Brealey Foster Chartered Accountants Hinckley. Here we blog money matters we find interesting. Find us at Edwards centre, The Horsefair, Hinckley, Leicestershire T: 01455 612000 e:brealeyfoster@gmail.com
Friday, 28 September 2012
Personal Tax Returns
We offer a highly cost effective service for the filing of personal tax returns. Based on the prior year return we send you a questionnaire and ask you to update us on new bank accounts and changes in circumstances. This information is entered onto our IRIS Computorised system. The system keeps a record of your tax information and allows a query or investigation of your tax affairs to be quickly and easily dealt with.
If you have a business we provide a flexible accounts production service. This varies from the 'brown box job' of a small trader who doesnt pay VAT and gives us bank statements and invoices, PAYE/NI or cashbook maintenance, to accounts prepared from the Sage or other computorised systems for larger traders, partnerships or companies.
If you have a business we provide a flexible accounts production service. This varies from the 'brown box job' of a small trader who doesnt pay VAT and gives us bank statements and invoices, PAYE/NI or cashbook maintenance, to accounts prepared from the Sage or other computorised systems for larger traders, partnerships or companies.
Brealey Foster Factsheets and Miniguides
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Business Motoring | Business Planning | Exiting a business | Inheritance tax | PAYE/NICS | Personal planning | Retirement planning | Self Assessment | Starting a business | Tax and property | Value Added tax | Year end planning
Equity issue using directors loan as consideration
Can I use a directors loan to subscribe for new shares in a private trading company? Yes, and provided the company continues to trade for two years after the share issue any future loss is likely to be set against income. This may be preferred if capital gains are not in prospect.
http://www.hmrc.gov.uk/helpsheets/hs286.pdf
Transfer of a business to a limited company
http://www.hmrc.gov.uk/manuals/cgmanual/cg65760.htm
Ian Brealey
http://www.hmrc.gov.uk/helpsheets/hs286.pdf
Transfer of a business to a limited company
http://www.hmrc.gov.uk/manuals/cgmanual/cg65760.htm
Ian Brealey
Saturday, 15 September 2012
Company Secretarial Formalities
Companies House
http://www.companieshouse.gov.uk/
Registering a new business for tax
http://www.hmrc.gov.uk/businesses/iwtregister-a-new-business.shtml
A combined company register is either a softback, hardback or loose leaf folder containing the following statutory registers and company necessities:
There are numerous laws surrounding the requirement of a company to keep these registers and details up to date and available for inspection by members of the company and the general public.
We recommend that every limited company should purchase a combined company register to ensure their company details are accurate and legally filed.
We offer a number of company registers
Combined Register - Limited by Shares
£30.00 inclusive
Hardback Company Register for a company Limited by Shares (typical profit making company). Presented in a high quality loose leaf binder. Contains all required Registers plus Share Certifcates, Dividend Vouchers, Minutes, and more.
£35.00 inclusive
Hardback Company Register for a company Limited by Guarantee (not for profit). Presented in a high quality loose leaf binder. Contains all required Registers plus Membership Certifcates, Minutes and more.
£35.00 inclusive
Hardback Register for a Limited Liability Partnership. Presented in a high quality loose leaf binder. Contains all required Registers, Minutes and indexed for Certificate and Partnership Agreement
However, a company may elect to use a seal if it prefers. Some companies prefer to do this so as to execute documents in a more formal manner. There may also be circumstances when a seal can be required, especially if conducting business overseas, or entering into contracts with overseas customers. It is possible that foreign lawyers or local regulations may require that a company execute documents under an official seal particularly on legal documents, contracts or lease agreements.
Many companies as a matter of choice still use a seal for executing documents in the UK such as formal contracts and lease agreements. Use of a seal helps to prevent any question of irregularity in the execution of a document as there is usually only one seal available to the signatories and it’s use is closely controlled by the directors or the company secretary.
The seal can be made by embossing paper, using red wafers for an additional look of formality. Alternatively the seal can be made with a simple ink stamp.
If you require a company seal then contact us with details of
Company name (for the outside of the seal)
Company number (inside of the seal).
Options are
Hand held plier seal
£20 inclusive
Desktop Aluminium seal
£45 inclusive
Self inking stamp seal
£40 inclusive
Wafers (red or gold) Pack of 60
£15 inclusive
http://www.companieshouse.gov.uk/
Registering a new business for tax
http://www.hmrc.gov.uk/businesses/iwtregister-a-new-business.shtml
A combined company register is either a softback, hardback or loose leaf folder containing the following statutory registers and company necessities:
- Register of members
- Register of transfers
- Register of directors
- Register of secretaries
- Minutes
- Share certificates
- Register of applications and allotments
- Register of directors’ interests
- Register of debentures
- Register of mortgages and charges
There are numerous laws surrounding the requirement of a company to keep these registers and details up to date and available for inspection by members of the company and the general public.
We recommend that every limited company should purchase a combined company register to ensure their company details are accurate and legally filed.
We offer a number of company registers
Combined Register - Limited by Shares
£30.00 inclusive
Hardback Company Register for a company Limited by Shares (typical profit making company). Presented in a high quality loose leaf binder. Contains all required Registers plus Share Certifcates, Dividend Vouchers, Minutes, and more.
Limited
companies are legally required to maintain a register which contains
specific information. This register is a high quality hard back loose
leaf register which contains the following.
- Register of Share Applications and Allotments
- Register of Share Transfers
- Register of Mortgages
- Register of Debentures
- Register of Members
- Register of Directors and Secretaries
- Register of Directors Interests
- Blank sheets for recording Minutes
- Share Certificates
Combined Register - Limited by Guarantee£35.00 inclusive
Hardback Company Register for a company Limited by Guarantee (not for profit). Presented in a high quality loose leaf binder. Contains all required Registers plus Membership Certifcates, Minutes and more.
Limited
companies are legally required to maintain a register which contains
specific information. This register is a high quality hard back loose
leaf register which contains the following.
- Register of Mortgages
- Register of Debentures
- Register of Directors and Secretaries
- Blank sheets for recording Minutes
- Membership Certificates
- Guidance on maintaining the register
- Alphabetised notes section for recording members
Combined Register - Limited Liability Partnership£35.00 inclusive
Hardback Register for a Limited Liability Partnership. Presented in a high quality loose leaf binder. Contains all required Registers, Minutes and indexed for Certificate and Partnership Agreement
Register
for mainiting important information relating to your LLP. This register
is a high quality hard back loose leaf register which contains the
following.
- Register of Members
- Register of Mortgages
- Register of Debentures
- Blank sheets for recording Minutes
- Space for storing Certificate of Registration
COMPANY SEALS
Under
UK Company Law there is no requirement for documents to be signed under
seal. In fact there is no requirement in law for a company to have or
use a seal at all. Any document formerly requiring the official seal of
the company can be signed “as a deed” by two officers of the company, or
where there is only a director and no company secretary, the director’s
signature must be witnessed by an independent person.However, a company may elect to use a seal if it prefers. Some companies prefer to do this so as to execute documents in a more formal manner. There may also be circumstances when a seal can be required, especially if conducting business overseas, or entering into contracts with overseas customers. It is possible that foreign lawyers or local regulations may require that a company execute documents under an official seal particularly on legal documents, contracts or lease agreements.
Many companies as a matter of choice still use a seal for executing documents in the UK such as formal contracts and lease agreements. Use of a seal helps to prevent any question of irregularity in the execution of a document as there is usually only one seal available to the signatories and it’s use is closely controlled by the directors or the company secretary.
The seal can be made by embossing paper, using red wafers for an additional look of formality. Alternatively the seal can be made with a simple ink stamp.
If you require a company seal then contact us with details of
Company name (for the outside of the seal)
Company number (inside of the seal).
Options are
Hand held plier seal
£20 inclusive
Desktop Aluminium seal
£45 inclusive
Self inking stamp seal
£40 inclusive
Wafers (red or gold) Pack of 60
£15 inclusive
Accounts, audit and approval
1. ACCOUNTS
Accounts are the personal responsibility of each director to ensure that they are prepared, circulated to the members and delivered to Companies House within the time allowed. Every limited company must submit accounts to Companies House even if it has not traded.
Accounts are the personal responsibility of each director to ensure that they are prepared, circulated to the members and delivered to Companies House within the time allowed. Every limited company must submit accounts to Companies House even if it has not traded.
It is important that you should know the timescale for producing accounts.
2. THE FINANCIAL YEAR
This is the period covered by the accounts. For a new company, it starts on the date of incorporation, regardless of when the company actually starts doing business. For a company which has previously delivered accounts, it starts from the day after the period covered by the earlier accounts.
This is the period covered by the accounts. For a new company, it starts on the date of incorporation, regardless of when the company actually starts doing business. For a company which has previously delivered accounts, it starts from the day after the period covered by the earlier accounts.
The financial year ends on the company's accounting reference date or, if the company wishes, on a date up to seven days either side of the accounting reference date.
A particular financial year can be less or more than 12 months, but it cannot be more than 18 months.
3. ACCOUNTING REFERENCE DATE
Every company is given an accounting reference date, but can change it using form 225. This date will be the last day of the month in which the first anniversary of its incorporation occurs. For example, a company incorporated on 14 June would have accounting reference date of 30 June (Different rules apply where the company was incorporated before 1 April 1990. In this case, the accounting reference date will be 31 March unless the company has chosen another date).
Every company is given an accounting reference date, but can change it using form 225. This date will be the last day of the month in which the first anniversary of its incorporation occurs. For example, a company incorporated on 14 June would have accounting reference date of 30 June (Different rules apply where the company was incorporated before 1 April 1990. In this case, the accounting reference date will be 31 March unless the company has chosen another date).
4. CONTENTS OF ACCOUNTS
The accounts and reports prepared or the members of the company must include
The accounts and reports prepared or the members of the company must include
- a director's report
- a profit and loss account (or an income and expenditure account if the company is not trading for profit)
- a balance sheet
A Company which qualifies as medium sized may include less detail in the profit and loss account sent to Companies House. Similarly, a small company's accounts may comprise simply an abbreviated balance sheet. These exemptions do not apply to the accounts prepared for the members.
5. GROUPS
Where a company is part of a group, the parent company must provide consolidated accounts for the group as well as individual accounts for the company.
Where a company is part of a group, the parent company must provide consolidated accounts for the group as well as individual accounts for the company.
6. AUDIT
If a company has a turnover of under £1,000,000 a year and a balance sheet value of less than £1,400,000 it can claim exemption from audit. Otherwise its accounts must be audited and the auditor's report included with the accounts provided for the members and for Companies House.
If a company has a turnover of under £1,000,000 a year and a balance sheet value of less than £1,400,000 it can claim exemption from audit. Otherwise its accounts must be audited and the auditor's report included with the accounts provided for the members and for Companies House.
The directors may appoint the first auditors to hold office until the first general meeting. After this, the auditors are normally appointed at a general meeting at which accounts are considered. The auditor must be a member of a recognised supervisory body and eligible under the rules of that body to act as a company auditor.
Auditors must normally be appointed each year but a private limited company may pass an elective resolution dispensing with this requirement. In this case, the auditors remain in office until they resign, retire or are removed.
7. AUDIT EXEMPTION
Companies with a turnover of no more than £1,000,000 and a balance sheet total of no more than £1.4 million may dispense with an audit altogether. A company which is a member of a group may also claim exemption if the group turnover and balance sheet total do not exceed £1,000,000 and £1.4 million (£1.68 million gross) respectively. Slightly different rules apply to companies which are charities. The basis for claiming exemption will need to be stated on the balance sheet and signed by a director.
Companies with a turnover of no more than £1,000,000 and a balance sheet total of no more than £1.4 million may dispense with an audit altogether. A company which is a member of a group may also claim exemption if the group turnover and balance sheet total do not exceed £1,000,000 and £1.4 million (£1.68 million gross) respectively. Slightly different rules apply to companies which are charities. The basis for claiming exemption will need to be stated on the balance sheet and signed by a director.
Exemption from audit cannot be claimed by
- a public company unless the company is dormant.
- a company which is a subsidiary of an overseas undertaking.
- a bank, insurance company, enrolled insurance broker or authorised person under the Financial Services Act.
- a special register company under the Trade Union and Labour Relations (Consolidation) Act 1992 or an employers association
- companies where an audit is required by members holding at least 10% of issued share capital.
A dormant company may pass a resolution not to appoint auditors, but not if it is a banking or insurance company or an authorised person under the Financial Services Act.
A voluntary standard format for accounts may be used by companies which have been dormant since incorporation.
Approval of accounts and directors' report:
- The accounts must be approved by the board of directors, one of whom must sign the balance sheet.
- The directors' report must also be approved by the board and signed by a director or the secretary.
- In both cases, the name of the person signing should be stated and copy with an original signature should be delivered to Companies House.
8. CIRCULATION OF ACCOUNTS AND REPORTS
The accounts must normally be considered by a general meeting of the company, usually the annual general meeting. A copy of the accounts and reports must be sent to every member or debenture holder, and anyone else entitled to attend, at least 21 days before the meeting takes place.
The accounts must normally be considered by a general meeting of the company, usually the annual general meeting. A copy of the accounts and reports must be sent to every member or debenture holder, and anyone else entitled to attend, at least 21 days before the meeting takes place.
It is the duty of the directors to call the meeting at the appropriate time. In the case of a private company, the meeting to consider the accounts will normally be not later than 10 months after the accounting reference date. If the company's first accounts cover a period of more than 12 months, the time allowed will be restricted to 22 months from the date of incorporation.
For a public company the time allowed is 7 months after the accounting reference date or, in the case of first accounts covering more than 12 months, 19 months from incorporation, subject to there being a minimum period of 3 months following the period covered by the accounts.
A company may be able to claim extra time if it has overseas interests (in which case form 244 should be sent to Companies House) or if the Secretary of State has agreed that there are special reasons for doing so. In either case, the extension must be arranged before the end of the period originally allowed for delivery of the accounts.
While a company may pass an elective resolution to dispense with the laying of accounts and reports before a general meeting, the accounts and reports would still need to be circulated.
9. DELIVERY OF ACCOUNTS TO COMPANIES HOUSE
The time allowed for delivering accounts to Companies House is the same as is allowed for laying them before a general meeting. When accounts are delivered late, there is an automatic civil penalty in the range of £100 to £1000 for a private company and £500 to £5000 for a public company. Also, the directors are personally responsible for the delivery of accounts to Companies House. They are liable to prosecution in the Magistrates' Court (the Sheriff Court in Scotland) if the accounts are delivered late or not at all. A conviction would mean a criminal record and usually a fine of up to £5000. Persistent failure to delivery accounts or other documents on time could mean a daily default fine of up to £500. It could also result in the disqualification of those concerned as company directors.
The time allowed for delivering accounts to Companies House is the same as is allowed for laying them before a general meeting. When accounts are delivered late, there is an automatic civil penalty in the range of £100 to £1000 for a private company and £500 to £5000 for a public company. Also, the directors are personally responsible for the delivery of accounts to Companies House. They are liable to prosecution in the Magistrates' Court (the Sheriff Court in Scotland) if the accounts are delivered late or not at all. A conviction would mean a criminal record and usually a fine of up to £5000. Persistent failure to delivery accounts or other documents on time could mean a daily default fine of up to £500. It could also result in the disqualification of those concerned as company directors.
Friday, 31 August 2012
Thursday, 23 August 2012
Company cars - company cars benefit
The diesel supplement of 3% will go.
GPs - transferring the surgery premises to a SIPP
Under the simplified tax regime for pensions that came into effect on 'A-Day' (6 April 2006), GPs can secure valuable tax relief advantages by placing surgery premises that they own into a self-invested pension plan (SIPP).
Before A-Day, people were prohibited from putting commercial property into a SIPP. Now, because the rules have been relaxed, GPs can benefit from tax relief at the highest rate of tax they pay on the value of surgery property - or share in it - that they transfer into a SIPP.
Any growth in the value of the property while it is in the SIPP is tax-free. The GPs occupying the property (or property share) are entitled to tax relief - again at the highest rate they are liable for - on any rent they pay on the property. The rent counts as a tax-free contribution to the SIPP.
While you can instruct the SIPP to sell the surgery (or your share) at any time, you will not be able to get your hands on the proceeds until you are 55.
Not all GP owner-occupiers will be able to take advantage of SIPPs. For one thing, the situation can be complicated by partnership shares and borrowings secured on the property. Specialist SIPP providers and financial advisers can assist in the more complicated cases.
The transfer to the SIPP is an investment decision and as such should only be made if you fully understand the implications. Expert advice from an IFA is essential.
Bear in mind that because of the rise in their NHS earnings since the new contract to an average (and I stress the word average) of £112,000, it is likely that the value of GPs' accumulated NHS pension funds will show significant rises over the next few years. There is some capping of pensionable income to bear in mind and many complications such as the purchase of additional years to take into account.
So you need to consider whether transferring the surgery premises to a SIPP will result in the total value of all your pensions exceeding the new lifetime allowance, currently £1.5 million pounds for 2011/12. A hefty rate of tax rate of 55% is slapped on any excess.
This sounds a lot but the factor applied to Doctors pensions is 20x pension. Add the lump sum. Add any private provision and for many doctors, consultants and dentists a pension pot of £1.5m on retirement is quite possible.
Some intriguing tax planning is possible with doctors pension contributions. Self employed GPs can elect to have their employer pension contributions paid into a private pension. This has obvious advantages but some disadvantages too. Pension contributions are a regulated area and expert advice from a qualified professional is essential. I stress advice from an IFA should always be sought before any change to existing arrangements is made.
Economia
GPs can claim expenses - guide
As self employed persons GPs can claim personal expenses
which are incurred wholly and exclusively for business which can reduce
their tax liability.
Motor Expenses
A percentage of all expenses relating to running a car can be claimed, these include petrol, insurance, road tax, servicing, repairs and cleaning. If your car has been purchased on hire purchase or you have a loan, then a percentage of the interest can also be claimed. The percentage claimed must reflect the business use element of the car. Traveling from home to the surgery is private use and only journeys to patients homes, hospitals and other work related places can be claimed.
A percentage of all expenses relating to running a car can be claimed, these include petrol, insurance, road tax, servicing, repairs and cleaning. If your car has been purchased on hire purchase or you have a loan, then a percentage of the interest can also be claimed. The percentage claimed must reflect the business use element of the car. Traveling from home to the surgery is private use and only journeys to patients homes, hospitals and other work related places can be claimed.
Capital Allowances on cost of Motor Car
A claim can be made for the wear and tear of the vehicle, this is known as capital allowances. This is calculated based on 20% reducing value of the car or if over £12,000 then the capital allowances are restricted to £3,000p.a until the value of the car falls below £12,000.
A claim can be made for the wear and tear of the vehicle, this is known as capital allowances. This is calculated based on 20% reducing value of the car or if over £12,000 then the capital allowances are restricted to £3,000p.a until the value of the car falls below £12,000.
Professional use of home
A claim can be made as the majority of GPs will do some work at home. There are various ways to claim, some accountants use a fixed amount per week, others calculate it specifically using a percentage of the running costs of your home. Many GP’s think that if they do claim, there is a capital gains implication when they sell the house. This will not be the case as long as the room is not used exclusively for work
A claim can be made as the majority of GPs will do some work at home. There are various ways to claim, some accountants use a fixed amount per week, others calculate it specifically using a percentage of the running costs of your home. Many GP’s think that if they do claim, there is a capital gains implication when they sell the house. This will not be the case as long as the room is not used exclusively for work
Telephone and Computer Expenses
A claim can be made for the use of home telephone, mobile, use of a computer at home and internet costs if these are used for business purposes. Only the business use element of the costs can be claimed.
A claim can be made for the use of home telephone, mobile, use of a computer at home and internet costs if these are used for business purposes. Only the business use element of the costs can be claimed.
Courses and conferences (including travel and accommodation)
These can all be claimed in full, as long as, you do not tack a holiday or sightseeing onto the end of the trip.
These can all be claimed in full, as long as, you do not tack a holiday or sightseeing onto the end of the trip.
Spouse’s salary
This can still be claimed but only in certain circumstances. Firstly, your spouse must be helping you with your work and you must pay them the salary, preferably, monthly. It is recommended that you have a job description, indicating the type of work and number of hours worked a week. The pay should be realistic for the work done. It is always an area that Inspectors like to look at, so set it up correctly.
This can still be claimed but only in certain circumstances. Firstly, your spouse must be helping you with your work and you must pay them the salary, preferably, monthly. It is recommended that you have a job description, indicating the type of work and number of hours worked a week. The pay should be realistic for the work done. It is always an area that Inspectors like to look at, so set it up correctly.
Other Expenses
A claim can also be made for medical subscriptions, drugs and instruments, medical books, journals, postage and stationery. You can not claim for clothes that you wear to work, instead you can claim the cost of dry cleaning.
A claim can also be made for medical subscriptions, drugs and instruments, medical books, journals, postage and stationery. You can not claim for clothes that you wear to work, instead you can claim the cost of dry cleaning.
Recording Keeping
You must keep all invoices relating to any claim for tax purposes for the minimum of seven years. However, if receipts have been lost reasonable estimates can be made.
You must keep all invoices relating to any claim for tax purposes for the minimum of seven years. However, if receipts have been lost reasonable estimates can be made.
One of the simplest ways of keeping
some of your records, particularly motor expenses, is to have a separate
credit card. The Inland Revenue will accept the statements as evidence
and this will at least mean you have a record of expenses if you lose
the receipts. The credit card should be used for as many business
related items as possible.
Self Employed- claim for use of the home
If you are doing this on a small scale and don’t have all the expense receipts to arrive at an exact figure, it is usually acceptable to claim a modest flat weekly amount provided this is reasonable. You could base it on a sample costs for one month or quarter perhaps. If the home is used for only a few hours a week (e.g. by a builder who does his paperwork at the weekends) then a reasonable claim might be perhaps something between £2 and £5 – per week (i.e. between £96 – £240 per annum, for working 48 weeks a year).
If the claim is going to be higher than this then it is important to keep original bills or evidence of amounts paid and the basis on which the proportion has been calculated.
Note: If you use a room in a home you own, ‘exclusively’ for work, this could reduce the Capital Gains Tax private residence exemption when the property is sold. This is because any part of the property exclusively used for business will not qualify for Capital Gains Tax private residence relief. This problem may be avoided by ensuring there is some domestic use of the study (e.g. keeping a second TV in the study, and using it from time to time for personal enjoyment).
Economia
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