Insights

HMRC issues “Factsheet for contractors”

With the 6 April deadline for the new off-payroll rules (IR35) fast approaching, HMRC has produced a factsheet for those working through intermediaries. Are you affected by the new rules? If you provide your services to a client through an intermediary (e.g. your own...

Do you know how profitable your business is?

This may seem an odd question, but many SME business owners are so busy they often don’t know. Far too many rely on being close to the business, their intuition, gut-feel etc. Ask yourself: Do you have up to date and accurate accounting and management information? Do...

Two tax-free mobiles – HMRC amends guidance

HMRC has recently confirmed that it’s possible for an employee or a director of a company to be provided with two tax-free mobile phones, where one of them is for business use with any private use of this phone being insignificant. But if two mobile phones are given...

New minimum wage rates for 2020/21

A 6.2% increase The government has announced a 6.2% increase in the national living (NLW) and national minimum wage (NMW) rates to take effect on 1 April 2020. Make sure that your payroll manager or outsourced payroll provider takes account of the increases by...

Record keeping and tax – an overview

Keeping good records is important for many reasons. It will enable you to know your tax liabilities as soon as possible and to submit timely and accurate tax returns. You’ll also be able to respond quickly and confidently to any HMRC enquiry. And you’ll avoid the...

Watch out for tax scams this time of year

The number and type of scams involving bogus HMRC communications always increases this time of year, as the self-assessment payment deadline approaches. Statistics show that in 2018/19 HMRC received approximately 900,000 reports about possible scams related to...

Sole trader taxation 2019/20 – at a glance

HMRC’s tax rules can be a minefield for sole traders. Don’t forget, if you’re running a sole trade business, you are the business – you’ve not set up a company through which to trade. This means that you are personally liable for any taxes due. It’s...

Paying dividends – how and when

Dividends can sometimes be difficult to understand. Many SME business owners worry about whether they can pay themselves a dividend, how to go about it and when will the dividend be taxed. It’s certainly possible to get things wrong and then find that a...

Is it time to move on from Excel spreadsheets?

I’m a Chartered Accountant and I love Excel. There, I’ve said it! What can I say, Excel is s fantastic tool. It’s served me well over my 25 year plus career, both in practice and industry. Whether it’s been forecasts to support a business plan, financial...

Not all accountant are the same. Not all accountants are Chartered Accountants.

I’m frequently surprised by how many people are unaware that the term ‘Accountant’ isn’t legally protected – anybody can call themselves an accountant without any training or experience. Buy some book-keeping and tax software, get a website and start to market...

Avoid these mistakes and save tax

For many SME businesses, tax can be such a headache that their business suffers. Here are some of the common mistakes you should avoid. 1. Not hiring a qualified chartered accountant This is a costly mistake for any business owner. There isn’t a more effective...

Salary or dividends 2019/20? What is the most tax-efficient method of extracting profit from my company?

If you operate your business through a limited company, you should be aware of the optimum salary/dividend mix to extract money from your company in the most tax-efficient way. This usually involves paying yourself a minimal salary and then dividends on top of...

Preparing a business plan to raise business finance?

Are you planning to access new funding for your business? Do you need to prepare a Business Plan to support your funding proposal? Here are some of the key things which you should consider including. Executive summary Always include an Executive Summary at the...

Do you or your partner receive child benefit? Does one of you earn over £50,000? Beware the high income tax child benefit charge

The high income child benefit charge is an income tax charge designed to recover child benefits payments if the recipient or their partner has net income over £50,000 in a tax year. Introduced several years ago, the charge continues to catch out taxpayers. Child...

Fancy an early finish?

Well it’s mid-July 2019 already. How many of you have completed your 2018/19 self-assessment tax return? Yes, we know it’s a chore and the filing deadline is 31 January 2020, but what’s stopping you getting it done now? Do you run your own business? How...

Are you taking advantage of all available tax reliefs?

In isolation, an individual tax relief might not seem much, but when you take advantage of the full range of available reliefs by planning your affairs correctly they can add up to a significant amount. Take the Marriage Allowance as a small example. Introduced...

SME Tax News, March 2019

Pre 5 April 2019 – common tax planning issues The 5 April tax year-end is fast approaching, but you still have time to save tax. It’s also time to think about planning better for the next tax year. Some of the most common areas to think about are set out below....

Sole trader or limited company – key issues

This guide provides an overview of the key issues when considering whether to run a UK trading business as an unincorporated sole trade (or if more than one person is involved, as a conventional partnership) and through a limited liability company. The first point to...

Which trading structure is suitable for me?

When you start a business, you must decide which trading structure (also known as a “vehicle”) is appropriate for you. Indeed, business owners should review the structure of their business at key points in its lifecycle. A structure which was right for a...

Workplace pension minimum contribution increases

If you have a workplace pension, then you may receive communication from your pension provider informing you of the upcoming changes to minimum contribution rates, effective from April 2019. Currently (2018/19), the total minimum contributions are 5%, with the...

How to sell a business

It doesn’t matter whether you are selling a small business or a large complex group, all business disposals benefit from a well planned and executed process. Indeed, a well-managed process can have a significant impact on the price achieved by vendors. Most disposals...

“I do my own tax, but …. “

I hear this comment more frequently this time of year, as the self-assessment tax return deadline fast approaches (31 January). It’s a comment which usually ends with “but it’s always a bit of a nightmare” or “but I hate it!”. It is often accompanied by a...

2017/18 Self Asssessment Tax Return Checklist

Client Self Assessment Checklist Tax Year 2017/18 (Year Ended 5 April 2018) We recommend that you complete your self-assessment tax return as soon as possible after the end of the tax year (5 April), so you can plan for any tax bill. The final deadline for submission...

Salary or Dividends 2018/19? What is the most tax-efficient method of extracting profit from my company?

If you operate your business through a limited company, you should be aware of the optimum salary/dividend mix to extract money from your company in the most tax-efficient way. This usually involves paying yourself a minimal salary and then dividends on top of this...

Business start-up tips

Starting a new business is exciting, but often feels overwhelming. You’ve got an idea, you’ve thought about it long and hard and you’re ready to go for it. We’ve spoken to many people who have started their own business. Indeed, we’ve been through the same process...

Budget 2018 highlights for SMEs and indviduals

In his Budget speech in October, the Chancellor argued the UK has turned a corner and that ‘austerity is coming to an end’. He made it clear that the Budget put the Government on a path to a full spending review next year. The Chancellor acknowledged the Brexit...