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[7 Apr 2015 | Comments Off on Director shareholder payments 2015/16 | ]
Director shareholder payments 2015/16

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 …

annual »

[24 Feb 2015 | Comments Off on The New Marriage Allowance | ]
The New Marriage Allowance

The new Marriage Allowance is set to come into force on 6 Apr 2015 when the new tax year starts. It was announced in last year’s Budget when David Cameron and George Osborne made a big deal about it . . .

Prime Minister David Cameron: “I made a clear commitment to the British people that I would recognise marriage in the tax system.”
Chancellor of the Exchequer George Osborne: “Our new Marriage Allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.”

However, it is not as simple …

getting things done, one offs »

[12 Dec 2014 | No Comment | ]
#VATMOSS #VATMESS

VAT MOSS applies to all businesses whether or not they are currently VAT registered! Do you sell (or are you planning to sell) digital products (eServices) over the web?
From 1 Jan 2015 the rules change and as a result, some non-VAT registered business will need to review their business methods and may be forced to register for VAT. Businesses which are already VAT registered may need to collect more data from their customers and charge a different VAT rate depending on where their customer lives.

The rules were developed to make …

one offs »

[30 Jul 2014 | No Comment | ]
HMRC on strike

Is it worth phoning HMRC? Do the staff in the call centres actually have any expertise? If you’re promised a return call, do they actually call you back? In our experience the answer to all these questions is an emphatic “no”!
Today, staff at HMRC are going on strike (for three days) to protest about staffing levels. We have long known that things are not getting done. We gave up phoning HMRC in 2006 and started a process of sending them everything in writing. That way, if there is ever any …

routine »

[8 Feb 2012 | No Comment | ]
What is a business expense?

In order to establish what is a business expense, first we need to know “what is a business”?

A business is “an activity which is earnestly pursued with the objective of making a profit” as set out in the case of Customs and Excise Commissioners v Lord Fisher 1981.
And so it follows that a business expense is a cost which is incurred in order to increase the chances of that activity making that desired profit. If the primary purpose of incurring an expense is not to help the business to make …

one offs »

[31 Mar 2011 | No Comment | ]

The 2012 version is here http://www.proactive.uk.net/?p=1436
This is version 11.0.3
Our service to you
We will prepare the income and expenditure accounts of the partnership, the partnership tax computations based thereon and the partnership tax return, from your accounting records and other information and explanations provided by you. We will advise you as to the adequacy of your records for this purpose, but we will not carry out an audit.
We will forward to you, your partnership tax return form and partnership accounts, and any supporting schedules for your approval and signature. Once …

one offs »

[24 Mar 2011 | No Comment | ]
What the Budget means for your company

Is your limited company (in the UK) making profits of 1.5 million or more? Whoopee! Go and buy yourself a drink, because your corporation tax will drop from 28% to 26% next year.

However, if you have a “small” limited company, like me, and like 95% of the companies in the UK then you may rightly feel that you have been deceived by the headlines in today’s media and press (today being 24 March 2011). If your company makes profits of less than £350,000 per year then your corporation tax bill …

routine »

[1 Jan 2011 | No Comment | ]

Business is business, and your clients know (just the same as you do) that if payments are not made properly, then the business relationship they have with you will ultimately die. Here are 5 key steps to help you ensure that things are kept under control.
1. Terms and Conditions. You need to manage expectations, and a properly drafted set of terms and conditions (T&C) sets the scene immediately. Don’t start work without one. It allows both you and your client to understand the roles and requirements of each party. It …

getting things done »

[2 Dec 2010 | No Comment | ]
Salary or Dividend?

The question has been around for over 20 years

The established way for a small limited company to reward its director/shareholder is to take a small salary at the tax and NI threshold and to top that up with dividends. Of course that assumes the company has enough profit and can pay dividends. Dividends are paid out of the post-tax profit and all things being equal, a basic rate taxpayer will have no additional personal tax to pay.
It has long been argued (for more than 20 years now) that the Revenue …

annual »

[2 Sep 2009 | No Comment | ]

It’s normal for some people to make tax payments on account every 6 months

If you’re self employed, or have lots of income from rent, dividends or investments, you may have become used to the pattern of making tax payments every 6 months.
However, the way the rules are structured, it normally comes as a bit of a surprise the first time you encounter the the “payments on account” regime. PoA for short. If most of your tax is paid under PAYE you won’t need to worry about this. The rule is …