Increase in Dividend taxation rate
With effect from April 2016 there will be an additional 7.5% tax on dividends over £5,000 in each tax year for a basic rate tax payer and an additional 10% if you are a 40% tax payer.
What does this mean for Small Businesses?
Unfortunately, this represents a major increase in taxation of small business owners if you have chosen to trade as a limited company. On the whole it will not be worth dis-incorporating but you will be paying more tax.
Please speak to us about limiting the effect of this change.
Surprisingly this has gone relatively unnoticed whereas there was a huge media furore with a minor change to the rules on hot pasties.
For more information on the budget changes and how they affect you individually please call us on 01487 825656
A Limited Company has become insolvent, they owe us money AND they are serial offenders what can we do?
It is often assumed that you can do nothing when a limited company becomes insolvent and unfortunately all insolvency practitioners are not equal. Often there is a promise to look after you and settle your invoice behind the scenes, which is again often not fulfilled. This is to throw you off the scent of your money.
If the directors have traded whilst insolvent they may be personally liable for the company’s debts under provisions of wrongful and or fraudulent trading (Sections 213 and 214 of the Insolvency Act 1986).
If the directors have deliberately not paid you, as in the case of a long firm fraud, then there may also be criminal matters to consider under Section 993 of the Companies Act 2006 and Section 213 of the Insolvency Act 1986.
What can creditors do?
They can appoint their own insolvency practitioner.
They can establish a liquidation committee to supervise the liquidator.
Contact the other creditors; a schedule of these will be available from Companies House. Then, turn up at or call a meeting of creditors with your chosen Insolvency practitioner. If you require a reputable insolvency practitioner then please ask. We work alongside some Insolvency practitioners that we are able to recommend.
Building a business plan with us– part 4
In our monthly newsletters, we send you advice on building a business plan and the importance of a strong business plan for the future growth of your business.
Previously we looked at the Environmental analysis section of a business plan. What Environmental analysis is, and the benefits it brings for your business. In this section we look at Position Audit.
To read our previous sections, clicking on the following links; Business Plan part 1, Business Plan Part 2 and Business Plan part 3. Please note that Business Plan part 1 and 2 are downloadable pdf files.
This part of the planning process identifies the current state of the entity and will include an analysis of:
a) Tangible and intangible assets and finance
b) Products brands and markets
c) Operating systems
d) Internal organisation
e) Current results
f) Returns to the partners
From this analysis it will be possible to identify available resources and limiting factors for your business. If you require more help with your business plan, do get in touch.
We are now looking for someone special to join our busy team and to grow with our business.
About the vacancy:
We are looking to recruit a part-qualified Accountant at our office in Broughton, Cambridgeshire. The successful candidate will be at least AAT Qualified or part ACCA qualified, preferably with a minimum 3 years’ practice experience.
The main duties of the role will be to complete sets of accounts, working from source documents/records to final accounts for review by the appropriate manager or partner, tax returns, VAT returns, Quarterly and monthly management accounts and various ad hoc work as part of a friendly and experienced team.
The successful candidate will have a willingness to learn and develop their career, be honest, hardworking and have excellent people skills.
The successful candidate will be able to demonstrate the following:
- Excellent written and verbal communication skills
- Excellent attention to detail
- Proficient in use of MS Office (specifically Excel, Outlook & Word)
- Proficient in use of Sage Line 50 & IRIS (or equivalent accounting packages)
- Strong organisational skills and attention to detail.
- Ability to work to tight deadlines.
- Confident, friendly demeanor when working with clients
- AAT or ACCA exam passes
- Full clean driving licence
We welcome all applicants who are eligible to work in the UK regardless of gender, sexual orientation, marital/civil partnership status, race, religion and belief, disability or age.
Please send your CV and covering letter to Keith Alden at KAlden@aldenandco.co.uk
Negligible value claim for worthless assets
If you own an asset that has become worthless then you could make a negligible value claim. This loss can be offset against your capital gains or income resulting in a tax refund. Usually applied to shares but can be used for other assets too.
Please note that not all assets qualify, should you have any queries, please give us a call or drop us a line.
HMRC Special Offers:
Settlement opportunity tax on contractor loan schemes!!
If you have used a contractor loan scheme tax avoidance arrangement; where non UK employers have paid you untaxed income or given you a loan instead of part of your salary then you need to consider using this settlement opportunity.
This settlement will give you the opportunity to bring your affairs up to date for significantly lower tax and penalties. This is available for the tax years up to 5th April 2011 and is open until the 9th January 2015.
If you require any further information, please do not hesitate to get in touch.
Consumer Contracts (information, cancellation and additional charges) regulations 2013
This new consumer protection regulation came into force on the 13th June 2014 and supersedes the consumer protection (distance selling) regulations 2000 as well as the cancellation of contracts made in a consumers home or place of work etc. regulations 2008.
If this legislation applies to you, ensure that you amend your paperwork and procedures. If you require any help or guidance please give us a call.
Welcome to part 3 of building a business plan. If you would like to see part 1 and 2, please download our newsletters from May and July!
This part of your business plan will consist of the environment that your business operates in.
1) Environmental analysis
This is an examination of the various environments that the organisation operates within and will provide opportunities and restrictions on the entity’s operations.
These environments can be broken down into:
a) The economic environment;
For example: what is the current and future state of the national and local economy? i.e. boom, recession, slump or recovery and how is this affecting the business sectors in which the business operates?
b) The political and legal environment;
What laws affect the business? For example: companies acts, taxes acts, employment law, food hygiene, consumer protection, etc. An example of the political environment might be the way the sector or products are viewed following news coverage.
c) Social trends; examples of social trends may be the increased use of mobile and social media, or less formal dressing.
d) Business ethics; what standards of behaviour are expected or not expected but needed.
e) Technological environment; the need to keep updating how the work is done will change the way in which the business will operate and the products and services it can offer along with the speed of delivery and costs associated.
f) The Competition; other firms, products and services will be competing for the same business and this will affect the price and work carried out to ensure you can maintain a competitive advantage. The business may have already responded to this environment by specialising in areas where it can be more effective.
g) The physical environment; a good example is how well is the business and its prospective customers served by roads or Internet connection?
You will notice that all these headings are outside the control of the organisation but have a direct impact on its operations and the way it does business. You can use this analysis to identify threats and opportunities later in your plan.
In this newsletter we discuss the HMRC IR35 – where the HMRC have issued new guidance, the second part of our How to build a business plan and competition time for our readers. Please download the free copy of the newsletter and feel free to contact us with any questions. Alden & Co newsletter July 2014