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

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.

 

Here are 8 things you need to know about becoming a sole trader and starting a business

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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

 

If you establish a small business as a limited liability corporation, your annual profits will be liable to small business Corporation Tax.

Your accountant is your first line of support. However, it is the responsibility of the board of directors to oversee the company’s tax compliance with the support of their accountants.

Duties as a Director

Your duties as a director of a small business limited liability company include verifying the accuracy of the corporation tax liabilities, filing the corporation tax return (form CT600) with HMRC on time, and making timely payments of the corporation tax owed.

If you are forming a limited liability company for the first time in the United Kingdom, you may find this summary of the corporation tax regulations applicable. Information about the upcoming tax increase in 2023 is also included…. Continue Reading

It might be challenging to adhere to all tax regulations. It is not surprising that some small businesses occasionally experience tax issues. It’s understandable why many businesses worry about tax compliance when you factor in the stress of a routine tax examination, even if you have nothing to hide. It pays to get expert advice and move immediately if you have tax issues or are under investigation for them rather than just hoping for the best.

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