Registering late for self-employment – Tax implications
Starting in self-employment can feel daunting. There may be a website to create, a business bank account to open, pricing to set and possibly premises …
Buying another business through a company: Tax issues to consider
Most businesses expand via recommendation; however, there may come a time when a more effective method of expansion is needed such as acquiring\buying another business. …
Tax issues when a family company splits into two
There are many reasons why shareholder-directors of private family companies may decide to split a single business into two or more separate entities and have …
Charging interest where a director’s loan account is in credit
A director’s loan account (DLA) is an accounting record that tracks funds owed by a company and its individual directors. Usually, a DLA will be …
Can a director become liable for unpaid corporation tax?
Directors of limited companies are generally not personally liable for unpaid corporation tax as limited liability usually protects them. A company is a separate legal …
Using the business to pay school or university fees
For owner-managed business to pay school or university fees through the company can appear attractive, especially if the company has surplus cash. However, tax consequences …
Disincorporation of a companyÂ
In the not-too-distant past, incorporation was synonymous with automatic tax savings. However, successive governments have eroded these tax benefits. With additional administration and costs, many …
Are you running a business or a hobby?
Many digital platforms and online marketplaces in the UK, such as eBay, typically consider a seller to be a trader if they list items frequently …
Free fuel – Is it a worthwhile benefit?
Many employees see being allowed the use of their own company car as acknowledgement of their status in a company. While the employee will be …
Do ‘resident cruisers’ pay income tax?
An increasing number of people live on cruise ships. They sell or rent out their main residence and spend their days living on the waves. …
Must the cash basis be used?
For UK unincorporated businesses, the cash basis is now the default method for calculating taxable profits. Under this basis, income is taxed when received and …
The future for invoices and receipts
It is becoming increasingly noticeable that after a purchase is made in a shop or restaurant, the customer is asked ‘Do you want a receipt?’. …
