Sherwin Currid Accountancy Limited’s Post

Do your clients have surplus cash? It’s not just a nice problem to have, it’s a tax planning opportunity. We’ve helped several clients who have been referred to us by their accountant so that we can get a holding company in place to act as a safe haven for the cash. Where we can really add value is by factoring in some pre-sale tax planning into the solution. In one case our client will save around £2m in tax when she sells her company next year. The same concept works just as well for any other assets not used in the trade, such as investment property. It is all about leaving the client with some direct minority interest in the trading company, and doing it in a way that gives the right commercial outcome for the client, meets the conditions for BADR* and also meets the conditions for SSE* at the same time. 🟣 We always get HMRC clearance on creating the structure. 🟣 You need to do this as part of the commercially-driven reconstruction, so it is unlikely to get HMRC clearance if you tried to do it after you already have a holding company. This isn’t the right approach for everyone of course, and there are several factors to consider. If you think that this might be for any of your clients, then reach out for a consultation with us. *All our work is referred to us by accountants, so they know the jargon. If you are a business owner, then we’d be happy to have a call with you and your accountant. We pride ourselves on making our advice to clients clear and concise.

How long should you keep your business books and records? 📚 There’s no single rule - retention periods vary by record type, from VAT and PAYE to company books and government grants. Each has its own specific requirements. In our latest factsheet, we break down the regulations and offer guidance to ensure you stay compliant with HMRC and other legal obligations. Find out more below ⬇️ #BusinessAdvice #TaxCompliance #RecordKeeping

How often does the thought of paying a large sum of tax make you feel deflated? 😔 If this is you, listen up! 📣 Sometimes reducing your tax bill can be as simple as having a professional identify the right tax-saving opportunities you can make use of or are entitled to. Our team of experts are adept in allowances, exemptions and deductions through tax, which can potentially save you a significant amount. While it’s nicer to not have to pay as much tax, it comes with the added benefit of easier financial management on your part. With more money available in your business, you won’t have to be making constant cutbacks. For more information, get in contact with our team today 👉 https://lnkd.in/eXzSXY2U #Accounting #SME #Accountants #TaxSaving #AJC

Do you know what Deferred Income is? A business generates Deferred Income when it receives payment in advance for something it has not yet delivered. Find a full write-up on our website: https://lnkd.in/epta3ydN Matthew Marshall FCCA Hannah Wait FCCA Rhiannon Cameron FCCA Sarah Summers Connor Harper Callum Marshall #accountancy #accounting #income

All about being a Limited Company A limited company is a form of business that separates the people that own and run a business from the business itself, making it its own entity. With a limited company, shares are held by the individuals and profits are owned by the company itself after the company pays corporation tax. These profits are then shared out with the shareholders. Shares in the company can be bought and sold. The term limited comes from the idea that the company is “limited” by its shares. At formation, a company might issue 100 shares at £1 each and these shares are paid for in full by four shareholders at 25 shares each. However, if these 25 shares each aren’t paid for in full and the company goes bust, the company directors are only responsible for paying the value of its remaining unpaid shares. Usually, directors own shares in a limited company but this isn’t necessary. Directors are responsible for running a limited company and this can be anyone. Providing the law has not been broken, company directors aren’t made responsible for the business debts if the company makes a loss. The limited company must register itself at Companies House and give HMRC a date for when the business officially starts running. If the company expects to take more than £85,000 per year as (£90,000 from April 1, 2024) it must also register for VAT. Every year the company must also provide statutory accounts to HMRC that comply with either UK Generally Accepted Accounting Practice or International Financial Reporting Standards. An annual return must be sent to Companies House and HMRC must receive a Company Tax Return. Directors must fill in a self-assessment tax return and, if a salary is paid, pay NI and tax through PAYE. #limitedcompany #ladydaccountsltd #haissatadiallo

As Accountants for many small companies, we have seen many entrepreneurs set up multiple Ltd companies to diversify their ventures. While this strategy can offer benefits, it may also now lead to higher Corporation Tax. When you operate multiple Ltd companies, each one is treated as a separate legal entity for tax purposes. This means each company must file its own Corporation Tax return, and profits are taxed independently. While this structure can help isolate financial risks, it also means you could end up paying more in Corporation Tax overall. Why? The main reason is the loss of the small profits rate relief, which applies to profits under £50,000 (equivalent to a 19% tax rate). If your profits are spread across multiple companies, each company might fall below the threshold and miss out on potential tax savings. As an example, if you have 5 companies then each will begin to pay the larger rate (currently 25%) when profits get to £10,000. Additionally, managing multiple companies increases administrative costs and complexity, leading to higher accounting fees and potential inefficiencies. Furthermore, inter-company transactions can complicate tax reporting, increasing the risk of errors and penalties. It’s crucial to weigh these factors against the perceived benefits of having multiple companies. Before making any decisions, consult with an accountant like HJP Chartered who can provide tailored advice based on your specific situation. Proper planning can help you optimise your tax position and avoid unintended consequences. Feel free to reach out if you have any questions or need guidance on managing your business structure effectively. #SMEAccounting #LtdCompanies #CorporationTax #TaxPlanning #FinancialStrategy #TaxEfficiency #BusinessDiversification #SmallBusinessOwners #TaxAdvice #FinancialPlanning #AccountingFirm #TaxSavings #FinancialRisk #AccountingServices #TaxCompliance #BusinessStructure #Entrepreneurship #FinancialManagement #TaxConsulting #HJPChartered

🌟 A great start to the week, seeing our R&D and Tax Advisory Senior Manager Rory Fothergill’s comments in AAT Comment sharing his thoughts on what R&D changes accountants would like to see to help further incentivise business investment and stimulate more innovation.   Read Rory’s comments here:   https://lnkd.in/gKkpsv8h   #RandD #TaxRelief #Innovation #Investment #TeamJS

Here are six courses designed to help you stay on track: Starting a small business (https://lnkd.in/dy5zu4u7) - This course will help you understand the difference between a hobby and a business, the most common business structures and the registrations you may need to run a small business. Using your business money and assets (https://lnkd.in/gPXTw4JX) - In this course, you will understand the several options on how to pay yourself if your business is a company or trust. Record keeping (https://lnkd.in/d-YB6XDB) - This course explains the importance of good record keeping. As Good record keeping helps you know the state of your business at any time which helps you manage your business successfully. Claiming small business tax deductions (https://lnkd.in/gTrHCSgi) - This course covers expenses you can deduct immediately, expenses you can deduct over time and expenses you can never deduct. Growing your small business (https://lnkd.in/dBM288t7) - This course will help you plan to grow your business successfully and profitably. It considers business growth options, as well as considerations before making business decisions. Goods and services tax (GST) (https://lnkd.in/d3VZRgF6) -This course outlines who must register for GST, how to calculate GST on sales and purchases, as well as other requirements such as invoicing, record-keeping, and reporting GST to the ATO. We hope you found it helpful. If you need more personalized tax advice and support with record-keeping, feel free to contact R&K Taxation Experts! #SmallBusiness #BusinessCourses #Entrepreneurship #TaxTips #RecordKeeping #BusinessGrowth #GST #TaxDeductions #StartYourBusiness #FinancialLiteracy #BusinessSuccess #TaxAdvice #SmallBizSupport #BusinessEducation #BusinessManagement #RKTAX

Here are six courses designed to help you stay on track: Starting a small business (https://lnkd.in/dy5zu4u7) - This course will help you understand the difference between a hobby and a business, the most common business structures and the registrations you may need to run a small business. Using your business money and assets (https://lnkd.in/gPXTw4JX) - In this course, you will understand the several options on how to pay yourself if your business is a company or trust. Record keeping (https://lnkd.in/d-YB6XDB) - This course explains the importance of good record keeping. As Good record keeping helps you know the state of your business at any time which helps you manage your business successfully. Claiming small business tax deductions (https://lnkd.in/gTrHCSgi) - This course covers expenses you can deduct immediately, expenses you can deduct over time and expenses you can never deduct. Growing your small business (https://lnkd.in/dBM288t7) - This course will help you plan to grow your business successfully and profitably. It considers business growth options, as well as considerations before making business decisions. Goods and services tax (GST) (https://lnkd.in/d3VZRgF6) -This course outlines who must register for GST, how to calculate GST on sales and purchases, as well as other requirements such as invoicing, record-keeping, and reporting GST to the ATO. We hope you found it helpful. If you need more personalized tax advice and support with record-keeping, feel free to contact R&K Taxation Experts! #SmallBusiness #BusinessCourses #Entrepreneurship #TaxTips #RecordKeeping #BusinessGrowth #GST #TaxDeductions #StartYourBusiness #FinancialLiteracy #BusinessSuccess #TaxAdvice #SmallBizSupport #BusinessEducation #BusinessManagement #RKTAX

Today's Top 3 Facts about the UK Accountancy Market: 1. The UK has over 5 million small businesses, making up 99% of all businesses. 2. Accountancy services help businesses save an average of 20% on tax. 3. Compliance with the Construction Industry Scheme (CIS) is crucial for construction businesses. Follow us on LinkedIn for updates and tips! 📈 #UKAccountancy #SmallBusiness #CIS #charteredcertifiedaccountant #accountant #businessowner