Sole Trader Expenses: What Can You Claim?

As a sole trader, your business is likely to incur various running costs, some of which can be deducted from your profits to reduce your taxable income, meaning you pay less tax. In this guide for self-employed workers, we explain which expenses are allowable, how to make a claim for expenses and what records you […]

Hiring Happy Employees (Boost Morale & Productivity!)

Boosting employee happiness is one of the most effective ways for an employer to maximise productivity, reduce absenteeism, attract talent and create a compelling employee brand for their business. Traditionally, organisations have sought to improve output among their workforce by focusing on material rewards such as pay rises, bonuses or other employee benefits to incentivise […]

Corporation Tax & Trading Loss

If your company or business makes a loss from trading, the sale or other disposal of a capital asset, or on income from property, and it is liable to pay Corporation Tax, relief for corporation tax losses may be available. Tax relief for corporation tax losses is obtained by offsetting the loss against other profits […]

HMRC Travel Expenses & Temporary Workplace Rules

Employees who travel for work purposes may be eligible for tax relief on travel expenses that are not reimbursed by their employer. The general rule is that travel expenses between an employee’s home and workplace are not allowable under HMRC rules, while expenses for travel between the employee’s home and a temporary workplace may be […]

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 […]