Category: Start-Ups

Dividend Complexities

The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000 from 6 April 2018. The cut is likely to have a significant impact on employees and directors of small businesses who receive both salary and dividend payments. Many family-owned companies allocate dividends towards the end of […]

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New Rules for Cash Basis Accounting for Small Businesses

Cash basis threshold increased The cash basis is a simpler way for smaller businesses to work out their taxable profit. Under the cash basis, profit is calculated by reference to cash in and cash out, rather than by reference to income earned in the period and expenditure incurred, as is the case under the traditional […]

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Tax Relief for Pre-Trading Expenditure

Before any business can start to trade, there is a certain amount of expenditure that is inevitably incurred. For example market research; kitting out of business premises; financial advice in preparing business plans; travel costs; supplies; advertising etc. Although the business bank account doesn’t exist yet, you can still get tax relief on these vital business costs […]

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