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Small Business Guides on Tax and Business Accounts

A selection of our most popular tax guides, focusing primarily on limited companies:

  • Limited Company Tax Basics
  • Tax rate and allowances 2018/19
  • National Insurance
  • PAYE
  • Home Office Expenses
  • Dividends
  • Expenses
  • Every business owner knows just how exciting starting a business or scaling up can be, but that’s not to say it doesn’t come with its own challenges. Increasing ROI and tax-efficiency are usually at the top of every small business owner’s agenda, and putting procedures in place so that you can enhance cash-flow through becoming tax-efficient doesn’t have to be hard. London based accountancy firm, 3 Wise Bears have put together five tax reliefs and tax incentives that every small business should know about, and how they can apply for them.
    [read the full article]

    Are you aware there isn’t long left until Making Tax Digital for VAT comes into force? From April 2019 VAT registered businesses with a turnover over £85,000 will need to ensure that all VAT returns are submitted digitally using the HMRC new platform known as Making Tax Digital (MTD). Around 40% of businesses that will be affected by MTD when it comes into effect are still unaware. Therefore, HMRC has recently started an awareness campaign to get businesses prepared before the date.

    [read the full article]

    The time of completing and filing a self-assessment tax return is a dreaded time for the self-employed. However, being prepared and having a good working knowledge of taxes and allowable expenses will surely make the task a little easier. Figuring out which expenses you can claim can be quite difficult when it comes completing the self-assessment tax return.
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    If you have started a business or are thinking about starting one, then you will need to decide on a business structure. You can choose to create a limited company, work as a sole trader or a partnership. Each business structure varies, especially when it comes to accounts and the bookkeeping. Sole trader owners are classed as self-employed, therefore they have their own set of tax rules and regulations to adhere to.

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    When starting a small business, one of the first things to be decided is the legal structure used for the business. It can either be a sole trader or limited company or a partnership. Setting up as a sole trader is the most popular legal structure in the UK, with approximately 3.4 million sole proprietorships created in 2017. Sole traders accounted for 60% of small businesses in the UK. There were also 1.9 million limited companies, making it the second most popular legal structure.

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    When you are self-employed you will pay your tax based on the income and expenses you show on your Self Assessment tax return. Here Simple Tax will give you an insight of the Self Assessment process and your legal obligations as a self-employed individual.

    [read the full article]

    If you set up a limited company, is appointing a limited company accountant to look after your affairs a statutory requirement, or can you take care of your accounting duties yourself?
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    Value Added Tax is charged on almost all products and services provided in the UK. The current standard rate is 20%. If your business becomes VAT-registered, you will charge VAT on all invoices you submit to your clients.
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    When your company turnover reaches the ‘VAT threshold’ (currently £85,000) in a twelve month period, you must register for VAT. Even if you don’t, there may be professional reasons why you would want to register anyway. So, how does the VAT registration for limited companies work?
    [read the full article]

    It is not a widely known fact, but company directors can receive statutory redundancy pay from their limited company under certain circumstances. If your company becomes insolvent and has to be liquidated, whether this happens on a voluntary basis or forcibly via a creditor’s winding-up petition, you may be eligible to make a claim.

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    If you decide to become self-employed, either on your own (as a sole trader), or with other people (as a partnership), you will be responsible for working out and paying your tax liabilities to HMRC.

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    Small business owners often make the mistake of believing HMRC only investigate the tax records of big players. Wrong. Last year HMRC were seen to be cracking down on tax avoidance and increased its investigations into smaller firms.

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    As a limited company owner, your company is liable to pay Corporation Tax on its profits. All UK companies are liable to pay tax on their profits, regardless of where in the world these profits were accumulated.
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    The government are wanting to renovate the way we process and submit our taxes through Making Tax Digital (MTD) for VAT. Overall the scheme will allocate every taxpayer with a digital ID, this means that businesses and individuals will be able to manage all their tax activities online, reducing errors and late submissions for a more efficient system.
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    It’s important to be aware of all the 2019 tax dates and deadlines, especially those that will effect your small business. Some of the tax deadlines such as the self-assessment and VAT tax return take considerable amount of preparation and time beforehand. So make sure you take note of all the dates that are relevant to you and your small business in order to get prepared.
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    When running a small business, saving money and cutting costs where you can should always be a priority. By being smart when dealing with taxes it can actually save you a considerable amount of money. If you are effectively dealing with your taxes, it could be the difference between a steady profitable business to one that’s just barely getting by.
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    Here are the main small business tax rates and allowances for the tax year  of 2018/19.
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    In this article, we take an overview of the main limited company tax you will be liable to pay (or collect) as a limited company, and when you have to pay them.
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    Salary aside, most limited company directors (and shareholders) typically draw down most of their income in the form of dividends. Dividends are distributed by companies of all types in order to return a proportion of company profits back to their shareholders. Here is the guide to company dividends and how to calculate dividend tax.
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    Here are some tax and finance tips which could help you save money as a limited company owner, based on our experience of running limited companies, and dealing with accountants and tax advisors over the past 15 years.
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