If this E-Mail does not display or print correctly click here

Home  |  Why Us?  |  Services  |  Resources  |  News  |  Alliances  |  Client Area  |  Games  |  Contact Us

Welcome… To February’s Tax Tips & MYOB News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our Question and Answer Section. Please contact us for advice in your own specific circumstances. We’re here to help!   February 2013 · Associated Companies · Letting Relief Explained · SEIS – The Opportunity · Green Car Scam · February Question and Answer Section · February Key Tax Dates Associated Companies top Companies controlled by the same people plus their relatives are counted as ‘associated’ for corporation tax purposes. The upper profits limit for the small profits rate of corporation tax is divided by the number of associated companies. A company with no associates currently pays 20% tax on profits up to £300,000, but a company with one associate pays tax at 20% on profits up to £150,000, and 25% marginal tax on any further profits above that. This ’Associated Companies’ tax rule is supposed to discourage large companies from splitting into smaller ones to take advantage of the lower tax rate; but the rule also catches many smaller companies. Where spouses or civil partners own separate companies, those companies are automatically associated companies, even if there is no commercial relationship between them. However the companies controlled by relatives are not associated companies unless there is substantial commercial interdependence between those companies. Avoiding this association could significantly lower a small company tax bill. Substantial commercial interdependence includes situations where one company is financially dependent on the other, where they have common customers or they share the same management, employees, premises or equipment. The commercial links between the companies must be significant before the companies will be treated as associated. Please discuss with us any commercial relationships between your company and companies controlled by your relatives.   Letting Relief Explained top   SEIS – The Opportunity top If you have let a property which was once your main home, or was treated as your main home as you lived in job related accommodation, letting relief can help reduce the tax you pay on the eventual sale. This tax relief cannot apply to a buy-to-let property that has never been occupied by the owner. The property must be let as residential accommodation, not as office space, or operated as a trade such as bed and breakfast. If only part of the property is let, that let part must not form a self-contained annexe such as a granny flat. Read More The Seed Enterprise Investment Scheme (SEIS) will have a limited life – only five years to 5 April 2017. It allows investors to receive 50% income tax relief on the amount invested and up to 28% capital gains tax relief for a limited period. Also if you make a loss on the SEIS shares you can get further income tax relief for that loss. This sounds very attractive, but you need to be aware of the various traps and limitations of the SEIS before you commit your money. In particular SEIS can only be used to invest in small companies (asset value of no more than £200,000 and up to 25 employees), which the SEIS investor can’t control. In fact the SEIS investor together with his associates must not own more than 30% of the company.Read More   Green Car Scam top   February Question and Answer Section top Please don’t be taken in by a scheme which claims to reduce the taxable benefit of your company cars. The taxman has specifically warned taxpayers about this scheme on the spotlights page of his website. The scheme promoters persuade employers to buy carbon credits to offset against the carbon dioxide (CO2) emissions of company cars. This is fine, but buying carbon credits can’t reduce the CO2 emissions rating of your company cars as recorded on the registration documents. A vehicle’s CO2 emissions are fixed at the time of its manufacture, and can’t be changed for tax purposes. You must use the CO2 figure recorded on the vehicle’s registration document for calculating the taxable benefit of the car, and the taxable fuel benefit if fuel is provided.Read More Q. My company designs websites. If my customer is a business in the Republic of Ireland can I apply zero rate VAT to the sales invoice? Do I need their VAT number before I can do this? Is the situation different if my customer is a private individual?Answer Q. I plan to sign over my home to my son to avoid inheritance tax. Is there anything else I should be aware of before I do this? Answer Q. I run a landscape design business through a Limited Company employing a dozen staff. The business is registered as a subcontractor under the construction industry scheme (CIS), and receives payments from the main contractors after deduction of tax. I’m worried that under RTI we won’t be able to off-set the CIS deductions against the PAYE deducted from our payroll, so we will be out of pocket. Is this true?Answer   February Key Tax Dates top 19/22 – PAYE/NIC and CIS deductions due for month to 5/2/2013 28 – Talk to us about year end and pre-budget planning   Need Help? top   New Clients Welcome top Please contact us if we can help you with these or any other tax or accounts matters. In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services. See details of our Business Companion Service.   About Us top Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Clearbooks. We offer a range of accountancy services despite being specialists. ‘All clients using these software packages can benefit from our support. Visit our website http://www.simpleaccounting.co.uk for a look at the resource on offer.’   If the images do not show. If the images contained within this email do not show correctly please add this email to your safe senders list.

Unsubscribe  To unsubscribe from this email please click here Legal Disclaimer

Copyright © Simple Accounting All rights reserved.
95 Bridge Lanes, Hebden Bridge, Yorkshire, HX7 6AT
Simple Accounting is a trading name of Simple Accounting Limited
Company Reg No. 5164026 Registered in England and Wales
VAT No. 911341075