Tax / Accounting
How limited companies are taxed – including how to deal with Corporation Tax, VAT, Class 1 National Insurance, CGT, PAYE (Income Tax) and how to run your payroll.
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How are limited company dividends taxed?
Limited companies may decide to distribute their retained profits to shareholders. It is a popular method of drawing down funds by directors. Here, we look at how dividends are taxed, and how to ensure that you declare dividends correctly.
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Can I use my personal bank account for business?
Whether or not you need a separate business bank account depends entirely on whether you are going into business as a sole trader, or setting up a limited company.
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What is Inheritance Tax, and how is it applied?
As the well-known saying puts it, the only two certainties in life are death and taxes, which is definitely where inheritance tax (IHT) comes in. But what exactly is IHT, and is there anything you can do to mitigate the effects of this on an estate?
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Details you must include on limited company invoices
Sending out invoices for the goods or services you provide is a key task for limited company owners. If your invoices lack certain details, this could cause a delay in receiving payment, possibly resulting in cash-flow problems.
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How to survive an HMRC tax investigation
There are few things business owners dread more than being on the receiving end of an HMRC tax investigation. But the situation may not be quite as stressful as you might think.
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What is the Bribery Act, and how are small businesses affected?
Businesses of all shapes and sizes in the UK are affected by the Bribery Act and company directors need to be aware of what they should do to ensure their full compliance with the rules.
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How Capital Gains Tax works
Capital Gains Tax (CGT) is pretty easy to understand: it’s the tax you have to pay when you sell an asset that has grown in value. You will only pay CGT on any profit you made from the sale and not on the overall sum you received.
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Balance sheet, profit and loss account – what do they mean?
If you’re running a limited company, your company accounts will contain a balance sheet and profit and loss statement. They form part of your statutory annual accounts. But what exactly do these terms mean, and when are you likely to need to use these documents? What is a profit and loss statement? Your profit and […]
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Entrepreneurs’ Relief (now BADR) – 10% tax on eligible business disposals
To encourage entrepreneurship in the UK, eligible individuals pay a lower 10% rate of Capital Gains Tax on the disposal of business assets, subject to a lifetime limit.
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What is the Child Benefit High Income Charge?
Since January 2013, if you (or your partner) earns £50,000 or more, your family is not eligible to receive the full state Child Benefit entitlement. Here we look at how this charge works, and why it creates a controversial anomaly in the tax system.
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What should company owners know about bookkeeping?
If you are a new business owner, bookkeeping in some form is going to be essential to organising your finances, allowing you to keep up-to-date records of both your income and your outgoings. In this article, we look at everything to do with bookkeeping: from the basics to the regular bookkeeping tasks which you are […]
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What is VAT, and do I need to register my company?
Almost every consumer in Britain pays it, and it’s a staple talking point during the Chancellor’s annual budget. But what exactly is VAT and do you need to register your limited company for it?