Search results for year end

48 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

• 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

• 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

• 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

• 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,

• 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.

• 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

• 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

• 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%. What this

• 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

• EMI Annual 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 letter

• 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.

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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