Are you a director or shareholder who has loaned money to their company to help keep it afloat? Where a director borrows money in order to lend it to a close company, tax relief may be available 'Close' Companies Family and personal companies are often ‘close’ companies. Broadly, this is one that is controlled by five or fewer shareholders or any number of shareholders all of whom are directors. In a close company, the directors and shareholders may borrow money from the comp

As furlough comes to an end, you may need to consider letting staff go. If this is the case, you will need to budget for the Class 1A liability, as well as the cost of the termination packages. Taxation of termination payments: Recap Where an employee’s employment is terminated, the employee may receive termination payments, such as pay in lieu of notice and ex-gratia lump sums, in additional to normal wages and salary payments. Normal payments from the employment, such as sa

Good monthly processes and some up front preparation are the formula for successful accounts and tax Is your business year end coming up? Get prepared now with this handy checklist. Dates and deadlines Firstly, check you know when your key dates and deadlines are. If you are a company, the accounting year end is the date shown on the Companies House register. Unless it has been changed, this should fall every year at the end of the month in which the company was first regist

If you became self employed in 2020 or 2021, it’s likely that you weren’t eligible for any government grant, probably realised a loss too. If this is the case, you can offset these losses against future income to reduce your tax. Relief for losses in the early years of a trade It is not uncommon to realise a loss in the early years of a trade. However, traders who commenced their self-employment in 2019 or 2020 may also have suffered as a result of the pandemic. Although the

For personal and family companies, a tax efficient strategy for extracting profits is to take a small salary and to extract any further funds needed outside the company in the form of dividends (see https://www.janesaccounting.co.uk/post/tax-optimal-salary-for-2021-22). However, while there are no restrictions on taking a salary if the company is making a loss, the same is not true of dividends. Do you have retained profits? Dividends can only be paid out of retained profits

What is a valid VAT invoice or reciept? Don't get caught out with the wrong paperwork. HMRC will only accept claims for input VAT when accompanied by a valid VAT invoice or reciept. So what does a valid VAT invoice or reciept look like and what does it have to include? What ISN'T a valid VAT invoice? Sorry - none of the following are acceptable for the reclaim of input VAT on your VAT return: E-mail confirmations Delivery notes Order summary Order confirmation Pro-forma invo