How are limited company dividends taxed?

tax on dividends

If you are a limited company shareholder, you may have to pay tax on any dividend income you receive. Here we explain how company dividends are taxed and how to calculate the amount of tax due on dividend income.

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Rewarding staff with bonus shares – tax implications

shares employee bonus

Bonus payments may have been a bit thin on the ground since the COVID-19 pandemic hit. 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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Guide to Value Added Tax (VAT) for small businesses

vat limited company sole trader

VAT is something that many new business owners overlook. Many assume that it doesn’t apply to them – surely it’s just for the bigger businesses out there? That may be true most of the time, but VAT could still apply to your business so it’s important to know about it.

If you’re either a sole trader, or limited company owner looking to get clued-in about all things VAT, keep reading. We’ll take you through whether you need to register, how to register and what you need to do next. (more…)

Small business taxation – what are the main taxes?

tax on businesses

Small businesses, and the individuals who run them, are subject to a wide array of taxes – from Corporation Tax to National Insurance.

Here is an overview of the main UK business taxes you will encounter as a business owner, together with links to our more in-depth guides.
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Thinking of going self-employed? Expert tax tips

Becoming self employed is a new and exciting chapter of life, but it does come with extra responsibilities. With so much to think about, we asked David Genders, author of The Daily Telegraph Tax Guide to explain the key financial and tax points you need to consider when going self-employed. (more…)

Your Making Tax Digital for VAT questions answered

Making Tax Digital (MTD) is arguably the biggest change to the UK’s tax system for a generation, so here’s a quick walkthrough of what MTD means for small businesses, together with five practical steps to help you tackle the changes. (more…)

What is Corporation Tax? Guide for small companies

If you set up a business via a limited company, your annual profits will be subject to Corporation Tax.

Dealing with your corporation tax issues is one of your accountant’s key tasks. However, it is ultimately the directors of a limited who are responsible for ensuring that a company’s tax affairs are in order. (more…)

10 common self-assessment tax return mistakes and how to avoid them

self assessment income tax return 2017/18

If you need to submit a Self-Assessment Tax Return (SATR) it’s imperative you get it in on time and free of any mistakes. There are penalties for not submitting your tax return on time and you may have to pay a fine if HMRC decide that you haven’t taken sufficient care in preparing it.

This article explains how to get started with your tax return, and how to avoid common mistakes that people make on their self assessment tax return. (more…)

Top 10 VAT Tips for small businesses

Here are some tips to help small businesses keep on top of their VAT responsibilities – from choosing the right VAT scheme in the first place, to avoiding getting on the wrong side of HMRC.
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The Flat Rate VAT scheme & the Limited Cost Trader test

VAT is one of the more complex accounting practices you’ll have to undertake as a business, which is why it can help to make it as simple as possible.

The Flat Rate VAT scheme does exactly this and, if you’re eligible, could save you the headache of unnecessary work. (more…)

Corporation Tax – how to reduce your bill

Running your own business sometimes seems to be a series of successes followed by setbacks.

You win a big client, then lose an existing client. You hire the perfect employee and their current employer offers them more money to stay. You make a nice profit, and the taxman comes along and takes almost 20 per cent of it! Talk about three steps forward, two steps back.
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Could you cut your tax bill by claiming some of these business expenses?

business expense claims

Many business owners don‘t realise that the expenses they can claim against income go beyond rent, rates, equipment, marketing, insurance and salaries. How about food, holidays and school fees?

To help find out if you could cut your tax bill, we asked a tax expert to explain more about some of the less well-known business expenses you can claim. (more…)

How to avoid Corporation Tax mistakes

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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A guide to Personal Liability Notices (PLNs) for company directors

Originally, PLNs were predominantly used by HMRC to tackle “phoenixism”, where the assets and the operations of an insolvent business that has run up significant tax debts are transferred to a new company operated by the same management team that has a history of non-payment of tax liabilities. However, HMRC’s use of PLNs is now increasing. (more…)

Salary Sacrifice Schemes – what are the new rules from April 2017?

new salary sacrifice rules 2017

Significant changes to UK salary sacrifice schemes have now been implemented. Affecting both employers and employees, these changes essentially remove the tax incentives of many of the benefits in kind (BiK) offered under salary sacrifice arrangements.

With, the new salary sacrifice rules reducing the tax benefits of salary sacrifice schemes, here’s what small businesses need to know about the changes and how they affect employers and employees. (more…)

21 costly VAT mistakes businesses make on their VAT Returns

VAT return

Is a Jaffa Cake a biscuit or a cake?

Now if you think this is some playground joke, think again. This is a real question that judges were asked to consider in a landmark VAT case.

The fact it took a court case to work out the answer to this question gives you an insight into just how complicated the UK’s VAT system has become. If HMRC, can’t answer such a simple question, what hope is there for busy small business owners?

With the complexity of the VAT laws it’s understandable that businesses make mistakes on their VAT returns. However, these mistakes can be very costly both in terms of paying the wrong amount of VAT and also triggering a VAT investigation.

To help you avoid making these expensive mistakes, we asked Jonathan Amponsah, founder of The Tax Guys, to reveal the 21 common mistakes small businesses make on VAT Returns. (more…)

10 essential tax tips for small business owners

Tax isn’t the most exciting part of running your own business, but it is an issue that you will have to tackle at some point.

To help you to quickly get to grips with the subject, here are some handy tax tips based on our findings of working with small businesses over the past 15 years, and from our own personal experiences of running our own business at ByteStart.
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