A Community Interest Company (CIC) is an enterprise set up to make a profit for the benefit of the community. CICs first appeared in 2005 and were designed to address the lack of non-charitable businesses or community-based companies.
While council tax is charged on residential properties, the vast majority of non-residential properties have a non-domestic equivalent levied on them.
The UK tax authorities introduced new regulations on 30th June 2016 which introduced a new piece of paperwork for all businesses registered at Companies House to file. The new annual confirmation statement has replaced the annual return (Companies House form AR01) but does all the same things – just in a simpler way.
Whether you have recently set up a limited company or you have been managing your finances independently until now, hiring an accountant may be the best thing you do during the early days of running your business.
When running a company, you may be most concerned with turning a profit or developing your capital, depending on the nature of your business and your priorities. Naturally, there will be taxes to pay and these will be based on both the income and capital elements of your business. How much tax you will pay will be calculated on your income less any day-to-day running costs, and on your capital less any capital expenditure.
When you set up your own limited company, one of the most important things to consider if you also have employees is to set up your company’s payroll.
You may have considered purchasing a car via your own limited company. However, before you go ahead, you should consider the tax implications of using a company car for your own personal use, compared to the option of simply claiming back mileage costs of using your own car whilst on business.
Every year in the UK, all registered companies must prepare annual accounts and file them with Companies House and HMRC. Businesses must accurately report on their financial activity during the tax year just gone.
Originally, the National Insurance scheme was set up to pay for the then newly established NHS and other state benefits after the second world war as part of the establishment of the welfare state. Workers would pay a percentage of their income so that people who could not work due to age, infirmity or ill health could still have money to live on.
Traditional employees have income tax deducted before they get paid by their employer. The Self Assessment system is in place to collect income tax from individuals who have earnings which can’t be taxed in this way – such as the self-employed and company directors.