What is Ordinary Share Capital?
When running a limited company, it’s important to understand the different legal concepts involved, from both an accounting and company law perspective. In particular, a number of key UK tax provisions turn, in part, upon the meaning of ‘ordinary share capital’. Equally, it’s important to understand the benefits and drawbacks of ordinary share capital, when […]
P45 Form (Employers’ Guide)
Employers play a crucial role in ensuring the PAYE system works effectively, especially when it comes to issuing a P45 when an employee leaves a job, or requesting a P45 when an employee starts a new job, and submitting the relevant starter and leaver information to HM Revenue and Customs (HMRC). Below we set out […]
P60 Form Guide for Employers
As an employer running payroll, you have various year-end obligations, from sending your final payroll report to HMRC to giving each of your employees a P60. In this guide, we explain the rules relating to P60s, including what these are, who needs to be given one and when, how to issue a P60, what information […]
What is the Inheritance Tax on Property?
Inheritance tax relates to the estate left by a person when they die. This could be the amount of money they have, property they own or any other assets that belong to them. Gifts made during that person’s lifetime may also be affected by inheritance tax. There is generally no inheritance tax on property passed […]
How to Prepare a Statement of Financial Position
Preparing a statement of financial position is just one of the many financial reports that will need to be regularly generated when running a limited company. It’s often best to secure professional advice and support to prepare these types of reports, although it can still be useful to understand the principles and purpose behind this […]
Construction Industry Scheme (CIS) Guide
If you’re self-employed in the construction industry, you may need to register under what’s known as the Construction Industry Scheme (CIS). Equally, if you’re a construction-industry contractor, with sub-contractors working for you on a self-employed basis, you’ll need to be CIS registered. Below we look at what the CIS is, the CIS registration process for […]
Directors Loan Account (What Are The Rules?)
Borrowing money from the company can make financial sense for directors, compared with using a commercial lender. But using from the company bank account for personal expenditure has to be managed carefully, as complex tax and accounting rules apply. Failure to follow the rules can result in HMRC action against the director, such as disqualification. What […]
What is a Directors’ Service Contract?
Directors’ service contracts have an important function for companies. Not only are they are used to define the role, responsibilities and remuneration of the company’s directors, they also provide key legal protections to safeguard the interests of the business. Since directors are the most senior employees in the company, the directors’ service agreement is used […]
Winding Up a Company
If you’re a business owner looking to wind up your limited company because it can’t pay its debts, or a creditor wanting to petition for a winding up order because a company owes you money that it can’t repay, the following guide will help you to navigate the legal process. Sometimes winding up a company […]
Money Laundering Reporting Officer Responsibilities
What is a Money Laundering Reporting Officer? The Money Laundering Reporting Officer (MLRO) is the person in an organisation who is nominated to receive disclosures from employees within the firm regarding suspected money laundering. Sometimes known as the ‘nominated officer’, the MLRO is then responsible for deciding whether to report these concerns to the National […]
Business Property Relief & IHT
If you own a business, or an interest in a business, your estate may be entitled to relief from Inheritance Tax. Business Property Relief (BPR) provides relief from Inheritance Tax (IHT) on the transfer of relevant business assets at a rate of 50% or 100%. Business Property Relief and IHT Inheritance Tax is the […]
EIS Tax Relief Explained for Investors
EIS is a tax relief scheme created by the UK Government to encourage investment into startups and early-stage businesses. As an investor, EIS benefits you by offering potentially significant income tax and capital gains reliefs when you make an investment into an EIS eligible startup or business. As a business, EIS benefits you by making […]
IR35 Umbrella Company Pros & Cons
Faced with being deemed an employee and not being able to work through their own personal service companies, many contractors will be prompted to work through different models, with umbrella being one option. With the private sector off-payroll rules due to hit the contracting sector in April 2021, does the IR35 umbrella company model offer […]
Outside or Inside IR35? (Check Your Status)
Whether an individual is determined to be outside or inside IR35 will have a significant effect on their tax liability. In this guide, we explain the IR35 rules and how they impact both workers and employers in the contracting community. Due to the COVID-19 outbreak, the government has delayed the scheduled changes to the rules […]
Business Asset Disposal Relief Guide 2021
Known as Entrepreneurs Relief prior to 6th April 2020, Business Asset Disposal Relief is a tax relief that the seller of a business can benefit from on sale. It is an attractive tax incentive, used by the UK Government to encourage individuals to set up and invest in a business by rewarding them for their […]
What is the Loan Charge?
In December 2019, the UK government announced it would make a package of changes to the loan charge, a measure designed to tackle a form of tax avoidance known as disguised remuneration. The government made these changes in response to Sir Amyas Morse’s independent review of the loan charge policy and its implementation. This guidance […]
List of UK Tax Codes 2020
Tax codes are used to categorise how much tax and National Insurance you have to pay each year. For most people in the 2020/2021 tax year, for example, the basic tax code would be 1250L. If certain circumstances apply, your tax code might be different, for instance, if you’ve got more than one job or […]
Use of Home as Office (Claim Allowable Expenses)
What are allowable expenses when using the home as office space to work? Depending on the work you do, you might be able to claim expenses back for using your home as an office, either by claiming for office equipment like computers and furniture or even renting part of your home to your company. This […]
SEIS Scheme Tax Relief Guide
The SEIS scheme is one of four venture capital investment schemes designed to help small companies to raise money when they begin to trade. What is the SEIS Scheme? The SEIS scheme, otherwise known as the seed enterprise investment scheme, is available to small, early-stage trading companies to support raising finance by offering […]
New Covid-19 Recovery Fund: £20 Million in Grants For Small Business
The Government has announced it is offering £20 million in small business grants as part of its push to kickstart the economy. Grants of between £1,000 to £5,000 are being made available to provide much-needed cash injections to small businesses in England that have been hit by the pandemic. The grants have been launched to […]