Director's Loan Accounts (DLA) refer to the record of transactions between a company and its directors regarding money or assets. In the UK, it is essential for directors to understand how these accounts work and how they are treated for tax purposes. One specific aspect related to director's loan
Input tax when VAT paid on goods and services received before VAT registration
Before a business is registered for Value Added Tax (VAT) in the UK, the VAT paid on goods and services received cannot be considered as input tax. However, once registered, the VAT paid before registration can be treated as input tax if certain conditions are met. For goods The goods were supplied
Closing a limited company
Board Resolution Hold a board meeting and pass a resolution to close the company. Ensure that all directors are present or provide their written consent. Inform HM Revenue and Customs (HMRC) Notify HMRC that the company is closing by submitting the necessary forms. This includes filing the final
Redundancy Pay In The UK
In the United Kingdom, redundancy pay is a legal entitlement for employees who are made redundant, subject to meeting certain criteria. The rules regarding redundancy pay are outlined in the Employment Rights Act 1996. If you are facing redundancy in the UK, it is important to be aware of your legal
Liquidation of a Community Interest Company
When a Community Interest Company (CIC) faces a situation where it lacks sufficient assets to pay its creditors in full, the option of voluntarily placing the CIC into Creditors' Voluntary Liquidation (CVL) may be considered. This process, also known as voluntary winding up or voluntary liquidation,
The Controversial Proposition: 100% Tax on Death
Introduction Death and taxes are often considered the only certainties in life. While we may not have control over the inevitability of death, governments worldwide have long relied on taxes to fund public services and infrastructure. However, imagine a scenario where a 100% tax is imposed on the
How To Issue Sales Invoices Whilst You Are Waiting For Your VAT Number
When you apply for VAT registration, there will be a period of overlap between submitting your application and receiving your VAT number from HMRC. During this time, you are not allowed to charge or display VAT on your invoices. However, you are still required to pay the VAT amount to HMRC for any
Demystifying Statutory Sick Pay (SSP) Calculation in the UK
Introduction When employees in the UK fall ill or are unable to work due to disability, they may be eligible for Statutory Sick Pay (SSP). Understanding how SSP is calculated is crucial for both employers and employees to ensure accurate payments. In this blog post, we will delve into the
HMRC’s Decision to Close VAT Registration Helpline: A Shift Towards Streamlined Services
Introduction In a recent announcement, HM Revenue and Customs (HMRC) has declared the closure of the VAT registration helpline from Monday, 22 May 2024. This subsidiary of the VAT helpline was specifically dedicated to assisting customers with concerns regarding their VAT registration applications.
A Guide to the Spring Budget 2023
Corporation tax From April 2023, the planned increase in the corporation tax rate to 25% for companies with over £250,000 in profits will go ahead. Small companies with profits up to £50,000 will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will