The IR35 changes will result in many contractors exiting this sector and seeking full time permanent employment. As a result their Limited Company needs to be finished up and closed down. For most with very straight forward affairs this will be a very simple process and will be cheap to do. For some, and to maximise the tax benefit of Entrepreneur’s Relief, the close … [Read more...]
Self Assessment Tax Due Shocker – How much?
Each year as Self Assessment Tax Returns are prepared and tax calculations made gasps of “HOW MUCH” can be heard around the country. Why is your tax bill a shock? It never ceases to amaze me that many self employed are shocked by their tax bill with little understanding of how much profit (income less costs) they’ve made in the year. Understanding your finances and … [Read more...]
What Dividends do you put on your Self Assessment?
If you operate your business via a Limited Company you’ll likely receive remuneration for your efforts via a salary and dividends. As well as doing all of the filing of accounts and Corporation Tax Returns for your Limited Company, if you have untaxed income such as Dividends upon which Dividend Tax is due, you will need to complete a Self Assessment Tax Return. What is the … [Read more...]
Can I claim for my clothing?
Emily Coltman from FreeAgent guides you through if you’re able to claim your clothing costs through your business. This blog has been provided by FreeAgent. View the full image at FreeAgent … [Read more...]
HMRC call Accountants Agents – very 007!
There are many things that HMRC do which brings confusion to those that have to deal with them. One of them is to call accountants Agents. An Agent Obviously HMRC are using the word Agent in its true meaning; an Agent is someone who acts on behalf of another person. In reality you can ask anyone to act on your behalf when dealing with your tax affairs; an … [Read more...]
Nerdy bit – a brief introduction to double entry in less than 600 words
The classic joke amongst accountants is that “Accountants never retire they just become unbalanced”. I say joke – as a comedian I make a very good accountant. Jokes aside the whole system of accounting is based upon a system of double entry bookkeeping where for every debit there is a credit meaning that the books always balance. It’s a neat, tidy and ordered method that … [Read more...]
How to reduce a silly amount of share capital
Enthusiasm may have got the better of you when you formed your limited company resulting in an enormously silly amount of share capital being set up and allocated to you. Statement of Share Capital When you form a company you provide a statement of share capital which details the shares that have been issued to, what is known as, a subscriber or shareholder. The statement … [Read more...]
How to extend your filing deadline HACK – Limited Company
Accounts for a Limited Company have to be filed at Companies House 9 months after the end of the financial year - unless it’s the first year when the filing deadline is 21 months after the date of incorporation. Often this is sufficient time to get things in order, do the necessary bookkeeping and file the accounts at Companies House. However sometimes people find … [Read more...]
8 top tips for your self employed tax return
Completing your self employed tax return can be a bit of a pain at times. Here’s some quick tips to make the whole process a little easier. £1,000 registration limit If your income from your business is £1,000 or less, under the Trading Allowance rules, you do not need to inform HMRC that you’re self employed. Trading Allowance rules instead of recording costs For … [Read more...]
Limited Company – How to calculate working from home expenses
Emily Coltman from FreeAgent explains how to calculate the cost of using part of your home as your office, if you are a director of your limited company. This blog has been provided by FreeAgent. View the full image at FreeAgent … [Read more...]
Make sure you Christmas Party is tax deductible!
Is it too early to mention the "C" word? Hopefully it's not too early for us to share our advice on how to make sure that your Christmas Party is allowable for Tax. Follow these simple rules (applicable to Limited Companies only): The party or event needs to be open to all employees It is an annual occurrence but doesn't have to be at Christmas … [Read more...]
3 EASY and CHEAP ways to keep your accounts
Staying on top of your finances is super important when you’re self employed either as a sole trader or a director of your own limited company. You need to know if you’re making a profit, how much you need to put aside for tax and what’s left for you to take out of the business. The only way you can achieve this is by keeping your accounts up to date, also known as … [Read more...]