Member Since: 28th Sep 2010
15th Jun 2021
www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65365 does this help?
Thanks. It looks like there is generally no CGT to pay in both situations, e.g. transfer to spouse versus selling to the public.
30th May 2021
I am with BTC. They do advertise their prices online if you go on their website.
They have a good support team, i.e. quick replies to emails (a few hours). Easy to use software with lots of detailed YouTube videos explaining how to use it (therefore you hardly end up using their support team).
I have been with them for over a year and they did increase their prices after the first year but it was fairly minor (i.e. my monthly direct debit did go up by around 3%-4%). They offer discounts if you are a member of certain professional accountancy bodies.
I didn't go with TaxCalc in the end (last year) due to negative google reviews at the time, and I couldn't find detailed YouTube videos showing how to use the software from start to finish, and I couldn't find a support email address for them. I was also worried about whether or not they have any hidden fees or huge price hikes after the first year. BTC's fees seemed more transparent in the long term. Although I know many AWEB members love TaxCalc and probably my fears about TaxCalc are probably unfounded.
I was considering leaving BTC for TaxCalc due to price (although I've just noticed BTC have improved their pricing, i.e. it looks like you can buy extra individual licences rather than having to buy a bulk of extra licences that you don't actually need).
I would also be interested to hear from anyone who has made the jump from BTC to TaxCalc for accounts and corporation tax, in terms of price and support and how easy it is to use?
Although, ultimately, I think both companies long term (say 5-10 years+) are in trouble, as it looks like you can submit accounts and corporation tax returns using Xero and FreeAgent directly.
3rd May 2021
I am surprised that you need to provide unaudited accounts and an accountants report if you are self-employed. I thought this was only a requirement for limited company directors.
Presumably you would need to provide the accountant with your bank statements, invoices, and tax return, together with a spreadsheet showing how you calculated your tax return figures. The accountant will then presumably check everything, draw up accounts and the accountants report for you.
Given the last minute rush expect to pay around £500+VAT for this.
20th Apr 2021
I think you may need to factor in any corporation tax due to HMRC when you sell original truck for £26k
20th Apr 2021
How does the non-taxable dividend work?
If you allocate salary payments to the director as non-taxable dividends in the accounts then won't the company profit increase and a resultant corporation tax liability?
Would it be better to do the RTI as non-taxable salary and claim this as an expense to reduce profit and reduce corporation tax?
Also, would it be better to make the pension contributions personally and save 40% income tax? Rather than making an employer contribution and saving 19% corporation tax?
I would assume that a deemed payment is qualifying earnings as the fee-payer would have processed payroll and given the contractor pay slips and P45/P60, i.e. it is employment income.
20th Apr 2021
I think the poster is confusing director's loans and inter-company loans?
Or maybe worried about accounting standards and interest free loans?
17th Apr 2021
You just have to process any salary payments made to the contractor from their own limited company as non-taxable salary payments and submit the RTI to HMRC.
The PAYE and employee NI that should have been deducted by the public sector or recruitment agency should be left in the company as presumably the public sector client or agency will want this money back at some point, i.e. DR Wages and CR creditors.
17th Apr 2021
I think FreeAgent are currently working on the directors loan account tax and carrying back losses. Potentially they may have it sorted later this year or next year.
I believe some of FreeAgent's user base are freelancers, consultants and contractors, i.e. 1 man bands who work for an 'employer' on 6 month long contracts. Consequently I don't see many FreeAgent users going R&D claims.
I guess the 'contractor' client base will be eroded away over the next 10 years just leaving actual small businesses who have employees, and more complex affairs.
17th Apr 2021
Many FreeAgent users are affected by IR35 and are now closing their limited company, and going PAYE with an umbrella company, agency or the actual end hirer.
Consequently FreeAgent may end up in a situation where they have spent £thousands on a functionality but not have many customers.
I think FreeAgent wants to partner with accountants as they see this as an important way to gaining more users quickly. But I ultimately see accountants going down the FreeAgent route as effectively slitting their own throats.
15th Apr 2021
A + C seem virtually identical.
B seems wrong.
I think there is a box you need to tick with the payroll/FPS to let HMRC know that it is a deemed employee. I believe this box also helps for other reasons, e.g. no pension contributions, no student loan deductions, etc.