Archive:September 2022

Please find below all the articles from September 2022.

Are you trading?

Thursday, September 1, 2022

Covid -19 had a devastating impact on many businesses with significant numbers closing for good. However, many workers who were made redundant or furloughed took the opportunity to set up their own businesses. According to the Government’s December 2021 report ‘Business Statistics’ an estimated 810,316 new businesses were launched in the financial year ending in 2021 — the highest number on record. The report also noted that there had been a distinct fall in the number of employees and said that it was believed that the decline was…

Have you taken an ‘illegal dividend’?

Thursday, September 1, 2022

Anyone who invests in a company is taking a chance, hoping that the money will not be wasted, and that the directors, as representatives of the company, will use the money in such a way that the company’s profit increases. In return for taking this chance, a shareholder receives ‘payback’ usually in the form of a share in the distribution of profits via a dividend. The payment is not an absolute right and unfortunately some directors/shareholders of family owned companies believe that as long as there is cash…

One way of getting money out of your company – charge rent

Thursday, September 1, 2022

Although dividends are generally the most tax-efficient method by which money can be extracted from a company, renting a property you own to your company can be more or as tax efficient depending on your marginal tax rate. Whether charging rent is tax-efficient needs to be looked at overall by not only taking into account the director’s immediate income tax position and the company’s tax situation, but also the future capital gains tax (CGT) position when the property or the company itself is eventually sold.

Benefit to the company

The…

Latest news round-up

Thursday, September 1, 2022

Making Tax Digital – a new penalty regime for all

The current penalty system for late payment and/or late submission of tax returns differs depending on which tax is levied. For some time HMRC has wanted a consistent approach across all taxes and the opportunity to make it so has come with the implementation of Making Tax Digital (MTD) starting with Making Tax Digital for VAT (MTD for VAT).

As the first stage of HMRC’s ‘roll out’ of the MTD initiative, all VAT-registered businesses must keep records in a digital…