There is no doubt that the tax office are more active with tax investigations; there has been a lot of announcements about targeting specific industries. You can not stop the tax office investigating you but you can take steps to protect yourself. The two things I recommend are taking out insurance which will pay for professional representation
Goodwill is an accounting concept which recognises the value of a business over its physical assets. For example, my accounting business could be sold for 1.25 times the annual turnover even though I only have £5,000 worth of assets such as computers. When you transfer your business from a sole-trader or partnership to a company
The cost of something is not just what you pay but what you miss out on, this is called the opportunity cost. Often the opportunity cost is many times the actual cost. In a previous post I mentioned how a sole trader business making £40,000 could save £3,000 tax by trading as a limited company.
National Insurance is charged on profits of a sole-trader or partnership. At the moment, the charge is 0% below £7,225, 9% between £7,225 and £42,475 and 2% over £42,475. But, if you trade your business as a Limited Company you can take your profit as dividends which do not attract a National insurance Charge. If
Tax is payable on profits of a sole trader or partner, regardless if you take the profit out of the business or not. With a Limited Company you can leave the profit inside the company and only pay 20% tax. This can be useful if you have fluctuating profits in your business. If your profits
If you do not have a Will there are rules for deciding who inherits your assets, depending on your personal circumstances. If you’re married or in a civil partnership and there are no children then your husband, wife or civil partner won’t automatically get everything. They will receive: Personal items, such as household articles and
Goals are important to ensure you don’t invest too little or too much, what is the point in over investing in your pension or dying and paying lots of Inheritance Tax? Your personal financial goals can be broken down into short term, medium term and long term. And, you can work the numbers to ensure
Tax is payable on profits of a sole trader or partner, regardless if you take the profit out of the business or not. With a Limited Company you can leave the profit inside the company and only pay 20% tax. This can be useful if you have fluctuating profits in your business. If your profits
National Insurance is charged on profits of a sole-trader or partnership. At the moment, the charge is 0% below £7,225, 9% between £7,225 and £42,475 and 2% over £42,475. But, if you trade your business as a Limited Company you can take your profit as dividends which do not attract a National insurance Charge. If
