Category: Business Advice

When should a business register for VAT?

All traders – whether sole traders, partnerships, or limited companies – are obliged to register to charge and pay VAT once annual sales reach a pre-set annual threshold. This threshold remains at £85,000 for the year commencing 1 April 2019. The annual VAT threshold is determined by total sales and is not the same as […]

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Minimising the Upheaval of an HMRC Enquiry

Where a business receives an enquiry notification from HMRC, it does not always mean that something is wrong. Sometimes HMRC simply need some further information to ensure that a return is correct, for example, if the business recently received a lot of money, it would be reasonable for HMRC to ask where the funds came […]

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Family companies – optimal salary for 2019/20

For personal and family companies it can be beneficial to extract some profits in the form of a salary. Where the individual does not have the 35 qualifying years necessary to qualify for the full single-tier state pension, paying a salary which is equal to or above the lower earnings limit for National Insurance purposes […]

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Is the Summer Party Tax-Free?

A statutory exemption exists, which allows employers to meet the cost of certain social events for staff without triggering a liability to tax or NICs, providing certain conditions are met. The legislation refers to ‘an annual party or similar annual function’. Although HMRC do not seem to interpret this to mean that the same event […]

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Employing Family Members

It is permissible for a business to claim a tax deduction for the cost of a reasonable wage paid to a family member who helps in the business. Their duties could, for example, include answering the phone, going to the bank, bookkeeping and other administrative tasks. The tax legislation specifies that ‘in calculating the profits […]

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Practicalities of forming a partnership

Although a partnership can be a simple and flexible way for two or more people to own and run a business, unlike limited company status, partners do not have any protection if the partnership fails. If one of the partners resigns, dies, or goes bankrupt, the partnership has to be dissolved, even though the business […]

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Capital allowances – write off small pools

Businesses which are not using the cash basis can claim capital allowances for capital items that are used in the business, such as plant and machinery, tools and equipment, and so on. Where the annual investment allowance, which gives an immediate 100% deduction against profits is not claimed, either because the allowance has been used […]

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Are you paying the minimum wage?

The National Living Wage (NLW) and National Minimum Wage (NMW) increased from 1 April 2019. From that date, the NLW, payable to workers aged 25 and over, is set at £8.21 per hour. Workers under the age of 25 and over school leaving age must be paid the NMW appropriate for their age. From 1 […]

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Tax aspects of using a work’s van

If an employee is able to use a work’s van for private use, which generally includes home-to-work travel, there will be a taxable benefit and a subsequent tax charge. From 6 April 2019, the flat-rate van benefit charge has risen from £3,350 to £3,430, representing a small increase in real terms to a basic rate […]

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Voluntary National Insurance Contributions – should you pay?

The payment of National Insurance contributions provides the mechanism by which an individual builds up their entitlement to the state pension and certain contributory benefits. Different classes of contribution provide different benefit entitlements. Employed earners pay Class 1 contributions where their earnings exceed the lower earnings limit – set at £118 per week (£512 per month, […]

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Tax-free taxis

There may be occasions on which an employer provides an employee with a taxi either to or from work. As a general rule, where an employer pays for a taxi for an employee’s journey between home and work, there is a taxable benefit as journeys between home and work are regarded as private, rather than […]

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Fuel and mileage payments for company car drivers

The car benefit tax charge does not cover fuel provided for a company vehicle. Where the company pays for all fuel (business and private), the fuel benefit will be charged, which is based on the cash equivalent of the benefit each tax year (£24,100 for 2019/20 multiplied by a percentage depending on the car’s CO2 […]

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Hyphose joins R&G Group

I’m excited to be providing consultancy services and accountancy support to the leading South Coast fluid power business Hyphose Ltd, whose head office is in Ringwood. Hyphose has been established for nearly 40 years, and the sale of the company this week makes them part of one of the UK’s strongest fluid power groups, R&G […]

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Simplified Expenses

As a sole trader running your business is time consuming enough without the added stress of calculating how much of the fuel you buy is allowable as a business expense every time you fill up your car. Luckily this is one of several areas where HMRC make it easier for small businesses by allowing you […]

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Fixed Fees for Predictable Expenses

Take the uncertainty out of your monthly bookkeeping expenses. At AC Barwick Bookkeeping & Accountancy Services we are happy to agree a fixed monthly fee for ongoing contracts with small businesses in the Bournemouth, Ringwood and East Dorset area.

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