aziz, Author at Southside Accountants Wimbledon

7 tax changes you need to know if you’re self-employed

Jun13

Being self-employed, we understand you have a lot to manage including getting to grips with big tax changes which can make all the difference to your business’ cash flow and therefore failure and success.

The 7 tax changes you need to know if your self-employed include an increase in personal allowance, National Insurance Contributions (NICs) changes and digital taxation.

Read on to see how you can keep yourself on the right side of the tax law and position yourself for tax savings if your self-employed.

Expenses: what can I deduct to reduce my tax bill?

Jun11

Claiming a tax deductible expense, we know, is a minefield. There are so many rules and expenses to consider, with the rules changing all the time, how do you know what expenses you can deduct legitimately to reduce your tax bill?

We are all aware of the publicity of MPs being embroiled in controversial expenses claims, and this has prompted many small and medium sized businesses to consider what can – and cannot – be claimed. A considerable amount of legislation exists around defining tax deductible expenses, and the rules are constantly being reviewed and clarified, hence the need by many businesses to entrust an accountant to guide them through this murky process.

Are you due a tax rebate? Only a year left to claim backdated marriage allowance

Jun6

Couples only have till April next year to claim the full marriage allowance rebate available to them, dating back to the first tax year the relief came into force in 2015/16.

This falls into the standard timeline of a four-year backdated period to claim any type of tax refund from HMRC. This means that if you were to miss the 5^th April 2020 deadline next year, your claim for the tax year 2015/16 will be closed and you would only be eligible to request a refund from the 2016/17 tax year onward only.

Don’t miss out, find out if you are eligible to claim the marriage allowance and how to make a claim.

Tax free bonuses to your employees

Jun4

If you are a business owner and are keen to reward your employees with bonuses, but would rather not have tax on bonuses, you do have the option to set up an Employee-Ownership Trust (EOT) which allows founding shareholders or owners of the company to give shares to employees tax efficiently as well as gift employees a tax-free bonus to a certain level per annum which is not subject to income tax (but does incur National Insurance Contributions charges).

Business owners: Are you aware of Entrepreneur’s Relief?

May30

Both sole traders and limited company owners can benefit from Entrepreneur’s Relief, which allows a trading business to experience reduced rates of capital gains when selling a business or ceasing to trade.

The relief has been scaled up since it was first introduced in 2008 where its starting point was set at lifetime gains of up to £1 million but now with the level of £10 million in the current tax year 2019/20, there is a potential life time saving of tax of up to £1 million, so a very important tax relief all business owners should be aware of.

How to file dormant company accounts

May28

A company that has no transactions and therefore receives no income in a given accounting period is considered a dormant or an inactive company by HMRC. A dormant company is nonetheless required to file dormant accounts to formally inform HMRC of the inactive status of the company and on an annual basis.

The process of filing dormant accounts is straightforward as only a high level of detail is required and if completed online, the process is free and approved quickly by HMRC. But as you are not proactively asked by HMRC to file dormant accounts and the onus is on you to do so at the right time and in the right format, we have provided a guide on how to file dormant company accounts.… Continue Reading

Tax planning for small businesses

May22

As we progress through the first quarter of the new tax year, we consider the various tax savings options available to you as an individual and for your small business to keep your profitable and enjoy good cash flow management.

Read on for our Tax Planning Guide for Small Businesses.

Your Go-To Guide: Dividends

May21

As a company director of a profitable limited company, you will want to strike a balance in investing profit back into your business and taking funds out for personal use, all the while ensuring you do so in a tax efficient manner that works for you. It is possible to take a salary and/or dividends from your company in a tax efficient manner for personal use.

You have two options to extract profit from your business for personal use – either through a salary and/or dividends. The dividend option is the most tax efficient option of the two and in this article we share an overview of how dividends work and how you can use them to your advantage without disruption to your profitable business.

Limited company: advantages and disadvantages

May16

Did you know that the limited company business structure is the most popular setup for businesses in the UK?

If you’re thinking about taking the next step for your business and becoming a limited company, then read further to check you’re making the right decision. In this article we look at the advantages and disadvantages of a limited company structure.

What is a limited company?

A limited company is a type of company which allows the business owner to keep their own assets and finances separate from the business itself. This means that the business is an entity in its own right.

Compared to other types of business structures, the main difference is that the company’s shareholders are personally protected, so there’s no risk to personal wealth.

Can I reclaim VAT on cars used for business?

May14

This is a question we get asked by our clients frequently and although the law states clearly that only cars used solely for business purposes by firms such as driving schools, car hire businesses or tax firms can reclaim VAT on cars, there are grey areas to consider.