If you are thinking of starting or improving an existing business or create an idea in a business plan and test the tax impact, we can help you. The more we know about your ideas and activities, the better we can support your business and give you the right advice.
If you can’t find your answers here please contact us.
If you want to start working as self-employed, you must register with HM Revenue & Customs, but first make sure you have a National Insurance Number. After the registration, you will receive your Unique Taxpayer Reference (UTR) and HMRC will set up the right tax and National Insurance contributions records. You should keep your UTR safe because you will need it when completing your Self-assessment tax return.
If you are doing business in the UK but your turnover is below the threshold for registration, you may register for VAT voluntarily. Remember to regularly check if your turnover has exceeded the threshold and you need to register.
You may find it beneficial to be able to charge VAT on your sales and claim back VAT on your purchases in various ways. By way of example, if there is a zero VAT rate for the items you sell but you buy standard-rated items, HMRC will give you a VAT refund. Note that if you voluntarily register for VAT, you have the same rights but also responsibilities as in the case of compulsory registration.
The flat rate VAT scheme is aimed at simplifying VAT for smaller businesses with an anticipated turnover of up to £150,000 (gross) per annum. You pay VAT to HMRC as a flat rate percentage on your gross sales. The flat rate percentages vary depending on business activity. Under the flat rate scheme you cannot reclaim VAT on your purchases and expenses, but you can on larger capital purchases of equipment over £2,000. Once you enter the flat rate scheme you are free to leave at any time, but then cannot re-enter the scheme for 12 months.
If you need to close your business you should plan it carefully. First of all, it is important that you inform HMRC of your intent. Only then will you be able to settle matters related to tax and National Insurance. In some circumstances it is possible to extend the deadlines for payments or even to claim back some tax or National Insurance.
If you have decided to close your limited company, the company reserves will indicate the closure process where its liquidation or strike off.
We can help you in calculating the company reserves and any outstanding liabilities or refund to meet the legal requirements and get any relief available to you contact us so we can help you take the right action at the right time.
Definitely. The company can make payments into pension plans which are a tax-deductible expense for the company.
Yes, you can, but you should look at it as a short-term measure. It’s best to speak us prior to moving funds to ensure you are aware of all the implications.
The first thing you need to know is dividends are paid to shareholders from the company’s retained profit after tax, so you need to make sure the payment reflects the number and class of shares held.
An annual return is a document that is filed once a year at Companies House. It provides non-financial information about the company and ensures the public record is kept up to date. Companies House require a fee of £13 to file this document electronically and £45 to file a paper version (2013-2014). We charge a little admin fee should you require assistance for filling.
Yes. Most companies Memorandums and Articles allow a wide range of business activities. You can run more than one activity through a company. As long as it is legal! We can help you understand your companies Memorandums and Articles and adopt new ones where required to suit your business needs.
Be aware of this! Depending upon the nature of your business, it may affect you and potentially undermine the benefits of trading through a limited company. IR35 is HMRC tax legislation that was introduced to identify contractors who are receiving the tax benefits of working through a Limited company when they are really a disguised employee of the clients