Tax Guides

With the tax year end on the horizon once again, and significant changes to tax rates taking effect from April 2013, we examine how individuals can make the most of the currently available tax reliefs.
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Controversial changes to the Child Benefit regime went live on 7th January 2013. The benefit is no longer universal, and will be reduced when one parent earns over £50,000 per year, and scrapped entirely when earnings reach £60,000.
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From 7th January 2013, Child Benefit (CB) will be means tested for the first time. HMRC are sending out letters to taxpayers over the coming weeks. So, how will you be affected?
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As the tax year draws to an end, self employed people and limited company owners should consider their tax saving strategies, to ensure that they do not have to pay the highest rate of tax on their hard-earned income.
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Just as you have to pay council tax on your home, so your business must cough up business rates for its premises. They can be a pain and an easily overlooked cost when you are starting your business. In some circumstances, you may even have to pay business rates if you run a business from home.

This guide will help you understand what business rates you might have to pay, how to challenge the rates set, and even if you can claim any relief.
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The end of the 2011-12 tax year is fast approaching – 5 April 2012. In this article, we look at some of the issues that you may like to consider while there is still time to act.
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HMRC has announced that it is to an impose a Capital Gains Tax ceiling on the amount of capital that can be distributed to shareholders when a limited company is wound up, before income tax is applied.
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If you are organising a well-deserved works party this Christmas HFM Accountants have summarised the current tax reliefs available: (more…)

When you run a small business, either as a sole trader, partnership or limited company, there will always be a number of HMRC forms you will need to be aware of. Although your accountant will typically take care of many of your form-filling duties, we have summarised what the most common forms are used for in this article.
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A new, tough, HMRC penalty regime came into play from 1st April 2009. Individuals and business owners can now face penalties of up to 100% for deliberately underpaying tax.

The new HMRC penalty system has been drawn up to encourage people to take more care when submitting tax returns and other documents, as well as to deter deliberate under-assessment of tax liabilities.
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Bonus payments may have been a bit thin on the ground this year. Hard pressed businesses, struggling to meet existing commitments, may balk at the prospect of parting with cash. However, the benefits of having a loyal and satisfied staff may prompt them to consider alternatives to the cash bonus.
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Entrepreneur’s Relief can help business owners to cut the amount of Capital Gains Tax they need to pay when selling their business.

It was announced in the 2016 Budget that Entrepreneur’s Relief  would be extended to external investors in ‘unlisted trading companies’ from April 2016.

Here’s a guide for business owners explaining what Entrepreneur’s Relief is, how you qualify for the relief and what you need to do to claim it. (more…)

Businesses can currently write off 100% of the cost of acquiring qualifying assets against their taxable profits, up to an annual limit of £100,000. Assets that can be written off in this way include commercial vehicles, plant, computers and other equipment – cars do not qualify.

George Osborne’s Emergency Budget of 22nd June 2010 gave notice that the Annual Investment Allowance (AIA) annual limit is to be significantly reduced from £100,000 to £25,000 from April 2012.
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In this article, we look at what the PAYE scheme is, and how it applies to the self employed, including limited company directors.
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Whether you’re filing your self assessment return online, or if you’re sticking with the paper return, you can save yourself a lot of hassle by getting prepared in advance.If you follow these tips, you’ll save yourself countless trips to your filing cabinet, and hopefully save a great deal of time.
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Entrepreneurs’ Relief is a Capital Gains Tax concession on qualifying business disposals, providing a 10% CGT rate on business sales.
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When you start up as a sole trader, or partnership, you will be liable for a series of business-related taxes, as well as the ones you will have been used to as a normal employee.
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In the old days, one of the perks of running your own business was the ability to run a decent car by getting your company to lease it, and take it as a company car.

That perk doesn’t really exist any more. Over a number of years the tax rules have changed, to the extent that many accountants now say it is more tax efficient for many business owners to run their own private car and claim mileage expenses.
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In a way, HMRC expects very little of limited companies regarding Corporation Tax. All it asks is that as a director of the company, you comply with all tax laws, fill out your company tax return correctly, file it on time and pay up on time.

Sounds simple. But of course there are lots of different laws and conditions to comply with, and plenty of mistakes to be made.
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For small business people, the separation between “allowable” and “non-allowable” expenses is complex. This guide aims to provide an overview of business expenses, with links to further resources which provide more in-depth information.
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The post-tax profits of a limited company can be distributed to its shareholders in the form of dividends.

This short article explains how dividends are administered, and how dividends are taxed.
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If you run a limited company, you can distribute any profits you make via dividends to your shareholders. But how do you keep a record of dividend distributions?
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We are often asked to clarify the amount of tax payable by shareholders when dividends are paid, particularly, by private limited companies.
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A new guide has been produced explaining which tax records small businesses (including the self employed and limited companies) should keep, and for how long.
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Most normal ’employees’ have tax deducted at source via the PAYE system and are unlikely to have to fill in a tax return unless they receive other income.

When you start a business, you will join the ranks of those that fall under the self assessment tax regime.
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Enterprise Management Incentive (EMI) schemes may be an attractive way to remunerate and incentivise key staff – especially when the economic downturn may restrict other options.
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