Search results for year end

55 articles found

• Year-end 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

• R&D Claims - 6 things you need to know

  1 – Pre-Notification Form HMRC added an administrative step to try and encourage more companies to have R&D Tax Relief in active thought, not a deadline task. You will be required to make a

• 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% - 25%. Corporation Tax is due nine months

• Changes to R&D Tax Relief from April 2024

  The R&D Tax Relief landscape has changed quite a bit over the last few years. We are expecting these to be the last major changes to be announced for a while. At the same time we hope HMRC will

• 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

• Staff Entertainment, gifts and trivial benefits

  Staff entertainment Staff are taxed on food and drink provided outside the normal course of business, with the value of the entertainment reported on the P11D form at year-end. Employees pay income

• Making Tax Digital for Income Tax

  What is Making Tax Digital for Income Tax? MTD for ITSA is part of HMRC’s broader Making Tax Digital (MTD) initiative. It’s designed to modernise the tax system by requiring digital record-keeping

• 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

• PAYE Settlement Agreement (PSA)

  What is a PSA? A PSA allows employers to settle the tax and NationalInsurance contributions (NICs) on certain benefits and expenses provided to their employees. Typically, these are items that cannot

• 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

• 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

• Payrolling Employee Benefits

  Your Guide to Payrolling Benefits in Kind: What Employers Need to Know for 2027 From April 2027, HMRC will require all employers to payroll most employee benefits. If your business provides benefits

• Short-Term Business Visitors (STBVs): What UK Companies Need to Know

  If someone who normally works overseas is coming to the UK for a short work trip, there are some UK tax rules you should be aware of. These people are called Short-Term Business Visitors (STBVs), and

• EIS Income Tax Relief

  This guide explains how to claim Income Tax relief under the Enterprise Investment Scheme (EIS) once you have received an EIS3 compliance certificate. How to claim the relief There are two ways to

• 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

• 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

• What is a knowledge intensive company?

  Knowledge Intensive Companies (KICs) can raise more investment through venture capital schemes like EIS compared to other companies. This guide outlines when and why you should apply as a KIC, what

• 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

• 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

• 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

• 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,

• 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 86% and the payable tax credit rate will decrease from 14.5% to 10% (unless you

• 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 (this is £3k in 2024-25). Gains or losses are calculated based on

• P11D Benefit Reporting

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

• Gifts to Clients

  HMRC permits businesses to provide gifts to clients worth up to £50 per tax year, provided the following conditions are met: The gift must be business-related and cannot include alcohol, food,

• 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

• What is the 'initial investing period' ?

  For companies looking to secure funding through the Enterprise Investment Scheme (EIS), understanding the rules on the time limits for receiving investment is crucial. Here’s a simplified breakdown

• 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

• Annual Staff Parties

  Hosting an annual staff party is a fantastic way to celebrate and foster team spirit. With the right planning, businesses can take advantage of tax exemptions and ensure employees don’t face

• Introduction to VAT OSS

  What is VAT OSS? VAT OSS occurs when there are sales of digital services from UK businesses to EU customers. Under these rules, the UK business must charge the VAT rate in the country the customer is

• Crypto currencies - Detailed Guide

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

• 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 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

• How to exercise share options

  Step 1: Option Holder - Check Exercise Conditions The option holder should review the terms outlined in their option agreement to determine when they are eligible to exercise. This could be based on

• 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

• Understanding SEIS

  The Seed Enterprise Investment Scheme (SEIS) offers a valuable opportunity for early-stage start-ups to attract investors by providing generous tax reliefs, including 50% income tax relief for

• R&D Guidelines - in our words

  The DSIT guidelines are critical when it comes to qualifying projects for R&D tax purposes, but they are not the easiest thing to read. To make your life easier, we have gone through the guidelines

• 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

  Newly registered companies can claim VAT on pre-registration purchases within the following timeframes: 4 years for goods you still have, or that were used to make other goods you still have 6 months

• Does 'financial health' matter?

  For a company to qualify for the Enterprise Investment Scheme (EIS) it must not be in financial difficulty at the time of issuing shares. A company is considered in difficulty if it can't pay debts

• 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