Minerva Accountants Bristol and Somerset
Fully digital Xero accountants for consultants & service businesses
If you have put money into your limited company that has not yet been repaid then you can pay yourself interest on this loan. This can be a tax efficient way to take money out of the company BUT you would need a CT61 form completed for HMRC each quarter.
If, on the other hand, you have borrowed money from your company then you may face a higher tax charge and even a personal tax charge.
From 1 April 2027 all small and micro businesses will need to file a profit and loss accounts at Companies House. This makes sense as an anti-money laundering measure but it can mean sharing confidential information such as turnover and margins with competitors.
As the tax benefits of trading through a limited company are now minimal you may prefer to become a sole trader or partnership BUT remember that MTD (Making Tax Digital) will mean quarterly tax filings from April 2026.
Talk to us if you want to learn more.
All shares of the same class must receive the same dividend. For example, if you have 100 ordinary shares and vote a dividend of £10 per share then each shareholder must receive £10 for each of their shares. These dividends should be paid into an account in the shareholder’s name.
If you wish to pay different shareholders at different rates then you will need to have different share class. These are often, rather unimaginatively, called A shares, B shares, etc and usually referred to as alphabet shares. Each class may also have different rights (voting, distributions on winding up, etc) It is simplest if these different share classes are created at incorporation.
Alphabet shares need to be structured correctly to minimise any challenge from HMRC. Definitely not one to do yourself.
Eye test and glasses
If you run a limited company and need to use a screen for your work then you can claim the cost of eye tests against tax. You can also claim for your employees which is a small, tax free perk.
Sorry, sole traders and partnerships can’t claim this. Yet another example of where the rules are different for limited companies and unincorporated organisations.
Mileage rates
The simplest way to claim your car costs against tax is to claim the standard HMRC allowance of 45p per mile. Most business owners are familiar with this but there are circumstances when the rate is different.
This standard allowance is to cover: fuel, MOT, insurance, maintenance, road fund licence. It does not include parking and tolls.
Penalties are increasing from this month. These are completely avoidable if you keep proper accounting records and keep them up to date.
We send our clients several reminders in addition to the reminders that they get from HMRC but, even if you use and accountant, you are responsible for ensuring that everything is submitted correctly, and on time.
If you’re taking on seasonal staff over the Christmas period then the normal employment rules apply.
Capital gains tax when selling your home.
If your home has always been occupied as your principle private residence then any increase in value is probably covered by Private Residence Relief so no tax is payable. BUT, if your property has ever been rented out, left unoccupied, or served as your second home then you may have to pay capital gains tax within SIXTY DAYS of disposal.
Estate agents and solicitors don’t usually mention this to their clients so it’s up to you to remember to avoid late filing and payment penalties.
There are various exemptions and allowable costs so we’re happy to do the calculations for our clients to see if they need to pay. (We don’t do them for non-clients as, frankly, they’re done manually so they’re a pain.)
Research and development tax credits are a government incentive to encourage companies to invest in INNOVATION. Over recent year HMRC have tightened up on what qualifies for research and development tax credits.
Please ensure that your research is original work.
Your project may research or develop a new process, product, or service or improve on an existing one.
You must explain how your project:
Much of the ‘research’ that businesses previously tried to claim is now being rejected.
This week saw the release of the quarterly ICAEW South West business confidence monitor. Have a read to see how the region is feeling about doing business. Do you feel the same?
Although generally positive late payments and increased regulation are worrying many.
In a separate survey, almost 50% of businesses said their costs had risen because of the increase in the National Living Wage. Almost 20% put up prices to cover the increase. Around 20% have already improved efficiencies, including using automation and investing in technology. Others have closed pay gaps and increased upskilling of staff in response.
On Friday 2nd August at 8.30am ICAEW will be holding an online discussion and overview of the results for the South West Region, led by ICAEW Head of Business, Simon Gray and Ed Tellwright from the British Business Bank – to join us please register here.