What are the consequences of unlawful dividends?

What are the consequences of unlawful dividends?

What are the consequences of unlawful dividends? Your company’s accounts for its last financial year have been prepared in draft. They show that you and your fellow director shareholders received more dividends than permitted by company law. This has tax consequences. What’s the most tax-efficient way to manage them? Insufficient profit The last couple of ... Read More
 
Leadership race means more tax uncertainty for owner managers

Leadership race means more tax uncertainty for owner managers

How is the scramble to replace the Prime Minister causing uncertainty for small company owners? The main rate of corporation tax is currently due to increase to 25% from April 2023. This, coupled with the increase in the NI and dividend tax rates, has eroded the tax benefits of small business incorporation considerably. As a ... Read More
 
Avoiding a VAT deregistration headache

Avoiding a VAT deregistration headache

Avoiding a VAT deregistration headache VAT deregistration A sole trader deregistered from VAT two months ago because of an expectation of reduced turnover. But they are concerned that they must re-register immediately because sales have still exceeded £85,000. Are their concerns justified? The next step VATREG18150 Deregistration Deregistration A business can deregister if it expects ... Read More
 
Business expense trap for companies and directors

Business expense trap for companies and directors

Business expense trap for companies and directors During the pandemic a company was struggling for cash. To help, the directors didn’t claim reimbursement of business expenses they incurred. However, the company can now afford to pay them back. Will this cause a problem? Personal or business cost Owner manager might help keep their company afloat by ... Read More
 
Do you need help to grow?

Do you need help to grow?

Do you need help to grow? Help to Grow is an initiative providing two schemes to smaller businesses with a view to helping growth. If a business wants to take advantage, what do they need? There are two schemes that fall under the Help to Grow umbrella. Help to Grow: Digital. This allows a business ... Read More
 
Don’t miss out on tax reliefs

Don’t miss out on tax reliefs

Don’t miss out on tax reliefs It’s an unfortunate fact that some of the most widely applicable tax reliefs are the most underclaimed. In an effort to encourage as many people as possible to claim these, HMRC has published a page giving a summary of the reliefs with a link for checking eligibility. What’s the ... Read More
 
VAT and Electric Vehicle Charging

VAT and Electric Vehicle Charging

A business owns several electric vehicles (EVs), which are used by employees for business purposes. Other employees own EVs and the company pays them a mileage rate for their business trips. How much input tax can the business claim on the costs? Current policy HMRC recently confirmed it is trying to introduce practical measures that ... Read More
 
GRANT OVERPAYMENTS HMRC STARTS TO ASSESS

GRANT OVERPAYMENTS HMRC STARTS TO ASSESS

Grant Overpayments HMRC starts to assess Grant Overpayments HMRC is currently writing to taxpayers that need to repay some or all of their self-employment income support scheme (SEISS) grants. What’s the full story and what action needs to be taken on receipt of such a letter? The fourth and fifth SEISS grants were calculated based ... Read More
 
IECnet appoints new COO, Katharina Rottenbacher.

IECnet appoints new COO, Katharina Rottenbacher.

IECnet appoints new COO, Katharina Rottenbacher. We are an active member of the IECnet association of accountants, auditors and tax consultants. This membership gives us a greater international reach for all our customers who operate outside the UK and need the global support and worldwide reach this association provides without the headaches of setting up ... Read More
 
Mitigating the NI rise

Mitigating the NI rise

Mitigating the NI rise The higher NI rates for 2022/23 will mean an employee on the average wage will pay around £230 per year more compared to 2021/22 and the employer will face a similar increase. How can they both legitimately reduce or avoid this extra cost? NI rise confirmed The government has committed to ... Read More