The Covid-19 pandemic has seen many employees being required to wear personal protective equipment (PPE) at work. The way in which this is provided and the extent that it is needed to enable the employee to undertake the duties of their employment will determine the......

Deadlines are important as they make or break your business.  Did you know that meeting is crucial for your business? Devise new products or services, and improve your customer service and meet your deadlines. You’ll be happy to know that success will come your way.......

Special stamp duty land taxes apply where there are multiple sales or transfers between the same buyer and seller.   Linked Transactions   Where two or more property transactions involve the same buyer and seller, they may be ‘linked’ for SDLT purposes. HMRC may treat......

The Government’s policy to increase the residential stamp duty land tax threshold is there since lockdown. What residential benefits must you expect from the temporary cut in SDLT? You’ll witness an increase in the threshold of £125,000 to £500,00. That was done primarily to make......

The whole world is going through trying times. We’ve seen businesses collapse, economies struggling, and unemployment. Some governments took strong action against unemployment. UK’s Corona Virus Government Contract Jobs Retention Scheme is one of the many heroic actions taken by the UK government.    What’s......

More and more people are shifting to self-employment. After all, who doesn’t love being their own boss? Around 4.96 million people are starting their own business between April and June 2019. That’s because people like the idea of having some leisure time. Working for a......

What’s the first thing that comes to your mind when you think of COVID-19? Unemployment, high mortality rates, depreciating economy tops our minds. Talk about the constant struggle to not get affected. We’ve got three amazing tips for cash flow management during COVID-19. Various communities......

Our London accountant for small business help you with your accounting woes. We further advise you on your business and help you uplift it. We also offer value-added services to a variety of business sectors. London accountants for small businesses are accounting experts and tax......

Landlords that run businesses from home reap rewards and gain financial benefits. Onboard specialized accountants for landlords. Use the extra money you make to offset mortgage repayments. Use the extra cash to renovate your existing properties and rent them out on higher rental rates. To......

Losing your assets is the worst thing your business goes through. So how to keep up with the challenge? Onboard QuickBooks accountants. Manage your finances and save up on taxes. It’s not easy to handle everything at the same time. That’s when you’re in desperate......

Do you want to set up your own business?  What’s stopping you? Work for it. That sounds easy but a lot of hard work goes into it. You’re stuck with a lot of problem-solving for operations and financial management. Involve personal tax accountants to help......

Are you a VAT registered business? If yes, and you want to figure out how VAT is applicable on your food items, this post is for you. Find out what VAT applies to food items.  Our accounting experts dig deeper into what VAT applies to......

In this blog, we will discuss a question recently asked by one of our clients in relation to the Employment Allowance. Who can’t claim the Employment Allowance? Can a Single director of a limited company claim Employment allowances? National Insurance Contributions Act 2014 – Section......

If your company or organization is liable for corporation tax and makes a loss from trading, the sale or disposal of a capital asset, or on property income, you’re eligible for corporation tax trading losses. You get tax relief by offsetting the loss against your......

The Chancellor, Rishi Sunak, announced a new scheme at the end of March to support self-employed people impacted by a coronavirus. It’s about to launch ahead of schedule and we’re writing to you because you might be eligible to make a claim under the self-employment......

When you are a small business or entrepreneur, there are plenty of questions that come to mind. These are how you are doing as a business and how you can improve to expand. You analyze each aspect of your business with a keen eye. You......

Whether you’re a graduate in your specialized field or someone who came out fresh from training.  You might want to take up freelancing for that extra cash. According to a report from Office for National Statistics, freelancers have grown exponentially over a few years from......

To all the individuals and companies who are owning properties, they need to hire a professional accountant to get protection against non-compliance with tax rules. No doubt, becoming a buy-to-let investor is a popular alternative and an appealing option for all the entrepreneurs who want......

One of the biggest troubles of owning and managing a business is having to compute and pay for taxes. With everything you have to worry about when running your operations, you have to factor in the pay cut that goes above your efforts—which can be......

If you are someone who owns a property in the UK and has rented out that property, then you are liable to file a self-assessment tax return. Traditionally, landlords face multiple tax and accountancy issues, which nowadays have become more complex than ever.   We......

Are you searching for Expert Accountants for Buy-To-Let Landlords? Which are based in London?, Accotax, is a specialist accountancy firm that houses one of the best landlord accountants in London who cater to buy-to-let landlords? We prove our dedication to our clients by providing a......

Accounting is paramount in any business process, no matter how big or small. The idea of clearly recording all financial transactions of a company can make a difference in the overall business success. After all, money is its lifeline. Unfortunately, some small business owners tend......

The Optimum Director Salary 2020/21 will be £8,788 per annum, or £732 per month, or £169 a week. For most owners, this is the most tax-efficient rate to pay themselves. If you work with your own limited business, one of the key things of your tax preparation will be to guarantee that you pay the maximum wage and dividend rates for yourself....

Income tax Relief and Allowances enable you to reduce the amount of income tax that you are expected to pay. Income tax exemptions and relief can refer to income from work, self-employment, savings, and retirement, as well as income from land. HM Revenue & Customs......

What’s the Government’s furloughed scheme and how can you get the most out of it? Furloughed schemes are exclusively for companies that’ve been owned or managed previously.   How to Get the Most Out of a Limited Company?   There are over a million sole......

As one of the most essential pieces of financial documentation that British business owners encounter, the self-assessment form is a requirement that any successful professional must complete year after year— but can you possibly let an accountant in London take care of it for you?......

Many small companies are run by just one or two directors and have no other employees. What government financial support is available to the director/shareholders during the Coronavirus crisis? A director or company officer is an employee for PAYE purposes. A director cannot claim the......

Covid-19 has had a big impact. Big corporations and even multi-millionaire companies faced a setback. Packages were announced. The Chancellor himself set out a package of temporary, timely and targeted measures to support public services, people, and businesses through this period of disruption caused by......

On 17 March, the Chancellor announced an unprecedented package of government-backed and guaranteed loans to support businesses, making available an initial £330bn of guarantees – equivalent to 15% of GDP. This was on top of a series of measures announced at Budget 2020, the government......

I have staff off due to coronavirus (COVID-19), what should I pay and what can I reclaim? We are receiving an extremely high number of calls in regards to paying employees statutory sick pay if they are off work due to coronavirus. We have put......

You need bookkeeping for your business to keep financial transactions updated and ready to be used whenever it is wanted and to maintain the financial health of your business, bookkeeping plays a very essential role. It ultimately empowers business owners to make informed decisions about......

                                                                           Tax Rates 2020 Income tax rates: England and......

Just one month into his new role as Chancellor of the Exchequer, Rishi Sunak has delivered his first Budget Statement promising ‘historic’ investment in roads, railways, broadband and scientific research, as the government tries to deliver on its promise to level up the UK. Ahead......

If you are looking for tax advice in the Knightsbridge area for your business, you need to look for an accounting firm that can provide tailor-made services to different clients. Accotax is an accountancy firm that you can rely on for great tax, accounting, finance,......

It doesn’t matter what type of small business owner you are when you join us at Accotax, our professional Xero certified accountants are ready to help you grow through the Xero platform and help you access all the features and benefits the software has to......

Never miss out on your deadlines. Before late filing penalties get to you, make sure that you’re avoiding them. If you’re not able to do that on time, chances are that you’ll be charged a penalty by HMRC. Let’s roll out the late fee structure......

If a house transferred between spouses or between civil partners, of each other. And who are living together? whether by sale or by gift, the period of ownership of the transferee treated by TCGA 1992 s222(7). (a) as beginning at the beginning of the period of ownership of the transferor. This also applies where the house transferred from one to the other on death....

IHT is a tax on the value of the estate at death but also on chargeable transfers made with various reliefs. When discussing matters, care is being required for both lifetime and after death. Consider using these six tips to learn out "how to avoid inheritance tax"....

The difference between the VAT on Reimbursement or VAT on disbursement has a significant point of view as reimbursements are subject to VAT, while disbursements are outside the scope of VAT....

Always look at the facts of any deductibility of expenditure and fully explore the reasons for any claim as in Daniels v HMRC where deductibility of an exotic dancer's clothing and underwear and other items, including cosmetics and hair extensions, was under scrutiny....

Buying a house, Remortgaging, or applying for a UK visa for your loved one can be a stressful process. To its Visa, Mortgage, or loan, you will need SA302 from HM Revenue & Customs. Back in the days, would need to call the HMRC and ask for them to send you a printed copy for your lender or home office. This cannot email or fax so relies on the HMRC post, which can take anything up to two weeks....

Are you thinking of giving Christmas gifts to your loved ones? With Christmas less than a week away, you may now be panicking about what to give your loved ones. Rather than join the chaos of the last minute Christmas shoppers, you might consider giving......

Tax regulations on entertainment cost deductibility are strict and sometimes confused. The fact that the cost paid for business reasons does not make it exempt. Subject to certain limited exceptions. No deduction allowed for the business entertainment and gifts in calculating taxable profits....

From 6 April 2020, the way in which carbon dioxide emissions for cars measuring change. Moving from the New European Driving Cycle (NEDC). It utilizes the WLTP for cars registered on April 6, 2020, or after April 6. The appropriate percentages for cars registered on......

There are two different ways of owning property– as Joint Tenants v Tenants in common. The way in which the property is own determines exactly who owns what. Thus, and also what happens when one of the joint owners dies and how any income tax.......

A limited liability partnership (LLP) is similar to an ordinary partnership in that a number of people or limited companies join together and share the costs, risks, and responsibilities of the business. They also take a share of the profits and pay income tax and NICs on their share of the partnership profits....

Landlords will also use their car in Property Business. Where they do so, they are able to claim a deduction for the costs that they incur.   Using mileage rates   Where a landlord uses their car for business purposes. The easiest way to work......

Is interest on Loan Allowable expense? Subject to certain conditions and restrictions. Tax relief will generally be available for interest paid on loans to, or overdrafts of. A business in the form of a deductible expense. Different rules for loan interest relief apply to smaller......

tamp duty land tax (SDLT) is on residential property. Which applies to land that forms the garden or grounds of the property. To ensure that the right rate of SDLT applied there, it is important to learn. Whether any land purchased with a property makes up its garden or grounds....

There is still plenty of uncertainty about potential cuts in pension tax benefits as things stand at present. Paying into a pension generally remains a tax-efficient way of saving for old-age. Given that there may well be future changes in this area....

Brexit is the scheduled withdrawal of the United Kingdom (UK) from the European Union (EU). Following a June 2016 referendum, in which 51.9% voted to leave. The UK government announced the country’s withdrawal in March 2017. Starting a two-year process that was due to conclude......

At the end of the financial year for many businesses, employees may be fortunate enough to think of a bonus. If this is the case, then the tax accountants of London will review things beforehand to see if there is a risk of suffering effective......

What is the Best time to Setup a Limited Company? A limited company is a private company whose owners are responsible for its debts. Only to the extent of the amount of capital they invested. Corporation tax rates for most companies have fluctuated between 19%......

Record keeping is the process of recording transactions and events in an accounting system. For tax purposes, good record-keeping is essential. Complete records are required to provide accurate details of taxable income. Aside from the risk of paying more tax than is necessary, landlords failing to......

The domestic reverse VAT charge for building and construction services was due on  1 October 2019. Early September marks the start date being back one year. The charge will now apply from 1 October 2020.   Who will the Reverse VAT affect?   The charge......

Private residence relief shelters gain on sale of residence from the capital gains tax, the property has been owner’s only/main residence. Where a property has been an only or main residence at some point, the final period of ownership (currently 18 months but reducing to......

What Happens If you Die Without a Will? Will is the best way to ensure that your estate passes on in accordance with your wishes. When someone dies without making a will, it’s because of sudden death. Where there is no will, the estate divides......

An economic operator registration and identification (EORI) number is needed for UK businesses. This helps with trade with the EU after the UK leaves the EU.   If there is a no-deal Brexit   If UK leaves EU without a deal, EORI number beginning with......

For capital gains tax purposes, not all chattels are equal. In some cases, it is possible to realize a profit on the disposal of a chattel and enjoy that profit tax-free. In other cases, the gains tax must be paid. It all depends on whether......

How to calculate the class 4 NIC liability for self employes? The self-employed pay two classes of National Insurance contributions – Class 2 and Class 4.   What is Class 2 National Insurance Contribution:   Class 2 contributions are weekly flat-rate contributions which provide the......

Capital allowances are the practice of allowing a company to get tax relief on tangible capital expenditure. You allow expenses against its annual pre-tax income.   Capital allowances on worthless assets and negligible value claims   The value of the asset becomes negligible where an......

Residence transfer between spouses     If a residence is transferred between spouses or between civil partners, the period of ownership of the transferee begins at the start of the period of ownership of the transferor. When a residence is transferred between spouses or civil......

The guidance around the (TOMS) Tour Operators Margin Scheme (VAT Notice 709/5) improved, including Paragraph 6.1, which details how to work out the selling price under the Tour Operators Margin Scheme.   TOMS states that the selling price includes:   Total VAT-inclusive selling price of......

What are the eligibility criteria for a vat refund for DIY builders? You’re eligible to apply for VAT refunds on building materials and services if you build your own house or convert an existing property into a home.  You do not need to be VAT......

All the tax hikes have put all the Landlords in the hotspot.  From 6 April 2020, letting relief – a valuable capital gains tax relief is available where a property has been the owner’s only or main residence let out. You can always count on......

From a capital gains tax perspective, there are significant tax savings to be had if a property has been the owner’s only or main residence. The main gains are where the property has been the only or main residence throughout the whole period of ownership.......

Tax credits are benefit payments. They’re paid to people in work that are low income or have children. There are two tax credits – working tax credit (for those working but on a low income) and child tax credit (for those on a low income,......

How to avoid risks in the director’s loan account? HMRC produce a series of toolkits which set out common errors that they find in returns. Here are some steps to avoid to fall off in the pit. Although the toolkits primarily aim at agents, they......

Don’t allocate specific cars to particular employees. Some employers like having a carpool. Have a number of cars available to everyone. From a tax perspective, QuickBooks accountants, have analyzed how to make carpool work for you.   The conditions   There are five conditions that need......

Fixed fee accountants make use of statutory exemptions for certain offers. This is the perfect opportunity to extract funds from a family company. Fixed fee accountants help you trigger a tax charge as per fixed fee accountants....

Are you an accountant dealing with day to day accounting issues? Our business profits toolkit outlines some great benefits for small and medium-sized businesses. You’ll be needing the help of our high-end accounting software to save your business. Here are some common mistakes you must......

If you’re a working parent, chances are that you’re looking to figure out ways to get compensated for child care. Here’s a quick guide to help you get the right compensation.    What’s Government’s Childcare Scheme?    Working parents receive a tax-free top-up from the......

Taxpaying becomes a headache for most of the business owners.  The time for year-end tax is just around the corner. How do you want to overcome stress? Talk to our chartered accountants. Stop losing your mind. Talk to our London accountant instead. Head to your......

Are you done with rejections from the HMRC for your land?  Here’s how you avoid landlord tax return errors.    Use the property rental toolkit to avoid landlord tax return errors   The best thing to happen to you would be the toolkit provided by......

How to make sure that you’re availing all the inheritance tax benefits? These are all the benefits you can avail even when you’re not married. It’s beneficial to consider the combined position, rather than dealing with each individual separately. Do you want to learn about......

Are you a landlord who spends more than six months abroad, but has to take off your property within the UK as well? You’re probably here to find out more about the non-resident’s landlord scheme.    How to Make the Most Out of  Non-residents landlord......

No matter what business you’re part of, which boss you’re working for, or what tasks are given to you, you’ll have to shoulder your own expenses for events or other things related to your job from time to time for tax relief. This isn’t unusual......

As long as HMRC can be satisfied that a business is being run on a commercial basis with a view to making a profit, they will usually allow taxpayers to claim tax relief for a trading loss in one tax year against other taxable income......

The bookkeeping process is one of the most integral parts of any company, as it’s the key to ensuring that it has a complete record of every transaction. Without a conclusive bookkeeping record, you won’t be able to track your spending and you won’t have......

Let’s Talk About Simplified Expenses for Small Businesses. Certain unincorporated small businesses choose to use a ‘cash basis’  for calculating taxable income. It’s under which participants are taxed on the basis of the cash that passes through their books, rather than being asked to undertake......

The normal due date for a self-assessment return was filed online is 31 January after the end of the tax year to which it relates. This means that self-assessment tax returns for 2017/18 should have been filed online by midnight on 31 January 2019, and......

From 6 April 2020 the off-payroll working rules that have applied since 6 April 2017 where the end client is a public sector body are to be extended to large and medium private sector organizations who engage workers providing their services through an intermediary, such......

A landlord will usually take a deposit from a tenant when letting a property to cover the cost of any damage caused to the property by the tenant. Where a property is let on an assured shorthold tenancy, the tenants’ deposit must be placed in......

Tax-Free mobile phones are ubiquitous – they are also subject to a tax exemption which enables employees to enjoy a mobile phone provided by their employer without suffering a benefit in a kind tax charge. However, as with all exemptions, there are conditions to be......

Is it possible to manage a rental business from home? A landlord will often manage their property rental business from home, and in doing so will incur additional household expenses, such as additional electricity and gas, additional cleaning costs, etc. As with other expenses, the......

A lot of work goes into a startup business. Regardless of where you establish the foundation of your company, it’s important that you do not disregard your finances. Accounting is a major area of business, just as marketing, product development, and logistics are. You need......

A person may own a property that let out as part of a partnership business. It can happen if the individual is a trading partner or a professional partner who also lets out some of his land and buildings. A less common scenario is, the......

The Government is keen to encourage drivers to make environmentally friendly choices when it comes to choosing a car. As far as the company car tax market is concerned, tax policy is used to drive behavior, rewarding drivers choosing lower-emission cars with a lower tax......

The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000 from 6 April 2018. The cut is likely to have a significant impact on employees and directors of small businesses who receive both salary and dividend......

With Concern over climate change hitting headlines, it could be apt that the company car tax program aims to promote ‘good’ choices; and rewards those with reduced tax bills that opt for affordable zero-emission vehicles. The new taxation regime for company cars has been around......

Accounting is an important part of any business, but the financial demands for each company are different. It’s important for small businesses to manage their finances more efficiently than larger companies because they don’t have as much capital. There is some documentation required by the......

The word “chartered accountant” gives off a certain vibe that often makes people think of pricey services that they could never afford. In reality, however, the costs of hiring a chartered accountant are trivial compared to how much money you can save. The prospect of......

Most people associate the word “accountant” with a financial accountant. The truth, however, is that financial accountants make up only one of the many kinds of accountants that exist in the UK. These professionals work with managerial accountants. Managerial accountant gathers and processes data that......

Money is the primary vehicle as to why a business exists. Companies are there to earn and generate a profit. That’s why communicating financial data is paramount in any given business. That is where the principle and use of accounting come in. Accounting is said......

When starting a business, it is imperative that you completely understand all business functions. While the idea of going through countless piles of financial documents is intimidating and overwhelming, accounting is still necessary to provide entrepreneurs with a clearer understanding of their business’ success. So you......

From 2013-14 onwards, businesses may use a fixed rate per business mile to compute their vehicle expenses under the new simplified expenses rules. They can use this method of relief as an alternative to keeping detailed records of actual expenditure. The fixed-rate deduction covers expenditure......

In any given business, a systematic process of recording, measuring, and communicating financial information and transactions should be in place. That’s where the concept of accounting comes in. Accounting is essential in regulating business cash flow, taxes, and everything else that has to do with......

Having an accountant for your contracting business can make your life much easier. In addition to saving your time, an accountant can also handle your financial and tax responsibilities in a professional manner as well. Here is more detail about Contractor Accountants in London. Regardless......

Cash basis for landlords – when does it apply? The cash basis simply takes account of money in and money out – there is no need to worry about debtors and creditors and prepayments and accruals. Income is recognised when received and expenditure is recognised......

As the dust settles on the January tax rush, we can now look forward to the rest of 2019, and help our clients make it an even better year for their businesses.  As of 6th April, we enter a new tax year. This means we must......

The ‘settlements’ income tax anti-avoidance rules found in ITTOIA 2005. The principal sets of rules are the ‘revocable, or settlor interested’ settlement rules (ITTOIA 2005, s 624), and the ‘settlements on minors’ rules (s 629). To these rules, the term ‘settlement’ is a lot wider......

Overpaid tax? How to claim it back?   There are various reasons why you may have paid more tax than you needed to for a year. For example, if you only worked at the start of the year, you may not have received all of......

Chancellor Philip Hammond has delivered his 2019 Spring Statement to the House of Commons. A Written Ministerial Statement (WMS) provides more detail on some of the announcements in the Spring Statement and sets out details of other forthcoming government policies.  Mr. Hammond opened his Statement......

There are various exemptions and potential exemptions, which make it possible to make gifts free of inheritance tax. Making gift tax free is a useful way to reduce the value of your estate. Ultimately the inheritance tax may be payable on gifts. What counts as......

 For at least 20 years making Tax Digital (MTD) is the most fundamental change to the tax administration system. Essential elements for businesses Paper records will no longer be sufficient It will become mandatory for almost all businesses and landlords (self-employed, partnerships, limited companies, and......

Based on recent years, HMRC will potentially issue at least 1 million late filing penalties.  It’s important to stay ahead of the game.  In terms of advising clients that fail to meet the filing obligation, you’ll be able to address disputes with HMRC. Finance Act......

Beware tax scams HMRC regularly warn taxpayers to be alert to fraudsters purporting to be from HMRC. Recently, they announced that in the last year they deactivated more than 20,000 fake HMRC websites, an increase of 29% on the previous year. HMRC have also called......

Many company owners work from home. This note looks at how you may obtain tax relief on the cost of creating an office at home. If you are planning to convert the spare room into an office, you should read this article. A director can......

Partnership income is computed for the whole partnership by reference to the various sources of income for each accounting period. However, the legislation also says that for each tax year in which a firm carries on a trade. Each partner’s share of the firm’s trading......

A tax investigation costs you money even if you’ve done nothing wrong.   HMRC FACTS £33 Billion is the estimated tax gap between what HMRC should collect and what it does collect. £17 Billion is attributed to Small Businesses (£14bn) and Individuals (£3bn). Tax and VAT......

From 1st January 2019, an EU wide change to the VAT place of supply rules will be implemented.  This will affect Vat MOSS registered businesses that are established in the EU.      What is changing?   An £8,818 annual threshold (total value, exclusive of VAT) for......

How do you pay tax on crypto currencies? Are cryptocurrency or crypto-asset gains or profits taxable? Can you obtain tax relief if you make losses on Bitcoin? How do you tax Ethereum profits? Benefits on transactions in crypto assets, bitcoin are potentially taxable in the......

After several recent tribunal cases on the subject HMRC have amended its guidance about whether a director has to file a tax return. The guidance now states that where all of a director’s income is taxed at source and there is no further tax to......

Many small businesses, whether incorporated or not, pay family members for working for the company. However, as a recent case shows, it is easy to make mistakes which can prove costly. The case in question, Nicholson v HMRC (TC06293), is by a sole trader to......

Landlords in the UK with an unincorporated property business can claim a mileage allowance to reduce the tax on property. The mileage allowance is in the form of a deduction in transport expenses, which can be used as an alternative to capital allowances based on......

The steady increase in house prices in the UK have made owning a property increasingly difficult. That’s why a lot of individuals jointly own properties to earn rental income. Rental incomes are subject to tax. Due to rising house prices; joint ownership of wealth is......

The UK government had introduced the IR35 tax legislation in 2000. The purpose of introducing the tax legislation was to determine the self-employment status of independent contractors. It was introduced to catch individuals who were gaming the tax system to avoid taxes. A contractor who......

The increase in self-employed individuals is one of the most remarkable stories the British economy has to offer. There’s a 40 percent increase in solo traders since the past two decades.  Today, around one in six individuals in the UK are self-employed. If you’re one......

Setting up a limited company has many benefits. The foremost benefit is that you won’t be personally liable for debts and other liability incurred by the company. Moreover, you will be able to raise a large amount of capital to finance the expansion activities of......

Starting a business is indeed challenging. However, the rewards are far greater that makes the endeavor well worth it. If you blend your vision with persistence and hard work, there is nothing that can stop you from making your startup a success. In this post,......

Q: I am an IT consultant, operating through a VAT registered UK company. I am supplying consultancy services to another UK IT business. I have incurred hotel, travel and meal expenses, and charging these on to the company I am supplying services to. Can I......

To help you avoid making mistakes when filing VAT returns, here we have compiled a list of 7 common VAT mistakes that you should avoid at all costs. Many businesses make mistakes when filing VAT returns. This is understandable since the UK VAT system is......

A new nil rate band was introduced in April 2017 for inheritance tax purposes in the UK. Known as the Residence Nil Rate Band (RNRB), it could save direct descendants of married couples thousands of dollars in inheritance tax. In this post, you will know......

Individuals and companies who own properties across the UK can benefit from hiring specialized property accountants. There are many reasons why housing associations, developers, letting agents, and property owners should hire landlord accountants. Seeking the advice of property accountants will help protect against non-compliance with......

Tax Saving Tips for Small Business Saving money on taxes is an effective way to retain maximum business profits. There are many strategies that can help a company to reduce taxes. In this post, we have listed six tax saving tips for small limited companies......

Starting a business is not an easy prospect, and making sure that it succeeds is an even harder one. You have to look at many different things to ensure that your startup is successful. What separates successful companies from unsuccessful ones is the attitude and......

The number of self-employed individuals has increased in the UK. A large number of individuals — 4.8 million according to the latest UK Labour Market report— claim to be self-employed. Individuals working for themselves in any profession, trade, or vocation need to get the basics......

HM Revenue and Customs (HMRC) rolled out IR35 reform in April 2017. The reform initially applied to contractors working in the public sector. However, recently the HMRC has decided to extend the tax reform to the private sector, and it’s expected to be implemented in......

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. Levy Value Added Tax (VAT) 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’......

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......

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 providing a company car is touching extremely high levels. Moreover, to make use of a company car for private purposes now requires careful consideration to minimise the tax costs. There are a number of factors that......

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......

There are many reasons why a company is dissolved. The reasons vary, ranging from insolvency to simply have come to the end of its useful life. It is essential that the correct advice is given by company’s advisers and correct decisions are taken by directors.......

Section 29 Tax Management Act (TMA) 1970 gives power to HMRC to make a discovery assessment.   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 that there is......

With April fast approaching, your clients need to be aware of the changes in statutory pay rates and employment law changes that are set to come into force. April brings several developments altering the landscape of employment law, particularly in employee wages and other monetary......

Summary   Chancellor Philip Hammond said it would be a short, snappy affair while delivering government’s first Spring Statement to House of Commons. This was indeed to be the case – it took just 30 minutes to cover the key points. The statement focused on......

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......

National Insurance – Your Way Around the Maze   All national insurance rates in this article are for 2018/19. NIC for Employees   For employees, Class1 National Insurance (NI) primary contributions deduct from their salary each month as part of the PAYE system. Their pay......

Directors Responsibilities   Whilst shareholders are the owners of limited companies, the job of running them rests with the directors. They must do so for the benefit of the shareholders whilst ensuring compliance with the law. So, what are the directors’ responsibilities? Directors’ responsibilities can......

Recovering VAT on business entertainment expenditure is not possible. 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......

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

A Guide to Stamp Duty   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......

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......

A  private pension is a plan into which individuals contribute from their earnings, which then will pay them a private pension after retirement. 1. Overview   Contributions to private pensions can be made free up to certain limits. This applies to most private pension schemes,......

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......

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......

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......

When you sell your house (‘main house’ or ‘private house’) you do not have to pay CGT on the income. Because you lived there for the whole ownership period as the gain is tax-free. The relief is subject to the fulfilment of certain conditions. Here,......

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......

Personal Tax Return Penalties- 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......

Corporation Tax Late Filing   Your Company Tax Return must file 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......

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......

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......

Introduction   Real-Time Information came into effect from 6 April 2013 for most employers. Real-Time Information (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 a PAYE scheme for......

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 that must meet for the tax reliefs given. So this helpsheet can only give a brief overview......

Many companies concentrate on survival throughout the first few years of operation. Prioritizing your business growth, however, is one of the best ways to improve the chances that your company will not only survive but will also lead to your economic prosperity and a prosperous......

You should put the following on your letterhead and invoices:   The full name of the company, normally ending with the word “limited” should be added on letterhead. The company registration number is given by Companies House should also be placed on the letterhead. The......

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......

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......

Below are some examples of more ideas for marketing off the wall, out of the box of thought. 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 pay......

CGT Entrepreneurs’ Relief Explained   Entrepreneurs relief introduced to help protect entrepreneurs from rises in CGT rates. The 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......

As a small business owner, you will have to deal with a number of different departments within HMRC. Each department has different forms to complete with different deadlines and different penalties should either your submission or payment be late. The following is a quick guide......

The Seed Enterprise Investment Scheme (SEIS) provides investors with fantastic tax-efficient incentives in exchange for investment in the UK small and early-stage startups. Through encouraging creative business and entrepreneurship, SEIS was intended to stimulate economic growth in the UK.  This is a similar scheme as......

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......

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 tax advantages to being self-employed. However,  you must also comply with various regulations including the tax......

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......

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......

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

Why you require an accountant for a new business?   An accountant for new business plays a vital role in running the business. The accountant helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which......

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 in stress and you feel like your business cannot grow whilst being restricted by......

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......

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 discard of and is applicable to individuals and trustees but not to private companies, although private companies do pay Corporation Tax on the gains that they make. Chargeable assets......

How to Get Grants   Grants are when an individual or business receives an amount of money 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. There......

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

Is it worth buying a car through a 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......

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......

Age discrimination occurs when someone treats a person less favorably due to that person’s age. Same way, in the workplace there is employment age discrimination. Age discrimination in employment can affect anybody no matter how old they are. The law applies to discrimination in employment......

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 laws. It does not describe the law in detail, however, it does list the key points. Law protects the health, safety, and welfare at work of your employees. You have a responsibility to protect your employees......

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

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......

This article explains the different addresses a business may need or use.   1. Registered Office Address London:   A registered office address is a legal requirement of all types of limited companies incorporated in the UK. The address is provided to the company’s house,......

From 1 April 2016 existing SDLT residential property rates will increase by 3%. This rate applies to the purchases of additional properties such as buy to let properties and second homes. Higher rates will not apply at the end of the day purchase transaction in......

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. According to the National Landlords Association, 31%......

Repair means the restoration of an asset by replacing subsidiary parts of the total asset. An example is a 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......

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, VAT Advantages & Disadvantage....

There are several capital allowances claim 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 capital allowances on the fixtures. This must take place quickly to claim all the......

Duel Employment Contracts   Where a person has an overseas domicile (not born in the UK) and works overseas for part of their employment. It has been common practice to set up two parallel employment contracts for that person (dual employment contracts). One contract would......

Capital Gain Tax is that tax which you pay on the profit you get after selling/disposing of your property. The property includes buy-to-let properties, lands, business premise, any other kind of property. Capital gain is the amount you pay on the profit you get after......

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. Allowances for 2014/15 are The Personal allowance (born after 5 April 1948): £10,000 Personal allowance (born between 6 April 1938......

Small business tax changes 2014/15 bring major changes in tax policies and a sign of relief of small business owners. The government decided to cut down the tax on business and personal in order to help the business grow and bring in more revenue.  ......

The Autumn Statement newsletter covers the updates made under the government economic plan. We have covered topics of NIC, sick support, company fuel tax and share schemes.   NIC Exemption for Young Employees   From 6 April 2015 employers will not pay class 1 employer’s......

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......

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......

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 well as why mobile......

As the application of accounting standards and selection of accounting provisions 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 2013/14 statement was delivered on 20 March 2013 against a challenging domestic and global economic backdrop. We have summarized the main points in our Budget Summary Small Report 2013/14 article.   Employment Allowance   The big news for employers is......

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 percent for cars emitting 0-50 g/km of carbon dioxide and a rate of nine percent for cars emitting 51-75 g/km of carbon......

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......

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......

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 percent 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......

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......

A new allowance for employers’ National Insurance contributions and an accelerated reduction in corporation tax to 20 percent 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 for......

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

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 percent from 1 April 2013 and will be further reduced to 21 percent......

The economic background of 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 with that road. Economic and Fiscal Update......

What is a registered office (RO) address?   All companies must have a registered office, which must be 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. (Relocation Expenses) HMRC treats different types of employer support for an employee’s relocation differently – there’s......

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 about the tax aspects of staff parties (which can hold at any time throughout the year), gifts, entertaining, and other......

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 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....

Tax Evasion vs Tax Avoidance: 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 liability is the cumulative amount of tax debt owed to a taxing agency, such as the Internal Revenue Service ( IRS), by a person, organization, or other entity. In other words, that is the cumulative amount of tax that you asked to pay to......

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....

Toasted subway sandwich fans will now have to pay vat on subway sandwiches From now on after the vat ruling.. It looks like bad news for over 1,200 Subway franchisees as Sub One Ltd loses its challenge in the upper Tier Tribunal against HMRC’s view......

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....

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 or the employee can claim for tax relief on any shortfall through their tax return....

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

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....

You may be aware that in late 2006 the Companies Act 2006 became law. Although it did not become effective until late 2009.  This Act said to be the largest single piece of legislation. Ever enacted in the UK with some 1300 sections and 16......

Your business is always at risk from various angles. You need to consider the risks below and have policies.  Contingency plans in place to tackle them....

A grant is for a person or company to use for a particular cause or function where a sum of money provided. It only covers part of the cost or service with the balance paid for by the person receiving the grant....

Limited company accountants 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 affairs....

This blog covers Employment issues in small business. The working time and min wage regulations apply to all businesses. The working time regulations enforced by the Health and Safety Executive. Moreover, the Min Wage regulations by HMRC. Moreover, you need to keep records to show......

Self-assessment began in 1997, with the idea. That taxpayers can 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 salary or dividends by your company to its director/shareholders. In particular, dividends do not attract national insurance contributions. So, while tax is due it is not collectible through the PAYE method.......

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. ...

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 arrangements....

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 be restricted by its......

In late 2006 there was a Special Commissioner decision in favor 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 a non-UK resident and domicile....

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 this is where accounting software steps in....

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

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. ...

What is private residence relief?   Private residence relief allows homeowners to sell their homes without being liable for any capital gains tax on property profits. It may also help you reduce your capital gains tax liabilities when selling a second home or part of......

What is property development?   Property development is a business process. It encompasses activities ranging from renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others. What are the issues?   There is......

Limited Company and Sole Trader   This is the simplest form of business to start where you carry on business on your own account. Whether you are a sole trader or own a limited company. You are liable to income tax and Class 4 National......

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......

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

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’s usually limit at £30,000. Employers believe that all payments compel to employees in these circumstances will be tax-free up to......

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......

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). Minor changes on 6 April 2010 and 2011 (1 April......

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 and CIS issues about which contractors and subcontractors need to be......

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, HM Revenue & Customs have recruited significant numbers of qualified accountants with a view to ensuring......

Christmas parties are no longer a forgotten story. It’s always a good time to clarify the rules for employers regarding the tax aspects of staff parties. Talks about gifts, entertaining, and other tax-free gifts, and awards. Any non-taxable benefits.   What Non- Taxable Gifts you......

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......

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......

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

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 being dragged into......

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......

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 primary residence throughout the period that is owned.  If owned prior to 31......

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

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

Many individuals who are self-employed, either on their own account or in partnership. Considers from time to time about transferring the business to a limited company.  In most cases, careful thought will be required to consider the advantages or disadvantages of this step. Even when......

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....

The main benefit VAT Cash Accounting Scheme is that you don't have to pay VAT on invoices you have issued until your customers pay you.  Although it also means you can't reclaim VAT on purchases until you pay your suppliers. You get instant bad debt relief since no sales tax is due if no payment is made....

VAT on Entertaining Expenses can not be recovered. In this article, we have discussed VAT on entertaining expenses that are incurred by the business organization when the business held a party or other such activity for their employees....

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....

The analysis of whether it is beneficial to use a Limited Company to Save Property Tax can be complex. This helpsheet aims to identify some of the key advantages of considering a Limited Company for this purpose....

To ensure avoidance of penalties, companies should notify HM Revenue & Customs about corporation tax return 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 tax advantages of self-employment,  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,......

Payroll services London, UK   PAYE stands for Pay As You Earn. It 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......

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......

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