How the tax system works for companies.
If two or more companies are controlled by the same person or by 'connected persons' (such as husband and wife, or father and daughter), the amounts above are divided by the total number of companies.
Details of how the tax system works with company cars.
In many small companies, the owners are also the directors, and this gives considerable scope for deciding how profits should be extracted from the company.
The relief is intended to produce a net tax rate of 10% on the disposal, although for those making modest gains there is a slight increase in the actual tax burden compared to that payable under business asset taper relief because the CGT annual exemption saves less tax under this relief (at 18%) than it did under taper relief (at 40%).
Expenditure incurred before the company year end might reduce the current year's tax liability instead of next year's. Bringing forward expenditure by even a few weeks on, for example, building repairs, advertising, sales and marketing campaigns, and any other item deductible from profits can accelerate the tax relief by twelve months.
The rules which determine what expenses can be deducted from profit for tax purposes are essentially the same whether you operate as a limited company, sole trader or partnership.
Benefits in kind are assessed on all directors and employees whose salary and benefits combined are £8,500 or more. Remuneration by way of benefits is often attractive to employees, especially if they are paying the higher rate of income tax, because the benefit may either be tax free or subject to less tax.
Details of corporation tax rates and bands.
The tax system has many fines and penalties for those that do not file or pay on time. Make sure you do not become liable to any of these penalties.
A summary of the main allowances available.
Capital allowances for the construction costs of industrial buildings or structures fall under several different headings, but collectively they are known as industrial buildings allowances.
HM Revenue & Customs charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments. The rate of interest paid on overpaid tax is lower than the rate charged on underpayments, and interest rates are adjusted in line with commercial interest rates.
In order to attract a deduction in computing the profits of a trade or business any expenses must be incurred wholly and exclusively for the purpose of the trade. Capital expenditure is not an allowable expense (capital allowances are claimed on these costs), and certain other expenses are barred by statute.
The Companies Act comprises approximately 1,300 sections and introduces new legislation which reflects the changing business environment.
There are over 100 forms prescribed by the Companies Act 2006. We list below these and include a link to all the forms which can be downloaded direct from Companies House.
We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. Our guide provides an overview of some of the key issues relating to a business trading as a limited company.
If time is an important factor, you can consider buying a ready-made company. The procedure will depend on the company formation agents', including online agents, requirements.
Who is a director? What are their legal responsibilities?
It is essential that you keep your company's statutory records up-to-date. Do not underestimate the importance of these records - they are definitive proof of the company's legal existence and its members.
The position of company secretary in a private company is now optional. Thus a company can operate with a sole director.
Ideas on how you can reduce the time we take to prepare your year-end accounts.
A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved.
As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future.
There are a number of schemes intended to encourage employers to make arrangements for their staff to travel to work by more environmentally beneficial means.