Search results for year end

39 articles found

  • 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 is aimed at new business owners. 1. Companies pay Corporation Tax on their net profits at a rate of 19%. Corporation Tax is due nine months after your company's year end. The sooner we

  • 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

  • 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

  • Emergency Measures

    A summary of the key measures available to small businesses as a result of the Covid-19 pandemic Statutory Sick Pay Statutory Sick Pay (SSP) to be paid from the first day of absence, not the fourth,

  • Recharging home working costs to your company

    Note: from April 2020 this note only applies to you if you rent your property. If you are a homeowner it is no longer efficient for you to claim this deduction, see here for how you should claim your

  • 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

  • Cryptocurrencies

    Trading in crypto-currencies such as Bitcoin and Litecoin is treated by HMRC as the same as dealing in shares and bonds. The gains and losses made on those transactions are taxable as capital gains or

  • 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

  • Annual Staff Parties

    Covid Update: This year the same rules as set out below will apply, however HMRC have confirmed that virtual staff parties will be allowable. This will include food, drink and entertainment consumed

  • 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

  • Future Fund

    The government has unveiled a new £1.25bn package designed to ensure that early stage companies receive enough investment to remain viable during the coronavirus crisis. Launching in May 2020, the

  • 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

  • Job Retention Bonus

    Overview The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31

  • 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 the phone is used mostly for personal use. However

  • Furlough Letter Guidance

    FURLOUGH LETTERS An employee furlough refers to a temporary leave or modification of normal working hours for a specific amount of time. It’s a leave of absence given to an employee with the promise

  • 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

  • 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

  • Flexible Furloughing

    Flexible furloughing From 1 July 2020, you'll have the flexibility to bring previously furloughed employees back to work part-time - with the government continuing to pay 80% of wages for any of

  • 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 &

  • Coronavirus Job Retention Scheme - Scheme Details

    Coronavirus Job Retention Scheme Under the new Coronavirus Job Retention scheme, government grants will cover 80% of the salary of PAYE employees who would otherwise have been laid off during this

  • 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 s

  • Coronavirus Business Interruption Loan Scheme

    Coronavirus Business Interruption Loan Scheme This scheme is now available. Key features: Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on

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

    Step-by-Step Guide The advance assurance form can be sent to HMRC in order to receive pre-approval for your SEIS or EIS investment. To apply for advanced assurance, you will need to complete: Online

  • 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

  • Bounce Back Loan Scheme

    Key Points: businesses will be able to borrow between £2,000 and £50,000 and access the cash within days loans will be interest free for the first 12 months, and businesses can apply online through a

  • 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