In light of the launch of the Certificates of Tax Position tool, there has never been a more important time for entrepreneurs to be aware of the risk on any undeclared offshore income or gains.
We asked Mark Wilson, a Partner at Richard Nelson LLP and specialist in resolving tax investigations, to explain what entreprenurs need to know about Certificates of Tax Position, and the steps to take. (more…)
Savvy entrepreneurs seem to make more money, yet find legal ways to optimise their taxes. So what do they know, and do differently to cut their tax bills?
We asked Jonathan Amponsah CTA FCCA, of The Tax Guys, to explain how some entrepreneurs manage to keep more of their hard-earned cash. (more…)
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 deem you have not taken enough care in completing 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…)
It’s Christmas! Well, nearly – and that means festive gifts and the goodwill. If you’re smart, your generosity can be tax deductible, so we asked Jonathan Amponsah of The Tax Guys to explain how you can claim some Christmas tax reliefs, and reduce your tax bill whilst still keeping the taxman happy. (more…)
The area of tax for small businesses is not straightforward, in fact it can be a real minefield for the unwary. However, if you take a little time, and work with your accountant, it’s usually possible to find ways to save some tax.
To help you think about ways you and your business could pay less tax, we’ve asked Simon Cox of Forbes Watson Accountants to share 10 of the best ways small business owners can look to pay less tax. (more…)
In this guide, we look at the taxes you will encounter if you start your own business as a sole trader, and other things you should bear in mind before taking the plunge and becoming self employed. (more…)
Increasing cash flow and being tax-efficient are usually near the top of every small business owner’s agenda. One way to achieve both these aims is to take advantage of the various tax incentives available to businesses.
However, small businesses often miss out on these tax breaks because they either don’t know what they’re entitled to, or can’t find the time to make a claim. So to help you save time and money, here are five tax incentives and tax relief opportunities small businesses can take advantage of; (more…)
Once upon a time, not too long ago (up until 6 April 2011 to be exact), employers could force workers to retire at 65. However, since the abolition of the Default Retirement Age, you can continue to work well after 65 if you choose to.
Many business owners enjoy working, and do continue working after retirement age, but what if you do not want to work after the age of 65? (more…)
In recent years there has been a large increase in the number of individuals working for themselves in a trade, profession or vocation.
Becoming self employed is a new and exciting chapter of life, but it is crucial to get all the basics right to ensure that your new business is as successful as possible. 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…)
National Insurance is a deduction from earnings, set up originally to fund various State benefits such as the NHS, the State pension and other welfare-related schemes.
In reality, it is just another tax. In fact, as standard income tax rates have remained constant for many years, NI rates have soared.
In this guide we look at how National Insurance works, and what your National Insurance Contributions (NICs) will be as a small business owner. (more…)
Whether you’re a sole trader, a partnership or a limited company, you may be paying more tax than you need to, and you won’t be alone.
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’ve asked Jonathan Amponsah of the The Tax Guys to explain more about some of the less well known business expenses you can claim. (more…)
To clarify the various tax rates, thresholds and allowances that self employed workers, business owners and company directors need to be aware of for tax calculations, here is ByteStart’s summary of the main tax rates, tax bands, and tax allowances for the tax year from 6 April 2016 to 5 April 2017.
These are the rates and thresholds that you will need to use for completing self assessment tax returns for 2016/17.
The deadline for filing a paper tax return for the 2016/17 tax year is 30 October 2017. If you are completing your self assessment online, you have until 31 January to submit your return.
Cash flow is arguably one of the most important parts of managing your small business. So any tax incentives, or potential tax relief opportunities which are available should always be grabbed with both hands.
But then, you often hear stories about how great these incentives and reliefs are, only to find that there are lots of conditions and qualifying factors, which mean you can’t actually benefit from them.
Thankfully, Research and Development tax relief isn’t like that. As long as you are genuinely investing in R&D projects, there’s a great opportunity to cut your corporation tax bill, or even get tax credits from HMRC in the form of an actual cheque!
So, what do you need to know about Research & Development Tax Relief Incentives? (more…)
Personal Liability Notices or PLNs first came into effect in April 2009.
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…)
Government measures announced last year by the Chancellor to tackle tax avoidance schemes appear to be paying off.
A recent illustration of this is HMRC’s high profile win in the Supreme Court against Rangers FC and its use of Employee Benefit Trusts (EBTs) to pay staff.
More than £47m was paid to dozens of staff members and players in tax-free loans, however HMRC successfully argued that these weren’t loans, but taxable income.
If you, or your business, have used tax avoidance schemes in the past, you could soon be receiving an Accelerated Payment Notice (APN) from HMRC. So what should you do if you receive an APN? (more…)
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…)
When you set up 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…)
Just a week after the 2017 Spring Budget when Chancellor, Philip Hammond announced an increase in Class 4 National Insurance Contributions for the UK’s self employed workers, he has decided that the proposed tax increase isn’t a good idea after all!
Responding to wide criticism from Tory MPs and the perceived attack on millions of self employed workers, including the ‘white van man’, Hammond has written to MPs informing them of his decision to reverse the proposed NI hike.
His letter reads; (more…)
Millions of small business owners will see the amount of tax they pay go up following the Spring 2017 Budget.
Chancellor Philip Hammond announced in his Budget speech, plans to increase the taxes paid by the self-employed and limited company directors.
For millions of UK small businesses, ‘tax season’ represents a costly, time-consuming inconvenience. But Britain’s tax landscape is transforming: in March 2015, HMRC announced its plan to update the self assessment tax payment process – moving away from annual paper returns, and towards a digitized, online system.
The government’s new digital tax accounts system introduces a fundamental shift in the way small business owners – both those working as self employed and those operating as limited companies – report and pay their tax liabilities.
The introduction of digital tax accounts will, within a few years, make the annual self assessment tax return obsolete – so how exactly will the changes affect Britain’s small businesses? (more…)
If you are having problems paying HMRC your business taxes, you may be able to agree a Time to Pay arrangement so you can pay the tax over a longer period of time.
In this concise guide, we walk you through HMRC’s Time to Pay Arrangements, explain what you should understand before contacting HMRC, and share some practical tips on how to make the most of Time to Pay;
To help small business owners and company directors stay up to date with all the various tax rates, thresholds and allowances that might be needed for tax calculations, here is ByteStart’s summary of the main tax rates, tax bands, and tax allowances for the tax year from 6 April 2015 to 5 April 2016.
At 1.30pm on Wednesday 16 March, 2016, George Osborne delivered his eighth Budget as Chancellor of the Exchequer.
The overall headlines include the introduction of a sugar tax on soft drinks from 2017, extra funding for schools to have longer days and a downward revision of growth forecasts for the UK, but what did Budget 2016 bring for small businesses?
Here are the main points that affect business owners, both self-employed and limited company directors; (more…)
From 6 April 2016, the way dividend income is taxed will change significantly. The changes will affect hundreds of thousands of small business owners, many of whom will see a big jump in the amount of tax they will have to pay.
At present, company dividends are treated as ‘tax paid’ in the hands of shareholders. However, from April 2016 the tax treatment of dividends will be altered dramatically, and as you can imagine, this isn’t going to result in limited company directors paying less tax! (more…)
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.
With the plethora of tax rates, thresholds and allowances changing every year, here is ByteStart’s summary of the main tax rates, tax bands, and allowances for the 2014/2015 tax year. We focus on the figures that are of relevance to business owners.
When you buy certain new equipment, invest in buildings or research and development, you can deduct a proportion of the cost from your taxable profits and reduce your business tax bill, through Capital Allowances.
Capital Allowances take the place of commercial depreciation, which is not allowed for tax. Using them effectively can be a huge boost to your business, especially if you need to invest to fund growth.
Here’s a look at the main elements of the various capital allowances schemes and how your business can qualify to take advantage of them. (more…)
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 fat profit, and the taxman comes along and takes 20 per cent of it! Talk about three steps forward, two steps back.
If you are a limited company shareholder, you may have to pay personal tax on any dividend income you receive. This article outlines how company dividends are taxed.
Following George Osborne’s delivery of the 2014 Budget, here is a summary of the main tax changes and announcements that will be of interest to those that own and run small businesses: (more…)
As more and more people choose to work from home, the question of how you can reclaim any home office expenses is frequently asked.
The general HMRC rule for claiming tax relief on business expenses is that you can only reclaim costs that have been ‘wholly and exclusively’ incurred in connection with your trade.
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 decade, and from our own personal experience at the ByteStart team.
Large firms are set to enjoy another Corporation Tax cut following Budget 2013, but while the headline rate has been reduced significantly under the current Government, small companies will not benefit.
The most talked-about small business announcement from Budget 2013 is the implementation of a new ‘Employment Allowance’, which will reduce firms’ Employers’ NI bills by up to £2,000 from April 2014.
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.
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.