Download - Milner Boardman Know Your Numbers
Milner Boardman Know Your Numbers
Milner Boardman Know Your Numbers
What entity should I use?
•Sole Trader ship
•Partnership
•Limited Company
•Limited Liability Partnership
Should I Incorporate Spread sheet
Milner Boardman Know Your Numbers
How to structure tax efficiently
•Salary Vs Dividends
•Spouse as employee/shareholder– Non working spouse– Lower earning spouse
•Alphabet shares– Different dividend rates
Milner Boardman Know Your Numbers
Setting up to avoid future pitfalls
•Partnership Agreement
•Shareholder Agreement
•Cross option Agreements
•Cross option death cover
•Key man insurance
•HMRC Compliance – Insure?– Get it right from the start
Milner Boardman Know Your Numbers
Accounting Systems
•Xero
•Sage 50
•Quickbooks
•Hosted Vs Non Hosted– Pros & Cons
•What else do I need?
•Demo Xero www.xero.com
Milner Boardman Know Your Numbers
VAT Registration
•Voluntary VAT Registration – Who are customers?– Can they re-claim VAT?– Advantages of Voluntary registration – Disadvantages of Voluntary registration
•Compulsory Registration – Threshold for Registration – Threshold for De-registration
•VAT Flat Rate Scheme
Milner Boardman Know Your Numbers
VAT Registration
•Cash Accounting or Accruals Accounting – Threshold – Advantages – Automatic Bad Debt relief
Milner Boardman Know Your Numbers
VAT Registration
Complexities
•International Supplies– Place of supply (French Lorry)– Reverse charge
•Special Schemes
•Partial Exemption
•Property
•Carousel Fraud
Milner Boardman Know Your Numbers
PAYE
•Any employees?
•Directors– Efficient remuneration level (next slide)
•RTI
•Auto-enrolment
•Up to date software?
•Use bureau?
Milner Boardman Know Your Numbers
PAYE - Directors Salary
Milner Boardman Know Your Numbers
What Expenses Can I Claim
•Cost of running business
•Mileage Vs Car Provision
•Subsistence
•Clothing – Problem Area
New Business Kit
Milner Boardman Know Your Numbers
Established Sole-Trader/Partnership/Business
•Should I Incorporate•Sale of Goodwill?
– Where does goodwill lie?
•Downsides– Compliance cost– Public information
•Upside– Limited Liability – Tax savings
Milner Boardman Know Your Numbers
Sale of Goodwill to Limited Co
Milner Boardman Know Your Numbers
Limited Company – Problem Areas
•IR35
•Prohibited Professions
Milner Boardman Know Your Numbers
Aggressive Tax Planning
•Examples
•HMRC attitude
•Current climate
Milner Boardman Know Your Numbers
Tax Problems/Pitfalls•HMRC Focus
– Specific Trades
– Specific Sectors
– Status Issues
– Construction Industry
•Pitfalls– Cash trading (under declarations)
– ML Regime (SOCA)
– Claiming excessive costs
– Cars/Pool Cars
– ER
Milner Boardman Know Your Numbers
Employee Share Ownership/Reward
•EMI
•Employee Share Scheme
•Others
Rewards
•Salary Sacrifice Schemes– Nursery/Child care vouchers – Cycle to work
Milner Boardman Know Your Numbers
Legal Requirements for Businesses
•Limited Co/LLPs– Full Accounts for share holders/members– Abbreviated Accounts for Co House– Ibrxl Accounts for HMRC– CT Return to HMRC – Cos– Partnership return to HMRC-LLPs– Governance
• Companies Act• Other Legislation (employment etc)
Milner Boardman Know Your Numbers
Legal Requirements for Businesses•Sole traders/Partners
– Full Accounts for owners• Lower disclosure
– Accounts transferred to tax return – Tax return for owners– Governance
• Other Legislation (employment etc.) • No Co. Act
Beware time limits
Milner Boardman Know Your Numbers
Understanding a Balance Sheet/P & L
•Limited company accounts
•Partnership accounts
Milner Boardman Know Your Numbers
Strategic Planning•Personal goals
•Corporate goals
•Developing a strategic plan
•Working to a strategic plan– Where are we now?– Where do we want to be?– When do we want to get there?– Do all stakeholders have the same view?
•Benchmarking
•Planning tools
Milner Boardman Know Your Numbers
Tony Collier
0161 927 2727
www.milnerboardman.co.uk