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...]
Quick Tax Tip – Avoid making an illegal dividend
When you make a dividend payment from your limited company you need to ensure that you’ve sufficient funds available to do so. Otherwise the dividend could be “illegal” which could cause a number of issues later down the track. How to work out your dividend To establish if you can pay a dividend and how much you can take there are some very simple rules to … [Read more...]
MBO Partners and Contracting Plus – all under one Umbrella
With the IR35 reforms coming to the private sector in April 2020, organisations who use flexible workers, known as Contractors, need to undertake reviews to ascertain if that worker falls within IR35 or not. What is IR35? Simply put IR35 legislation examines if a worker is engaged as an independent contractor, through their own business e.g. a limited company, or if … [Read more...]
What is IR35?
Travel and subsistence: how much can your limited company claim?
Whether you’re a freelancer, contractor or a small business owner, you may be called upon to work away from your normal base, occasionally or frequently. This will create travel costs for your business, while you’ll also need to feed yourself. But, what are the rules when it comes to claiming for such costs? What travel and subsistence costs are allowed? To be able … [Read more...]
Planning for a Mortgage when Self Employed
Securing a mortgage can be hard enough at the best of times. Couple that with being self employed and the whole process could turn into a bit of a nightmare unless you’re well prepared. We regularly help clients with providing an accountant’s reference which most lenders will require if you are self employed. This usually shows the last two or three years financial data, … [Read more...]
Five reasons you will need an accountant for your limited company
I have been in the accountancy profession long enough to know that not everyone is a fan of spending their hard earned cash on using us to deal with their accounting needs. However there are a few reasons why I think it is essential to use an accountant to take care of the accounting and tax leaving you to concentrate on running your business …… Can you keep … [Read more...]
What is a Year End?
Your accounting date is also known as the accounting reference or year end date. It is the date up to which your accounts are prepared and is generally the end of a calendar month although it can be any date. For example 31st December or 31st March. Depending on your business type the year end can be set by you or it could have been already set up as part of the … [Read more...]
What are Accounts?
There are many definitions but simply put your Accounts are the documents showing exactly how your business is performing in financial terms. Every business, whether a sole trader or a limited company, must keep accounts and accounting records (the data that makes up the accounts). Why do you need Accounts? It’s essential to keep your accounts up to date not least so you … [Read more...]
Five Common but INCORRECT myths about accounts and tax
1. I’m only earning a small amount from my business so I don’t need to tell the tax man Subject to the considerations of the Trading Allowance, all business income regardless of how small must be declared in your accounts and on a tax return even if you end up making a loss (income – costs = profit) and / or there is no tax to pay. 2. I’ve spent all the money I’ve … [Read more...]
Simple guide to closing a company
Many people set up a limited company with very high hopes of business success. Unfortunately such success is not guaranteed and can elude some, resulting in the need to close the company. If your company is no longer needed, has no debts and has stopped trading then closing the business should be easy and straight forward. In these circumstances the closure of … [Read more...]
5 Rules for Allowable Business Costs
Claiming all your business costs against your profit is essential for ensuring that you pay the right amount of tax. But just what is an allowable business cost? Here are five Golden Rules to follow ensuring that you claim the right costs.... Was the cost incurred wholly and exclusively for the business? If you didn’t have the business would you still have … [Read more...]