Tax Update

Presented byLaura Hughes ACCA

Presentation Overview

• RTI

• Sole Trader Vs. Ltd Company

• Allowable business expenses overview

• Free guides - Crunch website

• Question & answer session

• No longer required to submit a P35 to HMRC

• Deadline for filing final Payment submission of 13/14 tax year is 5th April 2014.

• Example of additional questions:

• Personal Service Company• Tax free payments

• Expenses• P11d

RTI - Year End Process

Sole Trader Limited Company

• You are the business and owner

• Self employed

• Individual pays income tax and NI

• Business is separate legal entity

• You are shareholder and employee

• Company pays Corporation tax

Sole Trader Vs. Limited Company

Sole Trader Limited Company

• Use losses against other personal income

• You are responsible for whole loss if business fails

• Company uses losses against its own past/future profits

• You have limited liability if business fails

• Improved perception from others

Sole Trader Vs. Limited Company

Business Travel• Public Transport

• Subsistence

• Accommodation

• Mileage

Allowable business expenses

Entertainment• Other entertainment• Staff entertainment

Possible P11d benefits - Why?

Allowable business expenses

• Accountancy fee

• Home office use

• Medical insurance

• Professional Subscriptions

• Telephone/Internet

• Training

Other allowable expenses

• Charity donations

• Childcare vouchers

• Eyesight test/glasses

• Equipment/furniture

• Pension

• Office costs like stationary

• Gifts

Part 1 of the test:

24 Month Rule - Travel

• Contract less then 24 months – Can claim

• Contract is 36 months – Can’t claim for any travel

24 Month Rule - Travel

Part 2 of the test:• Reasonable expectation of further work

• Same employer (your LTD)

• Different location - When the current contract ends

Free guides available for download

www.crunch.co.uk/guides

• Expenses Guide 2013-2014

• Limited Company Beginners Guide

• Directors Responsibilities

• IR35 Guide 2013-2014

Thank you for your time today.

Do you have any questions?