Archive for August, 2014

If you’re a sole trader, or running a business as a partnership, and turn over £81,000 or less per year, your business could take advantage of the new ‘cash basis’ accounting scheme, potentially saving you time and money. Cash basis accounting The scheme, which is open to all unincorporated businesses with income below this threshold […]

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The Annual Investment Allowance (AIA) is a 100 per cent allowance for tools and equipment capped at an annual amount. This means that all expenditure within this capped amount can be written off against the taxable profits for the same period. Expenditure over that amount is subject to the normal writing down allowances of 18 […]

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The new employment allowance could cut your bills by £2,000. But are all businesses eligible and what effect does this measure have on remuneration planning for a one-man company? The employment allowance (EA) became available to employers from 6 April 2014 to set against their secondary (employer) Class 1 NI liability (National Insurance Contributions Act […]

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Your company is acquiring the business of an unincorporated competitor. This business has previously prepared its accounts using the cash basis – how should you bring it into line with standard accruals accounting? Cash basis of accounting What is it? Under cash basis accounting transactions are recorded when the cash related to them is paid […]

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Your accounts for last year show a profit and you’re meeting with your fellow directors to decide whether it should be paid out as dividends. As tax will play a major part in your decision what are the most efficient options? Dividends procedure In most companies the directors can decide when to pay interim, but […]

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