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Should I incorporate my business?

2020-05-15T19:37:27+01:00December 27th, 2019|Categories: Blog, Business, Limited Company, Self Employment|Tags: , , |

As things currently stand, the expected cut in the main rate of corporation tax to 17% from April 2020 is unlikely to happen, but current corporation tax rates remain pretty favourable. There are also other areas where company formation may help save tax. The costs and regulations involved with running a company are usually greater than trading as a sole trader or in partnership, and should not be overlooked. In addition, incorporation generally means an increase in administration, which some businesses may find burdensome. The starting point for dealing with companies and company directors is to remember that a limited company [...]

Should I register for VAT?

2019-12-18T23:21:11+00:00December 21st, 2019|Categories: Blog, Business, VAT|Tags: , , , |

In broad terms, and subject to certain exceptions, a business will be required to register to charge and pay VAT once annual sales reach a pre-set annual threshold, which is currently £85,000. This threshold is determined by total sales and is not the same as total profits (which is generally sales minus expenses). However, a business can register for VAT even if its turnover (total sales) is below the threshold and it may actually save tax by doing so, particularly if its main clients or customers are organisations that can reclaim VAT themselves. Example Bill is a non-VAT registered [...]

Tax-free Christmas parties

2019-12-18T23:18:20+00:00December 19th, 2019|Categories: Blog, Business|Tags: , , |

Whilst the tax legislation does not include a specific allowance for an employer providing a Christmas party for employees, HMRC do allow limited tax relief against the cost of holding a social function for employees, providing certain conditions are met. Broadly, a social event - which of course, includes the annual Christmas party - will qualify as a tax-free benefit if the following conditions are satisfied: - The total cost must not exceed £150 per head, per year; - The event must be primarily for entertaining staff; and - The event must be open to employees generally, or to those at [...]

Losses in the first years of trade

2019-11-01T21:10:34+00:00November 6th, 2019|Categories: Business|Tags: , , |

If a new business makes losses in its first few years of trading, there may be scope to carry back those losses and set them off against other income received in the years prior to commencement of the trade. This is commonly referred to as 'early trade losses relief' and it applies to losses sustained in the tax year in which a trade is first carried on, or in any of the next three years. The provisions may be particularly useful to new businesses as they may be used to generate a cash boost in the form of a [...]

What is an EORI number and who needs one?

2019-10-28T22:58:37+00:00October 29th, 2019|Categories: Blog, Business|Tags: , , |

An economic operator registration and identification (EORI) number will be needed for UK businesses to be able to continue to trade with the EU after the UK leaves the EU. If there is a no-deal Brexit In the event that the UK leaves the EU without a deal, an EORI number that starts with GB will be needed to move goods in and out of the UK. An EORI number is not needed if goods are only moved between Northern Ireland and Ireland. However, one is required for imports and exports that move directly between Ireland and Great Britain [...]