Category Archives: Tips

Alphabet Shares: A Tax-Efficient Strategy for Businesses

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, […]

  When it comes to the correction of VAT errors, you want to make sure you are documenting everything properly. It’s important to identify the most common mistakes so you don’t make them. In today’s blog, we will break down these common mistakes so you can easily identify what to look out for. How do you report a VAT error? An error many people face when dealing with VAT is finding the odd error in their records. This can be easily rectified. As stated by; “When notifying HMRC of an error correction you should use form VAT652. This can […]

Personal Tax Video Tutorial

HMRC will soon require you to set up a personal tax account in order to add your tax agent or accountant so they can access this to obtain more detailed information about your tax affairs. If you are looking into setting up a personal tax account but feel a little unsure on how to do it then we have you covered. In today’s blog, we will break down all the steps you’ll need to follow when setting up this account. And letting you know what you need, to ensure it’s all set up properly. There are instructions in both text […]

Important Tax Year Dates

As we approach the end of another year we thought it would be helpful to provide you with a list of important tax year dates for your diary. The UK tax year is different to the calendar year and is used to calculate tax payable or owed. It starts on the 6th of April each year and ends on the 5th of April the following year. Also referred to as the financial year, it is a period of 12 months which is used to calculate tax for employed and self-employed tax payers. However, not all businesses manage their books according […]

Electric Car Tax Benefits

As well as the well known environmental benefits, there are also lots of electric car tax benefits.  From government grants to benefit in kind allowances, there are reasons to lease or buy an electric car via the company and make it available for private use to an employee/director. In this blog, we will go through the grants available and the benefit in kind implications of buying an electric car through your business. Benefit-In-Kind Implications One of the key electric car tax benefits is a very low benefit in kind (BiK) rate. This makes it a highly tax-efficient option for individuals and […]

Budget 2021

In this highly anticipated Budget announcement, there was a real focus on support for businesses and individuals whilst the lockdown is still in place and plans to help the economy recover once restrictions are lifted. The Chancellor opened by stating that he wants to be honest about the government’s plans for fixing the public finances and set out plans for the future. Making it clear that he would do… “whatever it takes” during the pandemic, and that he has done and will continue to do so, he added that “It’s going to take this country, and the whole world, a […]

The Importance Of Cash Flow

How Cash Flow Planning Can Help Your Business Recover From Covid-19 For business owners, one of the hardest questions posed by the outbreak of Covid-19 was “How long can we last without cash flow?”.  To quickly adjust for the difficulties ahead and with cash flow forecasts being a required part of the application process for government-backed loans, many found it necessary to take a good hard look at their budget. In this instance, cashflow planning has prepared businesses for the impact of the pandemic. But it’s much more than just a tool in a crisis. The Importance Of Cash Flow […]

Understanding Accounting Terms

The accounting world is full of an overwhelming amount of financial terminology and abbreviations.  The number of accounting terms can confuse the most astute business owner. How can you make sure you are meeting all of your legal obligations if you don’t understand what any of it means? Many business owners will be very familiar with a lot of the accounting terms, but not what they mean. With that in mind, we have created a quick guide to de-bunk the most popular terms. A Account A formal record that represents a single aspect of the business i.e. money, assets or resources. […]

Thinking Of Starting A New Business?

Here at KA Farr & Co we are passionate about ensuring every new business succeeds which is why we have put together our top tips for success. Why do new businesses fail? According to Bloomberg, 8 out of 10 new businesses fail within the first 12 months. A whopping 80% crash and burn. Here are the main reasons why: Lack of planning The first steps in setting up a new business are crucial and will give your business the best start, and a firm foundation on which to grow. Businesses fail because of the lack of short-term and long-term planning. […]

Are You Ready for the Changes to Landlord Tax Relief?

Some time ago we brought you the news that changes were coming to the amount of tax relief landlords could claim. A number of the changes the government is set on introducing could have significant effects, so we thought we’d bring you this quick reminder and update on what’s coming.