Taxation Advice & Administration

Compliance

However you operate your business, whether as a sole trader, in partnership, through a limited company or as a limited liability partnership, it is important that you are appropriately registered with H M Revenue & Customs within the time limits allowed in order that late notification penalties are not incurred.

For sole traders and partnerships, both limited and unincorporated, this will involve the completion of Form CWF1 together with a Form VAT 1 if the business is to be VAT registered.

If the business is to have employees, a PAYE scheme will need to be set up and the appropriate reference numbers obtained. Payroll procedures will need to be complied with. (See Payroll services).

For companies, this will involve the completion of a Form CT41G and Form VAT 1 if the company is to be VAT registered.

A PAYE scheme will need to be set up as soon as the directors or any other employees are to be paid.

A Form 64-8 will need to be completed to enable us to deal with taxation matters on your behalf.

Income tax & National Insurance

Sole traders and both types of partnership will pay income tax and national insurance on their profits.

Two types of national insurance are payable:

  • Class 2 which is a fixed weekly amount payable by monthly direct debit or quarterly bill, and
  • Class 4 which is a profit related percentage.

We will discuss with you at our meeting the dates of payment of tax and national insurance in order that you can budget towards your tax liabilities.

Corporation tax

Companies are, generally, liable for corporation tax on their profits.

We will advise you of the due dates for payment of corporation tax in order that you can budget appropriately.

Capital allowances

Items of plant and machinery, cars, computer equipment, fixtures and fittings and certain other items of a capital nature will qualify for capital allowances and hence tax relief.

The timing of the purchase of assets can be important as can the choice of asset made.

We will discuss your individual requirements at our meeting.

Company cars

If you trade as a limited company, one of the most common questions we get asked is whether to have a company car or not.

The next most common question is how to finance the car.

It can be an area of confusion for many businessmen and women.

We will carry out a planning exercise each time you consider buying a new vehicle to ensure you are aware of the most appropriate method of finance and minimisation of tax liabilities.