Use deferred income to save tax Sales invoices need to be recognised in the correct accounting period. An invoice can sometimes be deferred when preparing the annual accounts, thereby deferring corporation tax for another year also. If an invoice has been raised prior to the year end it is imperative to analyse any supporting contract or sales… Continue reading Use deferred income to save tax
Author: Mohammed Haque
Mohammed is a chartered accountant (ICAEW) with many years of experience in dealing with complex audit, accounting and tax matters.
Sole trader vs limited company tax
New and old businesses should all consider the pros and cons of sole trader vs limited company tax: http://www.youtube.com/watch?v=uByIoxZ6598&feature=youtu.be Sole trader When starting a business, being a sole trader is the easiest way to do business as this involves much less administration than a limited company. Its easy to register with HMRC at https://online.hmrc.gov.uk/registration/newbusiness The… Continue reading Sole trader vs limited company tax
Capital reductions to pay out dividends
Sometimes a company has cash but no distributable reserves, so it can’t pay dividends. Capital reductions can be used in certain circumstances to create distributable reserves which can then be paid in dividends. For example, a company may have issued shares at a premium but initially made losses. Once it becomes profitable and cash generative it may… Continue reading Capital reductions to pay out dividends