During the expansion phase of a business. Clients invest a lot of money which is eligible for capital allowance but the company under which investment is made may not have sufficient profits to absorb it.
If a client has other profitable companies within the group. Current year’s capital allowance can be transferred to the profitable companies to reduce the tax over all group tax bill.
more information:
If one wishes to shorten the Tax year before the end of the tax year as per HMRC records.
It can be only done by calling HMRC.
It takes 15 working days to be completed at HMRC end.
Please note in case you are closing the company, please specifically ask the HMRC person you are speaking on the telephone to make the company dormant after the shortened period end date, otherwise HMRC will expect tax return for period after this date.
Also remember to change the `accounting reference date` in Companies House records.
From 6 April 2015 the starting rate of tax for savings income (such as bank or building society interest) will be reduced from 10% to 0% per cent and the maximum amount of taxable savings income that can be eligible for this starting rate will be increased from £2,880 to £5,000
more details:
http://www.ion.icaew.com/TaxFaculty/post/Starting-rate-of-tax-for-savings-income
Usual answer is no.
I have found that in case a company incures interest costs it is allowable as a deduction !
A well spent sunday afternoon!
What is it ?
A company in the UK qualifies as a Small Company if it fullfills two of the following three criterias:
Turnover – not more than £6.5m
Balance sheet total – not more than £3.26 m
Employee – not more than 50
UK Government has increased these limits to comply with EU Accounting Directive
via a new regulation
Turnover – not more than £10.2m
Balance sheet total – not more than £5.1 m
Employee – remain same at 50.
From when the rules change ?
Rules change for accounting period begining on or after 1 Jan 2016.
Why it is important ?
Small companies donot have to get their books audited.
This will reduce the administrative burden on lot of small companies and allow them to focus on their business.
Roy Accountants 