Member Since: 11th Jan 2013
31st Jan 2019
Yes he's now a director. He was an employee and he got made redundant at the start of the year (May 18). He received a redundancy package part of which was taxed so assume must have been over £30k.
Didn't do anything between May 18 and Nov 18, starting up as a consultant in Dec 18, hence my involvement.
I don't know how the state pension entitlement is calculated? Any help appreciated....
18th Oct 2018
Your right so here's more info. He's in the BR Tax Band.
The payment is £4,000 (commercial rate of interest).
The company deducts 20% and pays this to HMRC (£800) but saves CT at 19% on the £4k = £760. So the net cost to the company is £40.
He then includes the gross £4k on his personal tax return (after £1k sav allow) only £3k is taxed at 20% = £600, but he receives the credit of £800. He has other taxable income, so this whole thing saves him £200 (which is the 20% on his savings allowance).
So it saves him £200, but costs the company £40, bringing the net saving to £160.
I hope the above logic is sound? Could you expand on point 2? How do you arrive at 5.26%? Thanks
9th Oct 2018
What has been disposed of?
I was referring to Section 22 to 24 TCGA 1992, which explains the process of dealing with compensation for an asset which is damaged or destroyed. In this instance it's damage.
I must admit my initial reaction was inline with lionofludesch. I was intending to match any compensation against repairs and tax any residue, but on reading the above it made me think???
9th Oct 2017
OK thanks John, as I thought and your interpretation is correct.
6th Oct 2017
Tim Vane wrote:
Nicks9991 wrote: Anyway most of them receive over £5,000 dividends so are now required to.
Now you're just being deliberately provocative. In addition to directors not being required to file a tax return, there is also no requirement for somebody with over £5,000 dividends to file a tax return.
OK so if you receive between 5k - 10k in dividends you have the option of asking HMRC to collect the tax via your tax code, but anything over 10k is a definite tax return requirement.
However to avoid awkward conversations (multiple in my experience), I file a return for all Ltd Co directors.
6th Oct 2017
I'm not sure what Nicks9991 is all about???
Anyway, I used to adopt the approach and not file a personal tax return for directors just on the basis that they were a director. Which is correct I agree.
However, the headaches this caused me with director clients receiving tax returns but not informing me and then blaming me that I should have been filing this for them. Also calling up HMRC who were telling the clients that I was wrong and "all directors are required to file personal tax returns", was too much (boohoo)
So now I've adopted the approach of filing tax returns for all directors. Anyway most of them receive over £5,000 dividends so are now required to.
29th Feb 2016
Legal advice is the correct answer
cheekychappy wrote:Legal advice is the only sensible answer. If they set up a new company doing exactly the same thing that turns out to be successful, the shareholder might surface and make a claim in the new company.
Yes your right, legal advice will be my answer. However, as the remaining 2 directors have diversified and the trade they are doing now is completely different to that which the original company was created to do, I think creating a new company which is conducting a separate trade is an option. They will have to be prepared to write off the loss they had incurred in the original company.
25th Nov 2015
Here's a good one if you want to know how many times something in list B is reoccurring in list A
Assumes the numbers start in cells a1 and b1
25th May 2015
Depends on you personal circumstances, I could quickly run through it with you over the phone. Why don't you PM me a tel number and a good time to talk. I'II give you a call back and run through your options.
23rd Apr 2015
Yes, but the meal has to be provided to ALL employees in either a canteen or on the employers premises. See EIM21671
Care needs to be taken, you cannot just provide a cash allowance for an employee for meals without operating NIC or PAYE.
In the last firm of accountants I worked for we had 200-300 contractors set up as one man band companies. I know we used to create a journal entry at the year end whereby we debited P+L say £750 and credited DLA £750 (the £750 being the annual allowance for meals).
Not sure if other accountants would be happy with this, but we did have the odd enquiry into returns and the inspector did not question it.