aware that in late 2006 there was a Special Commissioners decision in favour of HM Revenue & Customs (subsequently confirmed on appeal) in the case of Robert Gaines-Cooper v HMRC which found against the taxpayer’s contentions that he was non UK resident......

There is no longer a legal requirement for private companies to have a company secretary unless its articles of association explicitly requires the company to have a secretary. What qualifications does a company secretary need? For a private limited company, no qualifications are needed but for a......

As you may be aware, from May 2010, HM Revenue are charging penalties for late payment of PAYE and National Insurance Contributions (NICs).  This also applies to student loan repayments and Construction Industry Scheme deductions. ...

Taxpayers who own more than one residence (whether in the UK or overseas) have a number of tax issues to consider in respect of the potential capital gains tax on a disposal of any of those residences. Practical advance planning in this situation can have......

This Blog answer the Question for start up businesses, Not sure what to include in invoice? letter head? emails?...

Q. My employees earn an average of £490 per week, how much more NI will I have to pay for each employee from April 2011?...

There are a wide range of tax issues to consider when developing properties. Here we touch on just a few of them… – Your own home is normally free of capital gains tax when you sell it, but this tax exemption does not apply if......

Sole Trader This is the simplest form of business to start where you carry on business on your own account. You are liable to income tax and Class 4 National Insurance on your profits. You can employ people including your spouse, as long as they......

Are you Safe from the IR35 Regulations As a provider of services through your own limited company you will no doubt already be aware of the IR35 regulations.  The purpose of this letter is to draw your attention to decisions of The Courts over recent......

Can anyone be a director? Generally it is up to the members (shareholderowners) to appoint the people they believe will run the company well on their behalf. The only restrictions that prevent anyone becoming a director are: the person must not have been disqualified by......

Most employers are aware that in certain circumstances a lump sum payment to an employee on the termination of their employment may be tax-free.  Where tax-free treatment is available it is usually capped at £30,000, but unfortunately this has led many employers to believe that......

You may be aware that in late 2006 the Companies Act 2006 became law although it did not become fully effective until late 2009.  This Act is said to be the largest single piece of legislation ever enacted in the UK with some 1300 sections......

A Guide to Stamp Duties There are three types of Stamp Duty: Stamp Duty Land Tax (SDLT) – which applies to land transactions Stamp Duty Reserve Tax (SDRT) – which applies to sales of securities on the stock market; and Stamp Duty – which applies......

As you are probably aware, there have been some major changes to capital allowances claims (i.e. asset depreciation rates permitted for tax purposes) which came into effect on 6 April 2008 and 2009 (1 April 2008 and 2009 for companies) with some minor changes on......

On 6th April 2007 a new Construction Industry Scheme was introduced. Many of the characteristics of the previous scheme were carried over into the new scheme, but there are a number of important changes about which contractors and subcontractors need to be aware.  The major......

As the application of accounting standards and selection of accounting policies has come to play an ever-increasing role in the determination of a company’s taxable profit over recent years, H M Revenue & Customs have recruited significant numbers of qualified accountants with a view to......

Whilst Christmas and Christmas parties may now be a distant memory, I thought it would be a good time to clarify the rules for employers regarding the tax aspects of staff parties (which can be held at any time throughout the year), gifts, entertaining and......

The process by which a business is transferred out of a limited company and carried on subsequently by a sole trader, a partnership or a limited liability partnership is commonly referred to as “disincorporation”.  Usually this is undertaken because the owners of the company no......

How to Save Tax on Company Cars The cost of being provided with a company car has reached extremely high levels and whether to make use of a company car for private purposes now requires careful consideration to minimize the tax costs. There are a......

When your employees go to work abroad you need to think about their potential liability to income tax and national insurance, but be careful because there are different rules for each. Income tax The tax liability will depend on how long the employee is to......

This article summarises the main tax late filing and payment penalties. In addition, you should be aware there are penalties for providing incorrect information....

Accounting Services London Inheritance tax (IHT) is starting to be more of a concern to many people. Most estates (the assets you leave when you die) are still not charged with inheritance tax, as the total value is not high enough, but more estates are......

From 1 April 2010, any VAT registered business with a turnover in excess of £100,000 per annum has to file their VAT returns online and pay any VAT due electronically.  Also any business registering for VAT on or after 1 April 2010 must file their VAT returns online......

Online Accountants – London Accountant The sale of an individual’s home is normally exempt from CGT, with neither a taxable gain or loss arising. This is certainly the case where it has been the individual’s only or main residence throughout the period it has been......

Capital Gains Tax (CGT) applies when chargeable assets are disposed of and is applicable to individuals and trustees but not to limited companies, although Limited Companies do pay Corporation Tax on the gains that they make. Chargeable assets includes all forms of property unless it......

A business plan helps you to do all the necessary research to take a business concept and lay out how it is likely to work out in practice. It will be particularly important in order to help attract finance for your business. Financial projections are......

Many individuals who are self-employed, either on their own account or in partnership, will from time to time consider whether it might be to their advantage to operate as a limited company (usually referred to as “incorporation”).  In most cases careful thought will be required......

Most purchases carry a VAT charge. Value Added Tax (VAT) is levied on most business transactions and on many goods and some services....

The VAT flat rate scheme is designed to make it simpler and quicker for small businesses to complete their VAT return....

Under the cash accounting scheme you account for VAT on the basis of payments you receive and make, rather than on invoices you issue and receive....

The treatment of car motor expenses for VAT purposes can be quite complex....

VAT cannot be recovered on business entertainment expenditure. This includes the gratuitous provision to customers or clients of hotel accommodation, food and drink or tickets to events....

Entrepreneurs relief was introduced to help protect entrepreneurs from rises in CGT rates. Entrepreneurs’ relief is available to individuals (or trustees in some circumstances) but not to limited companies. Entrepreneurs’ relief can apply when you sell part or all of your business, or shares in......

The analysis of whether it is beneficial for a property investor to use a Limited Company can be complex and this helpsheet aims to identify some of the key advantages in considering a Limited Company for this purpose....

To ensure avoidance of penalties, companies should notify HM Revenue & Customs within 3 months of commencing trading which is normally done by means of completing form CT41G....

This helpsheet gives you an outline of what it means to work for yourself as a self-employed person. There are a number of advantages of being self-employed, but you must also comply with various regulations including the tax law....

Special tax rules apply to the construction industry and workers which are detailed in The Construction Industry Scheme (CIS).CIS uses a verification system for contractors to confirm whether a subcontractor should be paid gross or net....

Accountants for LLP A Limited Liability Partnership (LLP) is a new form of legal entity introduced on 6th April 2001 and is neither a company nor a partnership. It has its own legal personality just like a limited company and has unlimited legal capacity, e.g.......

Payroll services London, UK PAYE stands for Pay As You Earn and is the system used by HMRC to collect income tax and national insurance from employees as well as the employer’s national insurance. The employer makes the necessary deductions from the pay of the......

Payroll Services London HMRC regularly raises questions regarding casual workers and the payment of them (or not!) through the PAYE system. Getting this wrong can cost a lot in the way of arrears of PAYE going back 6 years as well as interest and penalties.......

Q. Last year my friend’s company; MC Ltd was having cash flow difficulties, so my company; IQ Ltd paid some the outstanding debts with MC’s suppliers....

Q. I’m worried that the cash my company has on deposit is not covered by the Government’s guarantee for personal bank accounts....

Q. I see that the Chancellor has postponed bringing in a new law to tax family companies who share business profits between spouses,...

Q. My sales have fallen off drastically in the last few months and my customers are getting much more price sensitive. Can I deregister for VAT and so effectively drop my prices?...

Q. I run a restaurant and employ a lot of part time staff. I’ve heard I’ve got to exclude their tips from their wages when calculating whether I am paying the National Minimum Wage (NMW). Is this true? A. No immediate action is required on this. Yes,......

Q. My Uncle has recently died and my elderly father inherited the entire estate of about £400,000 under the intestacy laws, as there was no Will....

Q.I’ve heard on the radio that my small pension is going to be taxed, but I’ve never paid tax on it before. Will I have to pay the tax due for all the years I’ve received the pension in one go?...

Q.I gave a personal guarantee for the overdraft of my property development company....

Q. I’m about to pay a significant initial franchise fee. Will I be able to deduct any of that cost from my earnings for my first year of trading?...

Q. I am about to sell my VAT registered business as a going concern, but the buyer will not take on my VAT number so I will deregister for VAT....

Q. The Taxman has asked me about my rental income, but I’ve never made a profit from my let properties, so do I have to complete his form?...

Q. The Department of Work and Pensions has sent me a pension forecast which shows...

Q. How do I know the VAT number on my suppliers invoice is genuine?...

Q. I own a number of house-boats which are permanently moored and are let as holiday accommodation....

Q. I am about to sell a trailer that has been used by my VAT registered business for a few years. Do I have to add VAT to the price? A. As your business is VAT registered you must add VAT to anything you sell, whether......

Q. I’m selling part of my business, and the buyer has asked for the VAT records relating to purchases and sales made by that section....

Q. One of my employees has died suddenly and I want to make a lump-sum payment to his family. Will this be tax deductible for my company and will the family be taxed on the payment?...

Q. I am about to sign a lease for a new shop, but the landlord wants to charge VAT on the lease rental payments....

Q. I’m a driving instructor and operate through a limited company. The Taxman wants to tax me for using my instruction car and fuel as a taxable car benefit. I don’t think that’s fair as the car is necessary for my business. Is he right?...

Q. I started a new business last year and have only just begun to make profits after a year of losses. Can I set the losses made in the first year against the profits made in the second year?...

Q. Can I treat my buy-to-let property as my main home so it is exempt from capital gains tax?...

Q. I deal in small electronic goods such as Sat Navs, CD-players and DVD players. I heard there was something in the Budget that could affect my business. Can you explain please? A. This is to do with special powers the VATman has to demand from......

Q. I run a building company and need to take on a self-employed worker. He doesn’t have his own van and so I’ve offered to provide him with one as a van is needed for him to do the job. What’s the tax position on......

Q. Can I reclaim VAT on car parking charges without a VAT invoice?...

FAQ’s Q. I’m starting a new business as a plumber and don’t know if it would be a good idea to register for vat. Can you advise?...

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