If an employee is provided with a car by their employer, tax is payable on the cash equivalent of the of car provided.
The cash equivalent of the company car provided is calculated by taking the list price of the car, multiplied by a certain percentage, this percentage depends on the amount of carbon dioxide emitted by the car.
The list price of the car is calculated using the following formula: (more…)
The Criminal Finances Act came into force on 30 September 2017. Part of the Act means that companies and partnerships can be criminally liable where they fail to prevent those who act for, or on behalf of, the business from criminally facilitating tax evasion.
There is, however, a potential defence against this offence by the business putting into place a system of reasonable prevention measures. The penalties for the offence include unlimited financial penalties and ancillary orders such as confiscation orders. The Act doesn’t change what tax fraud is, just who may be liable. (more…)
You’ve made the decision to set up your own business. It’s an exciting time and you’re keen to get going, but you need more startup cash than you have savings, so you’ll have to find an external source of finance to help you with your startup funding. Going to visit your bank manager is probably the first place you think of for a business loan, but it’s a good idea to look at other options available before you apply for any kind of business investment. (more…)
A study undertaken by the Centre for Economics and Business Research study found that SMEs, on average, spend around a million pounds a year on their business operations. Those with more than 50 staff spend an average of £3m every year on goods and services; micro businesses, i.e. those with fewer than nine employees, spend an average of £225,379.
The study was able to drill down into the figures, discovering that the average SME spends 24% of its budget on hiring new staff, 20% paying suppliers, and 19% on technology. The good news is that older businesses tend to spend less on expenditure. However, overall, it shows the importance of managing cash flow at all levels of business.
Here’s our breakdown of these, and other expenditures that make up the majority of an SME’s costs: (more…)
The Ambition conferences are a hugely important business and community initiative for two reasons. Firstly, it’s an incredible resource designed to help Hertfordshire entrepreneurs and small businesses develop their sales and marketing skills in order grow their businesses. Secondly, 100% of our ticket sales go to two amazing local charities.
I have been involved in all four Ambition conferences and am a huge advocate. The conference is organised on a voluntary basis by local SMEs who believe that if we work together and support each other, we can all benefit from the business opportunities in Hertfordshire, with a consequently positive knock-on effect on the local economy. (more…)
HMRC allows certain gifts to be made in recognition of long service, subject to some conditions. To qualify, the gift: (more…)
Keeping accounts up to date and accurate is a vital part of running a small company, but, when it’s not part of the core business, owners tend to find it difficult in terms of motivation and execution.
That’s why accounting software packages are so popular. They make it easier for you to keep your accounts in good order, and will also help your accountant do your books at the end of the financial year quickly and more efficiently.
In no particular order, here are some of the many accounting packages on the market. (more…)
It’s always good to get an insight into someone else’s working day, that’s why we like to focus on different members of staff for our ’A Day in the Life feature’. This time, one of our Directors Keith Grover describes a typical working day.
The alarm goes off at the usual time of 6.00am. I’m up straightaway or else I’m struggling! I go downstairs for a shower, breakfast, stroke the cat and read the Bible. Before I leave, I check my emails. I live in St Albans and drive to work, so leave the house at 7.00am, popping into a local newsagent to buy a copy of The Times newspaper en-route. I arrive in the office at 7.30am. (more…)
Starting your own business is exciting, risky, hard work and scary (especially if you’re giving up a full-time job in order to launch your own company), but at the same time it can be tremendously fulfilling as well as profitable.
According to the latest figures, the number of UK start-ups is booming – in 2016 there were a record-breaking 657,790 new businesses. In East Hertfordshire alone there were nearly 4,500 new businesses, which is terrific news for the local economy.
If you have a really good business idea and are determined to help break start-up records in 2018, there are a number of organisations you can turn to for support, mentoring and training to enhance your chances of becoming a success. We’ve taken a look at some of their advice:
In this tax blog, we will discuss the newly introduced (from 6th April 2017 onwards) residence nil rate band and what this will mean for our clients.
What is the Nil Rate Band?
The nil rate band, also known as the inheritance tax threshold, is the amount up to which an estate has no IHT to pay. Each person’s estate can benefit from the nil rate band.
Everyone has their own nil rate band. This means that their estate and taxable gifts are exempt from IHT up to a certain threshold – currently £325,000. Any part of the estate up to the threshold is chargeable to IHT at a rate of 0%. Any part of the estate that exceeds the nil rate band threshold is chargeable to IHT on death at 40%. (more…)