Search results for year end

46 articles found

• Stock Count

  What is a Stock Count? A stock count is the process of verifying the value of the inventory that your business has on hand, at cost price on a particular date (typically your company's year end).

• Visa Costs

  Many startups hire people from abroad, and then pay for their visa costs when the employee moves over to the UK. Whilst this does seem like a normal business expense, there are some important

• Assets sold to employees

  The information below is useful in understanding the taxable benefits and VAT treatment in relation to the sale of assets, such as computers or laptops, to employees. This also includes the gifting

• Additional Pension Contributions

  It is often advisable to make additional pension contributions in order to maximise tax efficiency. In fact, it's one of the best ways to withdraw money from a company and I am often advising our

• Tas' Top Ten Tax Tips

  This guide covers some of the basic but also most important elements of tax planning. 1. Companies pay Corporation Tax on their net profits at a rate of 19%. Corporation Tax is due nine months after

• Staff Entertainment

  Staff entertainment Staff will be taxed when 'entertained', i.e. provided with food and drink outside of the normal course of business. The value of the entertainment they have received will be

• R&D Tax Credit Cap from April 2021

  The R&D SME Tax Credit Cap will be introduced from April 2021. These measures have been confirmed in order to prevent abuse of the R&D SME scheme and deter fraudulent claims. The cap was originally

• Intro to Armalytix

  What Is Armalytix? Armalytix securely delivers bank statements across multiple banks and accounts, directly from you to us, using open banking technology. Why Do We Use It? It is a fast and simple

• Audit Exemption and Thresholds

  A company can be exempt from having an audit if they fall in one of the four categories: 1. Dormant company A company that is not doing any business(trading) and doesnt have any other income for

• Tax Free Benefits

  Tax-Free Benefits – A guide for Employers This guide is only relevant if you are a registered employer and pay your employees through PAYE. A sole director on a minimum salary would also qualify for

• Glossary for share schemes

  Exercise price: the price that an employee pays per share, normally an agreed value set at the outset of the option agreement. Exercise of option: the conversion of an option into shares by an

• How to set up an EMI scheme

  Setting up the scheme Having consulted an expert adviser like Barnes & Scott, the company and its board of directors must establish the scheme particulars. This process would determine: which

• Strategic Reports

  This article is relevant to companies that report under FRS102 and are not longer considered to be 'small' companies. Generally this means turnover > £10m, balance sheet > £5m and/or more than 50

• Short-term business visitors

  Short-term business visitors (STBVs) are individuals who are not resident in the UK for tax purposes but make working trips to the UK. There are two PAYE scenarios that apply to STBVs: Working for a

• EMI Filing Requirements

  Deadlines Legal documents and board minutes must be signed, including the option agreements before the valuation expires – this is usually 60 days from the date of the HMRC valuation agreement

• What tax relief is available to investors?

  There are five tax reliefs available to investors in companies qualifying under SEIS or EIS. The basic rules are as follows: 1. Income Tax Relief 50% of the amount invested under SEIS can be offset

• Impact of state aid on SEIS and EIS

  What is State Aid? State aid is any advantage granted by government on a selective basis to any organisation that could potentially distort competition and trade in the EU. The definition of state

• Crypto currencies - Quick Overview

  Crypto gains are usually treated like capital gains. This means they are taxed at 20% for gains over the annual exempt amount of £12k. Gains or losses are calculated based on realised amounts, i.e.

• What is a knowledge intensive company?

  Knowledge intensive companies (KICs) can get more funding through venture capital schemes than other types of companies. We'll look at this in terms of the Enterprise Investment Scheme (EIS). Should

• How much money can I raise under SEIS or EIS?

  The maximum amount that can be raised under SEIS by a company is £150,000. For EIS this limit is £5,000,000 per year, and £12,000,000 in a company's lifetime. Typically, companies will raise their

• Gifts to Clients

  Gifts to clients HMRC allows you to give a gift worth up to £50 to a client in each tax year with the following conditions: It must be business related; it cannot be alcoholic, food, tobacco or

• Pre Due Diligence Review

  When entering into a due diligence there are some key areas investors or purchasers tend to look at, often with a view of finding holes so that they can reduce your company valuation. Being aware of

• Changes to R&D Tax Credits from April 2023

  Reduction in Benefits From April 2023 the additional deduction for development expenditure will decrease from 130% to 80% and the payable tax credit rate will decrease from 14.5% to 10% (unless you

• Introduction to EC Sales

  What is the EC Sales List? Sales of goods and services to EC (European Commission) businesses tend to be zero rated for the purposes of VAT. The EC Sales List is a quarterly report of these sales to

• When is the best time to create an EMI share option scheme?

  In theory, as quickly as possible, ideally before the company has built up any value. The sooner you start, the more likely it is that employees will be granted options linked to a low share price,

• P11D Benefit Reporting

  What is a P11D? The P11D form is used to report benefits in kind tp HMRC. These are items or services which you (or your employees) receive from your company in addition to your salary, such as

• Annual Staff Parties

  Companies can hold an annual staff party that is not taxable on the employees, provided the aggregate cost per head is less than £150. The aggregate cost should be calculated including VAT and

• Mobile telephones

  All companies are able to provide each of their employees (including directors) with one mobile phone. This is treated as a tax-free benefit, even if there is significant personal use. However, in

• VAT Penalties

  VAT Penalties (or 'Surcharges' as HMRC call them) If a business misses the VAT deadline by not making payment or filing its return on time, HMRC records a default and the business enters a 12 month

• How to assess your R&D Projects

  The project creates a new or appreciably improved system process, service, product or device. (i.e. improvements in efficiency or technical sophistication of an existing system) Replicate an existing

• Crypto currencies - Detailed Guide

  There has been an enormous increase in interest in cryptocurrencies, with significant opportunities for investors. However, like any form of gain, the tax consequences of trading must be considered.

• Recharging home working costs to your company

  If you spend a significant amount of time working from home you are able to recharge some of the costs you incur by working from home to your company. This will be considered as rental income to you

• Step-by-Step Guide on Completing the Advance Assurance Form

  Introduction You can now apply for SEIS and EIS advance assurance online via HMRC's portal. If you have a good understanding of the SEIS and EIS schemes and their requirements, we encourage you to

• What is the difference between SEIS and EIS?

  SEIS is aimed at start-up companies that have traded for two years or less. EIS is aimed at companies that have traded for seven years or less (although there is an extension to ten years for

• Will the investor qualify for the scheme?

  Investors who are connected to the company are not eligible for Income Tax relief on SEIS or EIS investments. The connection can be defined in two ways: 1. Connection by Financial Interest An

• What qualifies as R&D?

  To qualify you need to carry out research and development work in the field of science or technology. The relief is not just for ‘white coat’ scientific research but also for ‘brown coat’ development

• What can I spend the investment on?

  A company must comply with these conditions regarding using the money raised: The money raised must be used in a qualifying trade or preparing to carry out a qualifying trade, including research &

• Purchases made before VAT registration

  There’s a time limit for backdating claims on purchases for a business newly registered for VAT: 4 years for goods you still have, or that were used to make other goods you still have. 6 months for

• Does my company qualify for the scheme?

  Generally speaking, most companies will qualify for SEIS or EIS. Companies that undertake the following business activities do not qualify: Dealing in land, commodities and financial instruments

• What is an EMI share option scheme?

  An EMI share option scheme grants employees share options that may eventually be worth much more than is permitted within a conventional company share option plan. Granting options via an EMI scheme

• Reasons to choose an EMI scheme

  An EMI share option scheme is a good choice for your business if any of the following apply: You want to incentivise talented staff who you may not be able to pay as large a salary as they might earn

• R&D Intensive SMEs

  From April 2023, the payable tax credit rate for SMEs is reducing from 14.5% to 10%. When combined with the enhancement rate decreasing from 130% to 86%, this is a huge reduction in the cash tax

• Working from Home - Flat rate allowance

  An employer may pay an employee up to £6 per week (£26 per month), free of tax and NICs when there are arrangements between the employer and employee under which the employee regularly performs some

• What happens when an employee exercises their options?

  When an employee chooses to exercise their options, they must inform the company in writing and pay the exercise price as stated on their option agreement. Shares are then issued at Companies House

• Eligibility criteria for EMI

  What types of companies can run an EMI scheme? There are strict qualification criteria for EMI schemes, which must apply on the date the options are granted to an employee. The scheme must have been

• How are unapproved options taxed?

  Under an unapproved option scheme, employees, or contractors, can be granted options that allow them to purchase shares in the future at an exercise price set today. Quite often, we see unapproved