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Income Shifting – Are You Paying Your Partner

The tax rules seek to PREVENT someone gaining a tax advantage by arranging to divert his/ her income to family or friends taxable at a lower or nil rate. For example where a husband and wife own equal shares in their own company but the husband is the only earner. This piece of legislation is […]

Closing a Business

There is an important piece of legislation called ESC 16 which basically states that what’s left in a company on closure can be distributed to the shareholders as a capital distribution rather than as a revenue distribution as long as the amount does not exceed £25,000 without the company going through a formal dissolution process. […]

IR35 Personal Service Companies

Anyone that provides their services through a Limited Company needs to consider the legislation known as IR35 which was brought in by the government to prevent people paying substantially less tax and national insurance by operating through an intermediary such as a Limited Company instead of being employed directly by the client. Separate rules were […]

Don’t Mix Business & Personal Expenses

If  you run a small owner managed business it is not a good idea to mix your business and personal expenses. There is a very important principle and that is: A company is a separate legal entity in law even if you own all the shares This means that it is governed by company law. […]

Tax & Closing A Business

There is an important piece of legislation called ESC 16 which basically states that what’s left in a company on closure can be distributed to the shareholders as a capital distribution rather than as a revenue distribution as long as the amount does not exceed £25,000 without the company going through a formal dissolution process. […]

Income Shifting – Are You Paying Your Partner A Dividend?

The tax rules seek to PREVENT someone gaining a tax advantage by arranging to divert his/ her income to family or friends taxable at a lower or nil rate. For example where a husband and wife own equal shares in their own company but the husband is the only earner. This piece of legislation is […]

Dividend Or Salary

If you run a small family run business you can pay yourself either via remuneration or via dividends. The freedom to use the company profits in the most tax-effective way has long been the goal of many owners. HMRC have sought to challenge this in some circumstances such as under the ‘settlement legislation’ and special […]

Do Small Sole Traders Need An Accountant

If you are sole trader and your service is fairly simple and there are no complicated tax issues you could probably do it all yourself. There is plenty of information online at HMRC’s website and elsewhere, however the question I would ask you is this.   Is it good use of your time?   Accountants […]

Property & VAT

The VAT rules around land & property are very complicated, and I outline a very brief overview of some important considerations but as always it is vital to seek professional advice before starting any new project. The general principle is: Sales of new build residential property are zero rated Sales of new commercial buildings are […]

Your Home & Tax

The general rule is that your Principal Private Residence is exempt from Capital Gains Tax. Moving Home – The law allows you a certain period when you have bought a second home to live in but are still living in your old home (for instance when your new home needs to be renovated). This is covered […]