Put simply, a commercial lease agreement is a legally binding contract between a landlord and a business owner outlining the terms of renting a property. However, understanding what to look out for in a commercial lease agreement often requires a professional to ensure you’re making the best choice for your business.
In this guide to uniform tax, our accountants explain the criteria for tax-deductible staff clothing and workwear, the type of tax deductions that are available, and how your business and your employees can claim them.
In an earlier article we compared the benefits of setting up a limited company with those of remaining a sole trader. Here, we consider the advantages and disadvantages of setting up a public limited company (PLC).
If you’re a contractor in the construction industry, you need to be aware of your obligations under the Government’s Construction Industry Scheme (CIS). Essentially, this is a scheme similar to PAYE that requires contractors to withhold 20 or 30 percent of any payment due to a subcontractor and pay the deduction to HMRC.
An income tax loss can occur at any stage in your business whether you’re incurring initial costs to set up your business or hit trading problems at a later stage. And, the past couple of years, as we lived through the pandemic, showed just how vulnerable self-employed people and sole traders are to changes in economic conditions.
If you run a small business and you have employees who are working away from home - occasionally or regularly - it’s essential to understand HMRC’s rules on paying the expenses they incur for meals, overnight accommodation or other forms of subsistence.
Corporation Tax is payable on trading profits - in its simplest form, the income of the business after all allowable expenses have been deducted. The calculations for the final taxable profit figure are more complicated than that and it pays to take professional advice so that you can minimise your Corporation Tax liability.
If you come across the term liquidity ratio, you might think it’s just a technical accounting term. In fact, it’s a financial measure that provides you with an important indication of the financial health of your business.
Breaking even is a pretty straightforward concept to most business owners, but there’s a lot more to your break-even point than you may realise. On a rudimentary level, breaking even is when your total business costs are equal to the revenue you generate, but you can gain a lot more insight about your business from running a regular break-even analysis.
As of 1 July 2021, new rules will be introduced by the EU regarding VAT in e-commerce. The new rules will extend the Mini One Stop Shop (MOSS) that is currently available for B2C sales VAT accounting regarding Telecommunications, Broadcasting and Electronic Services (TBES), to all B2C service supplies.
The Chancellor announced a number of changes in the 2021 Spring Budget that will affect you if you are self-employed, work as a contractor through a limited company or run a small business. Some of the changes take effect immediately; others will impact your business in future tax years.
The Spring Budget recognised that the impact of COVID on small business is not yet over. Various support schemes and loans for businesses and the self-employed continue, but, at the same time, the Chancellor has begun to claw back some of the costs of that support with an announcement of future tax rises.
If you have been buying or selling cryptocurrency and have made significant gains, you should be aware that HMRC is now taking a greater interest in these types of transactions and considering the tax implications.
If you remember the theme tune from ‘Only Fools and Horses’, you’ll know that Del Boy was a great advocate for ‘no income tax, no VAT’.
In this article, we’re not recommending Del Boy’s practices, or suggesting you pay with a briefcase full of used fivers, but explaining how you can remain within HMRC’s rules while avoiding VAT on a commercial vehicle purchase.
The Chancellor of the Exchequer, Rishi Sunak, announced in his Budget that this autumn would begin the preparation work for a new, post-pandemic economy. In his statement to the House of Commons, Sunak announced that he is, “Backing business. Because our future cannot be built by government alone, but must come from the imagination and drive of our entrepreneurs.”
Here are the key announcements for small businesses.
Max Whiteley, the head of accounts at our new Liverpool office, joined global accounting software firm Xero on stage at the Accountex Summit North. Together they gave some great advice and thoughts around the digitalisation of income tax and how to prepare for the new regime.
Our tax accountants explain the process of charging and reporting VAT in different scenarios (such as paying someone who is not VAT-registered), and outline the steps you need to take to become VAT registered.
In this guide, we’ll explain how crowdfunding works, its benefits compared to other methods of financing and the factors that determine a successful crowdfunding program. We’ll also outline the services available from the best crowdfunding sites in the UK.
In this article, we set out an example of the calculations you need to make to find out how much you have saved on your tax bill. The savings apply to both profitable and loss-making companies and we have included examples for each.
Accounts payable probably isn’t the most glamourous element of your business, but it’s undoubtedly one of the most important. Getting accounts payable right can have a substantial positive impact on your organisation because it affects some of the most fundamental aspects of doing business. Here’s how it all works.
If you’re considering pension options for yourself or for key members of your small business, you may be weighing up two sets of initials – SSAS and SIPP. SSAS refers to small self-administered schemes and SIPP is a self-invested personal pension.
As business owners, bookkeeping and accounting can often be the part of the role we dread the most – and terms like trade debtors and trade receivables certainly don’t help. The fact is, to all intents and purposes, many organisations out there can treat the two terms as one and the same.
The short answer to the question is yes, but only in certain circumstances. Generally, a small or large limited company can pay its directors a salary, but it must be paid net of Income Tax and National Insurance contributions.
EMI is a government scheme that allows you to offer your team share options in a very tax-efficient way. And, the nature of the scheme makes EMIs a powerful incentive that motivates employees to add value to the business.
If you employ people in your business, you have a number of options for rewarding them in addition to paying wages or a salary. One of the most flexible options is to offer benefits-in-kind (BIKs), sometimes known as fringe benefits.
In this article, we look at the requirements for working from home or running a business from home from both perspectives – tenant and landlord. We also set out the expenses anyone working or running a business from home can claim against their income tax assessment.
While a trading loss is never good news for any business, it’s important to use that loss efficiently to reduce the tax bill you may have paid in earlier years. If you are an early-stage business in your first three years of operation, you may also use the losses incurred before you started to trade to offset any initial trading profits.
In the eyes of HMRC, VAT errors are your responsibility to put it right. If you don’t correct the VAT error in the right way or at the right time, HMRC has a long list of conditions under which they can impose penalties, a process known as ‘The Penalties for Errors regime’.
If you use your own car for business travel, you are entitled to claim certain costs as an allowance against tax and that could reduce your tax bill. The way company car and mileage allowances are calculated in the UK is different for employees and self-employed people. In this article, we explain the allowances for employees.
A Statement of financial position is an important financial document that helps you run your business efficiently and profitably. It provides a guide to the financial health of your business, so it’s essential to understand its components and their significance.
In this brief guide, we’ll explain more about the recognised methods for taking money out of a business account for personal use, and provide guidelines for dealing with business payments for personal expenses.
This article will explain the different aspects of R&D accounting in more detail. However, you may find it useful to take professional advice to ensure that you are claiming the correct level of expenditure for your specific R&D project.
For millions of self-employed people in the UK, there was relief that the Government’s support scheme is set to continue following announcements in the 2021 Spring Budget. The Self-Employment Income Support Scheme (SEISS) was set to close at the end of February 2021, but has been extended to cover two further phases that will run until the end of September this year.
With cryptocurrency transactions, tax rules can get slightly complicated, and you could incur several different liabilities, like income and corporation tax, stamp duties, and – depending on transaction types – VAT.
After much pressure from professional bodies, HMRC has finally backtracked its threats to stick with a fast-approaching deadline for late filing penalties. Taxpayers will now get until the 28th of February to file their online returns before they face any fines.