Blog

Corporation tax : Shorten tax year

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.

 

Starting rate of tax for savings income 2015-16

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

 

Increase in threshold for Small Companies Regime

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.

Laws for websites in UK

Recently one of my clients asked me about rules and regulations for a website in the UK.

 

I thought it was easy just be truthful about what product and services you sell.

 

But client asked me to check this out for him and to my surprise there are a host of rules and regulations governing e-commerce business.

 

Being an accountant I am no expert on this matter but main items that i found I thought should share with others:

 

1- As customers will be buying service via a website, rules in the link below apply:

It gives detailed information about what customers have to be informed before and after an order.

https://www.gov.uk/online-and-distance-selling-for-businesses/overview

2- Law on Computer Cookies

In simple terms, we must ask consent before installing cookies on their computers.

The link also gives an example and detailed information about this cookie consent.

http://ec.europa.eu/ipg/basics/legal/cookies/index_en.htm

 

3- Advertising rules:

These rules give information about telephone and direct marketing.

https://www.gov.uk/marketing-advertising-law/overview

Main important rules I see among them is telephone marketing and display of price.

 

4 – Data protection:

Organisation which handle personal data need to register , fee is £35 per year.

ico.org.uk

 

I think if a start-ups starts complying with all these rules on day one, it may make the whole project unviable. But every organisation should knows its responsibilities and must have a time bound compliance program as the business grows.