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Entrepreneur relief / MTD software

Small company ER problem / affordable MTD s/w

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Dear Sirs,

My wife & I are shareholders of my company, I am the director and she is the company secretary.  I don’t pay her as she works elsewhere.  If I sell the company, will her shares qualify for Entrepreneur Relief?

I have saved up money (cc 200K) in the company bank account to be ready should I decide to buy a workshop (I currently rent).   Another reason is that the accountant recommended paying dividends within basic rate of tax.  Would that prejudice Entrepreneur Relief?

Thirdly, I am wondering whether to purchase inexpensive software that could take photos of purchase and sales invoices and prepare VAT return using the Annual Accounting.  Any recommendations?

Thanking you for any help.

Replies (4)

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By Wilson Philips
09th Jun 2019 21:13

As company secretary she meets one of the tests. There isn’t enough information to comment on whether the others would be.

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By atleastisoundknowledgable...
09th Jun 2019 22:54

1. Possibly, not enough info to tell.
2. No.
3. Xero. FreeAgent.

Why haven’t you asked these questions of your accountant?

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10th Jun 2019 11:42

I'm here to try an answer question 3 (I'll let the accountant types answer 1 and 2)...

What type of system are you currently using to record your business records? I suspect, considering you have requested a recommendation for accounting software, you are using a paper method or a spreadsheet?

If the method you are using is paper then you'll need to go digital in some form or another (accounting software or a spreadsheet at least).

If you already use a spreadsheet then you simply need to use bridging software like our own solution, Easy MTD VAT (

Bridging software pulls 9 VAT figures from your spreadsheet then submits them digitally to HMRC. As long as your spreadsheet is Excel or it can export to an Excel format or a CSV file then you're good to go. There's no need to spend your valuable time and money moving over to a full blown accounting system like Xero or Freeagent.

Please feel free to take a look at Easy MTD VAT. You can even submit your first VAT return without paying a penny. After that it costs as little as £0.99 per VAT return.

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By danstopp1
11th Jun 2019 15:17

Have you thought about using a Free Accounting software? I actually work for a free accounting software called Bokio that allows you to take photos of purchase and sales invoices and prepare VAT returns using the annual accounting system and submit an MTD compliant VAT Return. There are also some other software such as Pandle that have free versions. I would suggest exploring the free options before purchasing a programme.

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