Export businesses often have the opportunity to benefit from zero-rated sales, but the key requirement for availing this advantage is to have evidence of export. The Pavan Ltd case (TC8712) is a prime example of how the complexity of VAT regulations and the approach taken by HM Revenue & Customs (HMRC) can lead to confusion and misinterpretation of the rules.
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The 2021/22 self-assessment tax return deadline was January 31st, 2023 for online filings and October 31st, 2022 for paper tax returns. In rare circumstances, the HM Revenue and Customs (HMRC) may grant you a different deadline, but in general, extensions are not possible. Any outstanding tax should have been paid by January 31st, 2023, or else interest will be charged on late payments…. Continue Reading
VAT, or Value Added Tax, may not be the most exciting topic, but as a business owner in the UK, it’s essential to understand it. It is a complex and ever-changing system, but non-compliance can result in hefty penalties and fines. In this post, we’ll demystify VAT and show you how to navigate it easily…. Continue Reading
Under the law, a limited liability company has the same status as a natural person. Because of this, you cannot treat a limited company’s bank account like your own and take money out whenever you choose.
It’s natural to feel that you have free rein over the cash flow of your limited liability business at any time after it’s been established. This needs to be corrected and may result in legal and financial issues for directors of failing companies…. Continue Reading
This post will review what makes a company dormant. A dormant company is a limited liability company that is not trading (i.e., not conducting business) and receiving no other income. In such cases, the company is deemed “inactive” for purposes of Corporation Tax.
Your company can remain dormant and still file annual accounts with Companies House. However, you must notify HMRC as soon as you can. The Corporation Tax division can be reached by phone, email, or letter…. Continue Reading
If you are considering operating as a freelancer or contractor through your limited liability business, you must rapidly grasp the IR35 laws.
The key issue hinges on a section of legislation known as IR35. HMRC believes that IR35 “protects hundreds of millions in tax income.”
However, the contracting population of the United Kingdom believes that IR35 is a weight around their necks. It imposing disproportionately high compliance costs on one-person firms.
What are the IR35 rules that a new contractor must be aware of?… Continue Reading
One of the greatest benefits of conducting business through a corporation is having “restricted liability.” This means that unless you have personally guaranteed a liability, such as to a bank or landlord, you are not accountable for the company’s debts in the event of bankruptcy.
Nonetheless, a major caveat to this notion of “limited liability” is that a director might be held personally liable by a liquidator if they enabled the company to continue trading after it became apparent that it would be liquidated.
This is because it is considered unfair to suppliers and other creditors to continue accepting credit when you know you cannot repay.… Continue Reading
Plan to start your own small business or work on your own? Many people decide to work on their own. So, this makes sense. Registering as a sole trader is simple and inexpensive, making it an excellent method to experiment with self-employment.
But it’s not all sunshine and rainbows when you work for yourself. Before you can enjoy the profits you’ve worked hard to earn, you must meet your legal obligations and take care of the paperwork. Some risks come with being a sole proprietor.
In recent years, accounting software for small businesses has seen enormous changes. Thankfully, cloud computing has rendered obsolete the practice of purchasing and installing bookkeeping software on a local computer…. Continue Reading
We are pleased to provide guidance on how to start a business. These include some tips for getting started, like writing a business plan and understanding taxes, benefits, and the law as a new business owner.
Even though it may seem hard, you could become a part of one of the six million small and medium-sized businesses in the UK if you are passionate and work hard.
Learn how to start a business in the UK by reading our step-by-step guide…. Continue Reading
