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Category: Company

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Green Door

Extracting income from a family company with no retained profits

Extracting income from a family company with no retained profits The Covid-19 pandemic has had an adverse effect on millions of family companies, potentially reducing or eliminating profits. Where there is cash in the business that can be withdrawn, possibly because the business has received a Coronavirus Bounce Back Loan or a Coronavirus Business Interruption…
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Driveway

Are the Coronavirus payments taxable ?

Tax implications of Covid-19 support payments Various support payments are available to individuals and businesses to help mitigate the effects of the Covid-19 pandemic. Are the payments taxable and how should they be treated? Payments under the Coronavirus Job Retention Scheme? Grants payments made under the Coronavirus Job Retention Scheme (CJRS) for fully furloughed and…
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The difference between Profit and Cash

What’s the Difference between Cash and Profit and Can a Business Be Profitable But Still Run Out of Cash? So, you want to know how a company can be profitable but still run out of cash? This article courtesy of Brixx is a terrific place to start. Part of the answer is that profit is…
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Companies House – Changes to Filing Dates

Companies House filing deadlines have changed The Corporate Governance and Insolvency Act became law at the end of June and with it came a raft of extensions to filing dates at Companies House. Where an extension is possible it has been automatically processed by Companies House and you no longer need to apply for permission…
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A beginners guide to business expenses

Business Expenses – A few basic rules Over the years I have seen some amazing claims for what taxpayers believe should be an allowable expense against their profits. From make-up to pet food for the guard dog. With this in mind I thought it worthwhile just going back to a few basic rules. The “Wholly…
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Dividends

What is a Dividend ?

What is a dividend? One of the most common questions I am asked is whether a Company Director / Shareholder can take a dividend to reduce their corporation tax bill ? I believe it is a popular misconception that a dividend is some sort of business expense that helps to reduce bills but it most…
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Outside the box

Why the way most accountants charge is just unfair

What would you say if a restaurant asked you to pay more for a well-done steak than a rare one? You wouldn’t be happy being asked to pay more in a restaurant for a well done steak because it takes the chef longer to cook than a rare one, would you? And you wouldn’t be…
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Coins

Discretionary Grant Fund

Discretionary Grant Fund The government have recently announced an additional fund of up to £617 million for local authorities to assist businesses that missed out on the earlier grant funding for shops, hotels, hospitality etc.. This additional fund is aimed at small businesses with ongoing fixed property-related costs. The government are asking local authorities to…
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Silver Coins

Profit extraction – the optimal salary for 2020/21

Profit extraction in 2020/21 – What is the optimal salary? A popular tax-efficient profit extraction strategy used by personal and family companies is to take a small salary and extract further profits as dividends. Where this approach is adopted, the starting point is to determine the optimal salary. While this will depend on personal circumstances…
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Exasperated man

How to calculate Statutory Redundancy Pay

How to calculate statutory redundancy pay While some help is available to employers through the Coronavirus Job Retention scheme to help them keep staff on during the COVID-19 pandemic, in some cases, it may not be possible to avoid making staff redundant. Where staff are made redundant and have at least two years’ continuous service,…
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