There is an established working practice whereby directors of small limited companies (typically “one man” limited companies) reward themselves with a combination of small salary and big dividend. The point of doing this is to stay within the law, and to hand over the smallest possible sum of money to HM Revenue & Customs. In order to benefit from this working practice you must follow the system precisely. Failure to do so may lead to the imposition of a deduction of PAYE from your income and possibly a charge to …

When you get a VAT letter like this one . . .

. . . please let us have a copy. We will log it as the 500870 Notice of VAT Deregistration in our system. Thanks.

There have been a few discussions recently in the press, about this sector or that sector aiming for greater transparency. We were introduced to the idea of transparency, properly, during a visit to Oxford University in 2009. Until then, we only had a fledgling idea on an in-house project which we were calling “openness”.

The transparency report on the Proactive web site http://www.proactive.uk.net

Although businesses are generally slow to take up this new concept (and to date the initiative has been discussed mainly amongst central and local government) we are aiming to …

In the early days of a business, it may be advisable to pay yourself a small salary, even if your company cannot really justify the cost. The reason is tax relief. And, as tax reliefs are linked to tax years and as tax years end every 5 April, once the tax year has gone the opportunity to get the tax relief is lost.
It works like this . . .

Paying a salary from a company is an allowable expense. All things being equal, your company will get 20% tax relief on …

This is version 12.0.4
Introduction
The objectives of the corporate accounts and  tax services are to keep you informed about the performance of your business, and to keep you “on side” with the government. And, because the government lays down strict deadlines and processes for the submission of accounts and corporation tax returns, we have also adopted deadlines and processes to helps us do your accounts and tax returns in a timely way. In order to focus on doing this well, Proactive uses a popular and secure file storage system called DropBox. …