Knowledge

Holding companies are a useful tool in a corporate entity that can be used for a various range of planning activities.

One of the results of basis period reform, which is due to take effect from 6 April 2024, is that unless your business does not have an accounting period between 31 March and 5 April, you will have to apportion the results of two sets of accounts to work out taxable profits for the year.

As the owner of an unincorporated business, be it as a sole trader or in a partnership, a key step in determining your profit or loss is calculating the amount of allowable expenses that you have incurred over the year. These expenses can be deducted from your gross income (turnover) to determine whether you have made a profit (which may be charged to income tax and national insurance) or a loss (which may attract relief in a variety of forms).

When trying to unpick what kinds of taxes you will need to pay attention to, ‘Small business’ is a bit of a catch-all term which, unfortunately, does not mean anything when it comes to taxes. Therefore, it needs to be broken down.

The COVID-19 pandemic has accelerated the shift to remote working arrangements, these changes have resulted in more and more employees performing their duties away from their normal place of work.

Running a small business presents many challenges, and often it can seem that taxes are just another burden. It is therefore surprising that so many small businesses do not take advantage of the significant tax reliefs offered by HMRC.

It seems nowadays that accounting software is everywhere. We see it advertised on billboards, bus stops, social media, Radio and TV; which prompts people to think 'do I really need accounting software for my small business? Surely this isn’t meant for me?' In our experience the question should really be ‘can I afford to not have accounting software?’