Tax

If you have made a loan to your business you should consider paying interest on the loan, as this will be an allowable deduction against the business profits. However, the interest will be taxable on the lender, so you need to consider the tax rate applicable to both parties.

For example, if the company pays tax at 20% and the director/shareholder pays tax at 40% this would clearly not make sense! If the loan is made to a company, the company will normally also need to deduct 20% tax at source and pay this to HMRC quarterly.

There are currently two very generous tax breaks for companies involved in research and development (R&D) , particularly those that go on to patent their products or inventions. Many such companies may not be claiming all the relief that they are entitled to.

In our hectic business lives, it is becoming increasingly important that we make the most of our precious time. Therefore being able to outsource routine tasks, such as payroll, could mean that you have more time to focus on your own business development and the way forward - or in the case of payroll - it might mean you get your evenings back once or twice a month!

Are you taking advantage of this rare allowance for UK businesses worth up to £2,000?

You may have read in your letter from Dave (Mr Cameron) that from the 6^th April the employment allowance is available for most businesses that pay employer’s Class 1 National Insurance contributions on their employees’ or directors’ wages. It is also available for Community Amateur Sports Clubs and Charities.

So, you’ve taken the leap and you have registered with HMRC as Self-Employed. What happens next? Well there are a number of things that you (or your accountant) need to do and that HMRC will do. In this piece I am focussing on National Insurance. Once you register as self-employed, HMRC will send you a letter (OK, it’s a bill) in respect of your self-employed National Insurance contributions. There are many types of National Insurance.

You need to inform HMRC when you start working for yourself. You should do this immediately and certainly within 3 months. You can either call HMRC’s helpline on 0300 200 3300 or you can register online.

Information that you will need to register as self-employed: