Business, Accountancy and Tax Related News

Using a Company to Hold Buy-To-Lets

Recent and ongoing changes with the way that buy-to-let property is taxed have caused many landlords to consider transferring ownership of their properties from themselves to limited companies. Every landlord and every landlord portfolio is different, so this is one taxation question that no universal answer works for everyone – this is something you definitely need help with, from an accountant. In this article, the Maple Accounting team will explain how having your company own your buy-to-let properties could, possibly, result in the taxman taking a smaller share of your earnings but how there might be a big price to pay for that benefit. What attracts landlords to using companies? From the 6th of April 2017, mortgage interest relief restrictions have been implemented which have made the tax on buy-to-let investments rise significantly for higher rate taxpayers. Before this date, landlords paying higher (40%) and additional (45%) tax rates could […]

Get Your Invoices Paid Faster

Reducing the time it takes to get invoices paid When your business is wrestling with cash flow issues, the time it takes for invoices to be paid is normally identified as being one of the main reasons why. Britain has always had a problem with late payment – it closes perfectly viable businesses and stunt growths in those who have the cash (or access to finance) to ride through the storm. But what can you do to get your clients to pay you faster? Maple Accounting investigates. You have more control than you think. You send out your invoice when you have provided a product or a service for a client to their satisfaction. What that tells you is that they need your expertise just as much as you need their money. This gives you more bargaining power than you might expect when you start to negotiate the terms of […]

Requirement to Correct – what do you need to know?

You will have no doubt heard about HM Revenue and Customs’ ongoing efforts to crack down hard on tax evasion over the last decade. Also, in recent years, HMRC have employed an ‘iron fist in a velvet glove’ approach for cases of offshore tax avoidance. We are, of course, talking about Requirement to Correct; a scheme implemented by HMRC to encourage those with undeclared offshore tax liabilities to come forward voluntarily in exchange for lighter penalties. What HMRC have to say about Requirement to Correct The Requirement to Correct concerns those with offshore tax liabilities that they have not yet declared to HMRC, relating to any Income Tax, Inheritance Tax, and Capital Gains Tax they may owe. The legislation states that these people must disclose these undeclared liabilities “to HMRC on or before 30 September 2018”. So, what exactly is affected by Requirement to Correct? You will need to inform […]

The dangers of growing too quickly

While many think that the riskiest period in owning a start-up is during take-off, research suggests that this is not always the case. According to research from Ormsby Street, 91% of small businesses survive the first year of trading, whereas, after just five years, only four in ten of these will still be trading. So why do these seemingly successful new companies fail over time? The answer is quite simple. Survival of the fittest. Once your business starts to turn a profit, the most logical next goal will be to try to grow in size. The business world is ever changing so making sure your company adapts to those changes and expands carefully over time will be the secret to your success. However, the way you do this must be careful. Adapt, grow too slowly and competitors will overtake your business. Grow too fast, and you could experience a whole […]

Self-employed vs. Limited company

When you are starting a business, there are so many questions that you will need to answer. Who are you going to market to? What is it that you are selling? How much profit do you need to make to stay afloat? One question that is often overlooked is “Should you be a sole trader or set up your own limited company?” In this article, Maple Accounting will explain which the best option for your business is. Self-employed – Pros Establishing yourself as a sole trader can be done in a day. The process is quick, easy, and free. HMRC can acknowledge you as a new sole trader in as little as 24 hours and everything can be done through their website here. When you are self-employed, accounting is also a very simple process. One of the main reasons that bookkeeping is so straightforward for sole traders is because all […]