Understanding business accounts

Whether you are a new startup or a seasoned investor, understanding business accounts is crucial to staying on top of your business. The numbers don’t lie and will tell you if the business is profitable, if new strategies are working or if remedial action is required. They will also be able to tell you about the financial… Continue reading Understanding business accounts

Residential property tax planning

Residential property can be a lucrative business, but profits or gains will be subject to tax. In this post we discuss some of the property tax planning options, including using limited companies or LLPs, trading vs investment property, capital gains tax and entrepreneurs relief. Please download the full report on residential property tax planning for full details. Trading stock vs Investment… Continue reading Residential property tax planning

IR35

What is IR35 IR35 ensures that contractors who are effectively “shadow employees” pay tax like normal employees. There is legislation for substance over legal form of a relationship between a contractor (or freelancer or locum) and client. Some contractors use limited companies to invoice “clients”, but the overall facts suggest they are actually employees and are “inside of IR35”. The… Continue reading IR35

Use deferred income to save tax

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

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