November 19 Newsletter
October 31, 2019
BUSINESS UPDATE
3 simple tips for small business tax planning
In an ideal world we would have profitable companies paying very little tax. Here are some tips on how you can reduce your tax liability.
1) Spouse shareholder-director
The most common way to reduce your individual tax burden is by bringing your spouse into the business as a shareholder - director. This allows you to take advantage of the extra tax-free allowance for the household income.
2) Pension planning
This can be an effective method of reducing a corporation tax bill. If the cash funds are available, then put some money into a pension contribution for a director. This will however reduce funds in the business's available cash flow.
3) Share schemes
Share incentives for staff are a popular way of rewarding loyal staff. Although please make sure that you award shares via an HMRC approved scheme to avoid employees having a tax liability on any shares that they have been awarded.
If you would like to know if you could use any of these tips, please contact us.
ACCOUNTING UPDATE
Christmas Parties
It is Christmas Party season... so what can you claim and what should you be wary of?
What can I claim?
Up to £150 per year, per guest (including vat)
The £150 exemption includes transport costs and any accommodation provided
You can only claim back vat on your employees, not for non-employees
What should I be wary of?
All employees should be invited
£150 is an annual exemption (for all parties in one year)
If the cost for the party exceeds £150 per head, then the whole cost is seen as a benefit and is charged to the employees
To calculate the cost per head: divide the total cost of the function by the total number of people going, including non-employees
If you hold 2 annual parties, e.g. one is £100 per head and the other is £80 per head. Only the more expensive party will be exempt, the other party will be treated as a benefit. The £150 is not an allowance and cannot be used to set against a larger figure
We hope you have fun, however you are celebrating!
APP OF THE MONTH
All your cards in one!
What does this mean?
We use Curve all the time, I only have to carry one bank card and remember one pin! This is basically a front for all of your other bank accounts.
No longer paying on the wrong bank card!
We give Curve cards to all clients as it will prompt you to take a picture of the receipt when you spend on the card, we then set it up to email directly into Xero.
Key thinks that we like:
Prompts you to take a picture of your receipts when as soon as you make the payments
Allows you to carry one bank card instead of several
Can use the "go back in time" feature to pay from personal or business accounts if you couldn't change it at the time.
Mobile app to take a picture and upload wherever you are
Free foreign exchange as Curve will convert to GBP before charging your bank account
Instantly "lock" your card if you lose it through the app
Curve has also just completed a £5,000,000 record-breaking crowdfund campaign in
Contact us if you would like to know more about how Curve could help you.
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