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


How to structure tax efficiently

•Salary Vs Dividends

•Spouse as employee/shareholder– Non working spouse– Lower earning spouse

•Alphabet shares– Different dividend rates


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


Accounting Systems

•Xero

•Sage 50

•Quickbooks

•Hosted Vs Non Hosted– Pros & Cons

•What else do I need?

•Demo Xero www.xero.com


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


VAT Registration

•Cash Accounting or Accruals Accounting – Threshold – Advantages – Automatic Bad Debt relief


VAT Registration

Complexities

•International Supplies– Place of supply (French Lorry)– Reverse charge

•Special Schemes

•Partial Exemption

•Property

•Carousel Fraud


PAYE

•Any employees?

•Directors– Efficient remuneration level (next slide)

•RTI

•Auto-enrolment

•Up to date software?

•Use bureau?


PAYE - Directors Salary


What Expenses Can I Claim

•Cost of running business

•Mileage Vs Car Provision

•Subsistence

•Clothing – Problem Area

New Business Kit


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


Sale of Goodwill to Limited Co


Limited Company – Problem Areas

•IR35

•Prohibited Professions


Aggressive Tax Planning

•Examples

•HMRC attitude

•Current climate


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


Employee Share Ownership/Reward

•EMI

•Employee Share Scheme

•Others

Rewards

•Salary Sacrifice Schemes– Nursery/Child care vouchers – Cycle to work


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)


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


Understanding a Balance Sheet/P & L

•Limited company accounts

•Partnership accounts


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


Tony Collier

0161 927 2727

[email protected]

www.milnerboardman.co.uk

milner boardman know your numbers

Documents

professions milner boardman

start milner boardman

numbersmilner boardman

spread sheet milner

limited comilner boardman

tax return tax return

structure tax

houseibrxl accounts