| |
1. Should I lease or hire purchase
a new business asset?
There is no hard and fast rule as how to finance such a purchase
and it often comes down to individual preferences. You need
to compare costs with taxable benefits and it would be prudent
to contact us
for further help and assistance before proceeding.
2. Should my business become a limited
company?
Each case needs to be looked at individually and judged on
its own merits. It is therefore vital to seek our professional
advice before proceeding.
3. Do I have to be registered for
VAT purposes?
This depends on turnover and other business circumstances,
but as a general rule of thumb, if your turnover over a 12
month cumulative period exceeded £61,000 from 1st April
2006, then you should be registered.
4. How much tax do I have to pay?
This very much depends upon the profits you have made or the
income you have earned. In order to understand what tax liability
you will have, well in advance of the payment date, it is
important to complete your accounts and tax returns promptly
after the year end or before 5th April. If you need any help
in completing tax returns or accounts, please contact
us.
5. What pension contributions can
I make?
Most people are allowed to make personal pension contributions
of £3,600 a year regardless of earnings. Those with
higher ‘Net Relevant Earnings’ (subject to a maximum
earnings cap) are allowed to contribute more. If considering
starting a pension, or increasing your contributions, it may
be worthwhile contacting
us to find out what options you have.
6. I am thinking of selling my business.
Can I get business taper relief without actually retiring?
Provided you have owned the business for at least two years
when you sell the business then you will usually qualify for
relief, however, there are other factors which need to be
considered and you should contact
us to discuss matters further before you decide to
sell.
7. Can I avoid paying tax by emigration?
This is not normally the case, because your taxable income
up to the date of departure will be subject to UK income tax.
However, you do get a full year’s personal allowance
to set against this income and in some cases can avoid capital
gains tax.
8. Will my offshore savings be tax-free?
Not if you are still resident in the United Kingdom. You must
declare this interest on your tax return.
9. When is my tax payable?
Tax is payable no later than 31st January following the end
of the tax year, for those individuals who are taxed under
self-assessment plus a payment on account on the 31 January
and 31 July before and after the tax year ends. Tax which
is paid late will incur an interest charge and if not paid
by 28th February will be liable to a further 5% surcharge.
Corporation tax is payable nine months and one day after the
end of the accounting period.
10. How can I minimise my tax liability?
By contacting
us prior to making any purchases, we could identify
if there are any tax implications for your business and possibly
suggest alternative ways which could minimise your tax liability.
|
|
