The Enterprise Investment Scheme (EIS)

What is EIS? The Enterprise Investment Scheme is now 25 years old and through it, qualifying companies have raised over £18 billion. Administered in HMRC by the Venture Capital Reliefs Team (VCRT) – formerly the Small Companies Enterprise Centre (SCEC) – EIS allows investors to invest up to £1m in EIS companies in any year (£2m if the company is …

Tax on Christmas bonuses

Christmas bonuses or gifts paid in cash by employers to employees are almost invariably taxable as earnings. The Courts have upheld decisions on many occasions and this can mean that a gift from a well-intentioned employer is worth less than the giver or the recipient initially expected. If you are an employer and looking to give a Christmas bonus to …

Less than 100 days to go to submit your Self Assessment!

HMRC has published a news release to remind you that you have less than 100 days to file your 2018-19 tax return. Last year over 11.5 million taxpayers were required to complete a Self Assessment tax return but over 700,000 people missed the deadline. The deadline for submitting your 2018-19 Self-Assessment tax returns online is 31 January 2020. Please also …

What expenses can I claim through my limited company?

When it comes to understanding what expenses you can claim through your company as a company director, there is one phrase it is important to remember. Your expenses must be incurred “wholly and exclusively” for business purposes. But first, let’s understand exactly how ‘expenses’ are defined and what the implications of paying for them through your company are. We will …

What taxes do I have to pay if I’ve just arrived in the UK?

Moving between countries, whilst a fantastic and often life-changing experience, can create a huge amount of additional personal administration, not least of which involves ensuring you are complying with all the new local tax legislation. UK tax law is extremely complicated so, understandably it will be impossible to answer this question exhaustively in a short article. Here, we are going …

What is a director’s loan account?

After you’ve finished your business plan, set up your new limited company and opened your commercial bank account, you are finally ready to start doing some business. Once you have signed up your first clients, the funds in your company bank account will start to build up and you will inevitably want to withdraw some of these funds in order …

Innovator and Start-up Visas: how can I increase my chance of success?

Since the closure of the Tier 1 (Entrepreneur) visa route* by the Home Office in March 2019, uncertainty and ambiguity have surrounded the government’s new Innovator/Start-up visa schemes. Instead of assessing an applicant’s business ideas themselves, the Home Office have now essentially passed on this responsibility to a group of ‘endorsing bodies’. These organisations now receive applications directly from aspiring …

What is my company accounting period?

Your company’s accounting period (also called ‘accounting reference date’) is usually set when you incorporate a new company with Companies House, with the end of the financial year being know as the company’s ‘year end’. In general, the year end is set at the end of the month 1 year after the company’s incorporation, and is an important date as …

What is Bookkeeping?

As a startup, it is tempting to focus purely on activities that will help you to increase sales or market share. Indeed, this is the main challenge for the future development of your company by a significant margin. It is, however, only one aspect of starting a new company. It is also of vital importance to ensure that the everyday …