If a business charges more VAT to customers than it pays on its own purchases, the difference must be paid to HMRC. Conversely, if a business pays more VAT than it charges, the difference can be reclaimed from HMRC. However, the VAT Flat Rate Scheme works differently – and this is what we will look…
In certain circumstances, larger companies and those with a progressive outlook will issue shares to employees as part of a benefits package. Setting up employee share schemes can be mutually beneficial to both companies and employees in terms of tax savings opportunities, attracting and retaining the very best talent, and creating a happy and productive…
Various taxes need to be paid in respect of company shares. Shareholders should be aware of the tax liabilities that may arise when they buy, sell, or make any money from their shareholdings. We will consider the specific forms of tax on shares below. 1. Stamp Duty – buying shares Stamp Duty is most commonly…
If a UK limited company carries out business operations overseas (e.g., runs an international office, shop, or factory), any profits made abroad will generally need to be added to the overall company profit for the purposes of Corporation Tax. However, the company may also be subject to foreign tax on income made abroad. Below, will…
Company directors are officially classed as office holders. Even if you’re a sole director of a small company and you run the business all by yourself, you are not automatically an employee of the company. The status of ‘employee’ is only afforded to directors under certain conditions, which we will discuss below. When is a…
The vast majority of companies in the UK are limited by shares. However, some organisations choose to be limited by guarantee. At some point during the life of a company, as a result of a change in direction or policy, it may become preferable to operate under the alternative setup. But can you convert a…
Each year thousands of businesses are asked to complete business surveys for the Office for National Statistics. Similar to jury service, being selected to take part in a survey is relatively random and complying with the request is a legal requirement. So what is the ONS and what is the purpose of their business surveys?…
There are two methods of removing a company from the Companies House register: voluntary strike off and compulsory strike off. These are mutually exclusive and their use depends on the particular circumstances of a limited company. We will take a look below at the differences between these two limited company strike-off processes. What is voluntary…
Limited by shares companies must assign a nominal value to each of their shares during their incorporation (for example, £1, £0.50, £0.01, etc) The nominal value of shares represents the ‘limited liability’ of company members, which is the sum of money that shareholders are legally required to pay on each of their shares upon the…
Setting up an online business in the UK is an increasingly popular option for both start-ups and established ‘bricks-and-mortar’ retailers. With more consumers than ever before now choosing to shop online, the UK has the largest e-commerce market in Europe and the third largest in the world. The Coronavirus crisis has further accelerated the shift…
There is a wealth of information available online extolling the benefits of forming a limited company. Whether you’re a startup or an established business owner keen to switch from a sole trader or partnership model to an incorporated company or LLP structure, you will find troves of government information and well-written business blogs offering valuable…
Electronic signatures have been around for a number of years and have been applied to a variety of documents that previously required a physical ‘wet ink’ signature. But can an electronic signature alone be relied upon to process all corporate documentation? We will take a look below at some of the legalities and practicalities of…
