SETTING UP A NEW BUSINESS AS A LIMITED COMPANY.

Setting up a business

Setting up a limited company in the UK,& things that you need to know. Starting something new can be very daunting process to anyone. The reason why most people are nervous about having a limited company is because of all the compliance issues involved. Also, most people have heard about daunting stories from penalties that […]

IS YOUR EXPENDITURE A CAPITAL OR REVENUE EXPENDITURE?

The nature of the expenditure that is spent in business is very important. The reason for this is that it determines the accounting and tax treatment. Most times we do not have a choice because we do need to acquire them to help our business growth. In this blog post, I would like to explain […]

THE MAJOR CHANGES TO PRIVATE SECTOR, IR35 CHANGES FROM APRIL 2020

IR35 in private sector

The IR35 legislation is a legislation that has been used by HMRC since 1999 as an anti-avoidance tool for contractors that run their business through a limited company. Since April 2017, The HMRC introduced some new changes to the way IR35 was applied in the public sector. How IR35 legislation in the private sectors would […]

CLAIMING EXPENSES, REDUCING TAX AND NATIONAL INSURANCE!

Claiming Business Expenses

Claiming the right expenses are a crucial part of running a business. This is because claiming the right expenditure will result in tax relief claimed in the tax year. Therefore reducing the income tax, corporation tax and national insurance paid by the taxpayers. Why is claiming the right expenses important? The consequence of not claiming expenses or […]

RATE TO CLAIM WHEN APPLYING FOR  CAPITAL ALLOWANCE RELIEF

Claiming capital allowance

Capital Allowance rates vary depending on the plant and expenditure. To explain the rate I will be using the various percentages associated with each allowance. Zero percentage on capital expenditure. 0% simply means the business owner can’t claim capital allowance on that plant and machinery. Example of such are building, or floors or any other […]

WHAT TO WATCH OUT FOR WHEN INVESTING ON CAPITAL EXPENDITURE

Claining tax relief on Capital Expenditure

  Business must invest in capital expenditure so as to be more productive. It might either be just a computer to a factory or to special machinery in a factory. The business owner usually always want to have tax relieve on these investments as soon as they would if they were revenue expenses. THE DIFFERENCE […]

Entertainment in business

Saving tax on Employee Gift

  Entertainment in business  Most business do give gifts to their employees and provide entertainment to their clients.I have explained in the blog,The tax consequence of doing this.   Here is the issue with business entertainment: Entertainment in business is an allowable accounting expense when it relates to the business, however, could be disallowable for tax […]