Do you need to file a tax return?

The following guidelines are reproduced from the government’s website: You must send a tax return if, in the last tax year (6 April to 5 April), you were: self-employed as a ‘sole trader’ and earned more than £1,000 a partner in a business partnership You will not usually need to send a return if your only income is from your wages or pension. But...

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All is not lost

If your business makes a trading loss its ability to survive the loss will depend on a number of issues. They include: Did your business have sufficient reserves to absorb the loss? If not, are the business owners able to introduce new capital to cover the losses? Or, Are the business bankers willing to step in and support the business with additional funding? In...

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Getting ready for EU exit 31 October 2019

HMRC has published a check list of issues you will need to deal with prior to 31 October 2019. The check list has been sent to all businesses that already trade with the EU or the rest of the world. The text of the letter is reproduced below, and this contains the links to the step-by-step guides. We can provide assistance with the...

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Can you claim back the VAT when you buy a car?

The short answer to this question is a resounding “no”, but as always with tax, there are exceptions. Obviously, if you are in business and not VAT registered, you cannot reclaim the VAT added to any of your purchases. If you are VAT registered HMRC has published the following guidance for VAT recovery when acquiring or leasing a company vehicle: Buying a...

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How much tax do you pay on your dividends?

If you own a small limited company your shares entitle you to draw a return on your shareholding – in common parlance these returns are called dividends. A company can only pay dividends if it has current or accumulated tax-paid reserves. For most smaller companies this will be described as reserves or retained profits on your company balance sheet. As these reserves...

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Does your employer pay for your private petrol?

A reminder that you can avoid the hefty car fuel benefit charge if you drive a company car and your employer pays for your private fuel. One way to achieve this is to repay your company for the private petrol provided. Many employers have an arrangement with their company car drivers to obtain reimbursement of any private fuel provided. Usually, the employee...

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Muras Matters: CT61 and Interest Paid By Companies

Background Certain types of interest and other payments made by UK companies are required to be paid net of income tax, with the tax deducted payable to HM Revenue & Customs (HMRC) and reported using a CT61 quarterly return. This is in contrast to the position with banks and building societies where, since April 2016, interest has been paid gross. We have recently encountered a few...

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Unclaimed estates

There is nothing more intriguing that the notion we may be due untold riches from undisclosed sources. For example, do you have any premium bonds, and did you notify the registrar the last time you moved to a new house? And did you know that the estates of deceased persons whose beneficiaries or family cannot be traced are held by the...

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Do you have a December year end?

December is probably the second most popular trading year end for businesses; the most popular being the 31 March. Your end of year planning should include a review of your results – prior to your year end – so that there is an opportunity to make any advantageous changes. From our perspective, there is nothing quite so depressing as being made...

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