Understanding Corporation Tax for Dormant Companies: A Comprehensive Guide

December 1st, 2023 | Categories: Tax

In the world of business, there are times when a company may become dormant, temporarily ceasing its activities and generating no income. During this period, it’s crucial to understand the implications of corporation tax and how to handle the reporting requirements. In this blog post, we will delve into the intricacies of managing corporation tax for dormant companies, providing you with valuable insights and guidance. Read on to discover everything you need to know about corporation tax for dormant companies. What is a Dormant Company? A dormant company is one that is not actively trading and has no other sources […]

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Autumn Statement 2023: What You Need to Know

November 24th, 2023 | Categories: News, Payroll, Tax

The Autumn Statement 2023 has brought significant changes that will have a profound impact on businesses and individuals alike. In this blog post, we will delve into the key updates announced in the Autumn Finance Bill, focusing on the keywords ‘Autumn Statement 2023’ for the KA Farr website. Significant Changes in the Autumn Statement The Autumn Finance Bill has introduced a game-changing update for businesses. The ‘Full Expensing’ deduction, which allows companies to claim a 100% first-year deduction on qualifying new investments, will now be a permanent feature. This move aims to encourage businesses to invest in their growth and […]

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Redundancy Payments Taxation: Understanding the Complexities

November 22nd, 2023 | Categories: Employment, Payroll, Tax

When it comes to making employees redundant, it is not just a difficult decision for employers but also a potentially distressing situation for all parties involved. Mistakes in the redundancy process can lead to legal claims and tribunal cases. That is why seeking professional advice is crucial. Termination of Contract Terminating an employee’s contract involves various aspects, including the final payment. Apart from the regular earnings (salary, accrued holiday pay, accrued bonuses, etc.) up to the last working day, the termination award consists of additional payments made specifically upon the termination of employment. Such payments may include statutory redundancy pay, […]

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Avoid Common Minimum Wage Errors to Protect Your Business: A Comprehensive Guide

November 10th, 2023 | Categories: Payroll

When it comes to paying your employees, complying with the National Living Wage (NLW) or Minimum Wage (NMW) is crucial to avoid penalties and reputational damage. To help employers navigate through the complexities of paying the correct minimum wage, HMRC has identified 18 common errors that you should be aware of. In this blog post, we will delve into each of these errors, providing actionable insights to protect your business and ensure you are paying your employees correctly. 1. Making deductions that reduce the worker’s pay below the statutory minimum One common error is making unauthorized deductions from an employee’s […]

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Late VAT Registration: Implications and Penalties Explained

October 26th, 2023 | Categories: Tax

Late VAT registration can have significant consequences for businesses in the UK. Not only can it lead to penalties, but it can also impact a company’s cash flow and reputation. In this blog post, we will explore the implications of late VAT registration and the steps businesses can take to avoid the pitfalls. When Is VAT Registration Necessary? VAT registration is mandatory for all UK-established persons who are involved in business activities and make or intend to make taxable supplies. There are two tests that determine when registration is required: the historical test and the ‘future’ test. Under the historical […]

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Alphabet Shares: A Tax-Efficient Strategy for Businesses

October 12th, 2023 | Categories: Tax, Tips

In the world of finance, finding tax-efficient methods to manage profits is a top priority for companies of all sizes. One such strategy gaining significant traction is the utilisation of “Alphabet shares”. In this blog post, we will explore what Alphabet shares are, how they can be utilised in various business scenarios, and the potential tax advantages they offer. What are Alphabet Shares? Alphabet shares refer to different classes of shares denominated by a letter, such as ‘A’ ordinary, ‘B’ ordinary, ‘C’ ordinary shares, and so on. Unlike traditional share structures where all shares issued are designated as ordinary shares, […]

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Understanding the Mobile Phone Tax Exemption: A Comprehensive Guide

October 4th, 2023 | Categories: Tax

As businesses navigate the intricate world of tax legislation, it’s crucial to be aware of the various exemptions that can help optimise financial operations. One such exemption that holds significant value is the mobile phone tax exemption. In this blog post, we will delve into the details of this exemption, providing you with a comprehensive understanding of its benefits, limitations, and strategies to optimise tax efficiency. Read on to discover how your business can take advantage of the mobile phone tax exemption. Exploring the Mobile Phone Tax Exemption Tax-Free Provision for Employee Use Under this exemption, businesses have the opportunity […]

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Self-Serve Time to Pay VAT: An Easy and Convenient Solution for Businesses

September 29th, 2023 | Categories: Tax

As a VAT-registered business, managing your tax obligations efficiently is crucial. It’s not always easy to pay your VAT bill in full and on time, especially if you are facing financial constraints. However, there’s good news for taxpayers like you! The HMRC has introduced a self-serve Time to Pay arrangement specifically for VAT-registered businesses. In this blog post, we will explore the benefits and eligibility criteria for this convenient online service. What is Self-Serve Time to Pay for VAT? The self-serve Time to Pay arrangement allows VAT-registered businesses to set up a payment plan online, ensuring that you can pay […]

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The Benefits of Filing Your Tax Return Early: A Complete Guide

September 22nd, 2023 | Categories: Tax

Filing tax returns can feel overwhelming, especially when faced with the looming deadline. However, did you know that filing your tax return early offers numerous advantages? In this blog post, we will explore the benefits of filing your tax return early and why it is crucial for effective financial management. Discover how being proactive with your tax returns can lead to peace of mind, better budgeting, and easier access to assistance. Benefits of Filing Your Tax Return Early 1. Claiming a Tax Refund Sooner: By filing your tax return early, you can expedite the process of claiming a tax refund. […]

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HMRC Data Collection: New Regulations and Implications for Owner Managed Businesses

September 8th, 2023 | Categories: Employment, Legislation, News, Payroll, Tax

In a move to enhance tax compliance and tackle tax evasion, HM Revenue and Customs (HMRC) is set to implement new regulations on data collection. These changes, effective from April 2025, will have a significant impact on owner managed businesses and individual employees. In this blog post, we will delve into the details of the HMRC data collection requirements and explore the implications for businesses and employees. Understanding the New Rules Under the new regulations, owner managed business directors will be subject to increased scrutiny regarding dividend payments. Employers will also be obligated to report individual employees’ working hours. These […]

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