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Closing down a limited company

21 Sep, 2017

There are a number of reasons why a limited company may no longer be required and can be shut down. The limited company structure is no longer suitable as:

  • being incorporated is not the best option
  • the business is no longer trading or
  • the company is insolvent.

It will usually be necessary to have the agreement of all the company’s directors and shareholders to close down a company.

Changing your company’s year end

21 Sep, 2017

There are special rules which limit the ability to change a company’s year end date. A company’s year end date is also known as its ‘accounting reference date’ and is historically set by reference to the date the company was incorporated. Under certain circumstances it is possible to make a change to the year end.

Reimbursing employer for benefits in kind

21 Sep, 2017

It has been confirmed that the promised legislation to allow employees to reimburse their employers for benefits provided, and thereby avoiding a tax charge, will be included in the second Finance Bill 2017.

These changes will align the dates for reimbursing an employer for benefits-in-kind (referred to in the legislation as ‘making good’).

When is a car a van for VAT reclaim purposes?

21 Sep, 2017

In most cases a business is unable to reclaim the VAT charged when they purchase a car. However, there are different rules for other types of commercial vehicles and in most cases VAT can be reclaimed when a business purchases a commercial vehicle.

For example, vans usually have no rear seats, metal side panels to the rear of the front seats, a load area which is unsuitable for carrying passengers and opaque rear windows. However, there are a significant number of new vehicles where these distinctions are more difficult to make - is a vehicle a car or a van?

Tax relief for electric vehicle charging points

21 Sep, 2017

In last year’s Autumn Statement, the Chancellor announced a new capital allowance for electric vehicle charging points. Capital allowances is the term used to describe the allowances which allow businesses to secure tax relief for certain capital expenditure. Most 'capital' items, such as computer equipment, vehicles, machinery etc, last for a lengthy period of time and the tax relief rules do not allow businesses to automatically deduct the full cost of such items in one go.

Pension money purchase allowance reduction 2017-18

21 Sep, 2017

One of the measures announced in the March 2017 Budget was the reduction in the annual Money Purchase Allowance (MPAA) from £10,000 to £4,000. This measure was subsequently dropped from the pre-election Finance Bill, but as expected, has now been included in the second Finance Bill of 2017 published earlier this month. Once the second Finance Bill receives Royal Assent, this measure will have effect from 6 April 2017.

New Data Protection Bill introduced to Parliament

19 Sep, 2017

Following the Statement of Intent published in August 2017, the new Data Protection Bill has now been introduced to Parliament and it had its first reading in the House of Lords on 13 September 2017. The second reading in the House of Lords, which will include a general debate on all aspects of the Bill, is due to take place on 10 October 2017.

Date announced for Autumn Budget 2017

13 Sep, 2017

The Chancellor has announced that the Autumn Budget 2017 will be held on Wednesday, 22 November 2017. The announcement was made on the GOV.UK website and included a video message from the Chancellor, Philip Hammond. In the video, the Chancellor said that the budget will 'set out our thinking on how to keep the economy strong and resilient and fair. An economy that works for everyone'.

Landlord’s Replacement Domestic Items relief

13 Sep, 2017

The Wear and Tear allowance that allowed landlords to reduce the tax they paid on furnished property lets was withdrawn at the end of the 2015-16 tax year. The 10% deduction was available to landlords regardless of whether furnishings in their property were replaced or not.

Paying wages for the first time?

13 Sep, 2017

There are a myriad of rules that new businesses must follow when they start employing staff for the first time. A full examination of the rules is beyond the scope of this article however we wanted to point out some important issues to be aware of when taking on staff. This includes ensuring that you register as an employer with HMRC. This must be done before the first payday and this process must even be completed by directors of a limited company who employ themselves to work in their company.

VAT Annual Accounting scheme

13 Sep, 2017

The VAT annual accounting scheme is open to most businesses with a turnover of up to £1.35m per year.  The main benefits of the scheme include the requirement to file only one VAT return per year. This can significantly reduce the amount of administration time and the associated cost of preparing and submitting quarterly VAT returns.

Making Tax Digital

13 Sep, 2017

The new timetable for the introduction of Making Tax Digital (MTD) has been confirmed with the publication of the second Finance Bill. The MTD regime was originally due to start from April 2018. However, there were significant concerns that the roll-out of the MTD was moving too fast and a new timetable for the introduction of MTD was announced earlier this summer. 

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