Tax Saving for Directors Made Simple
The Indispensable How To Guide
A Tips & Advice book about...
In a nutshell
This straightforward guide explains how to take care of your tax responsibilities as a director easily and safely, always with one clear goal in mind: to save you time and money. Whether it's to file your VAT return online or claim a corporation tax deduction, this book will show you the correct way to do it.
Running your own company means getting involved in a wide range of tax issues. You need to be up to speed with the current tax rules and be able to put them into practice. This book will help you handle day-to-day and more complex tax procedures. It explains how to:
- Make the best use of HMRC's many online services
- Claim tax reliefs in the right way and at the right time
- Enter information correctly on your personal and business tax returns
- Make various tax-saving elections
Plus, we've included a stack of ready-to-use elections and draft letters to speed up the process and make your life even easier.
We've created this Tips & Advice book especially for...
Company directors that want to:
- Handle their tax affairs in an efficient and legally secure way
- Cut their tax bill
- Save time
Tax advisors that want to:
- Help their clients handle their tax affairs in the most advantageous ways
You'll get the following free extras with this Tips & Advice Book...
An online service with ready-to-use documents
- To immediately apply our advice and solutions in practice
- That you can easily adapt to suit your own requirements
In this Tips & Advice book you'll read about...
Chapter 1 - HMRC online services
1. How to sign up to HMRC online services for the first time
1.1. Where do you start?
1.2. Completing HMRC online registration and enrolment
1.3. Starting to use HMRC services for the first time
1.4. Signing in
2. How to obtain a new activation code for HMRC’s online services
2.1. What are activation codes?
2.2. Lost or expired activation code
2.3. Obtain a new activation code
3. How to add a new HMRC online service to your company’s registration
3.1. Procedure for adding services
4. How to sign up and use HMRC’s Business Tax Account
4.1. Who can use HMRC’s Business Tax Account?
Chapter 2 - Dividends, salary, benefits and employment expenses
1. How to pay a director’s bonus
1.1. Bonus procedure
1.2. Tax position
2. How to claim a tax deduction for business expenses
2.1. Who can claim?
3. How to elect for the alternative method of calculation of a beneficial loan
3.1. Election for the precise method
3.2. HMRC override
4. How to create a salary sacrifice arrangement
4.3. HMRC clearance
5. How to keep a mileage record
5.1. Recommended information to include
5.2. Other information that would be useful
6. How to pay an interim dividend
6.2. When is an interim dividend paid for tax purposes?
7. How to pay a final dividend
7.2. When is a final dividend paid for tax purposes?
8. How to waive a dividend
8.1. Procedure for waiving
8.2. Tax consequences
9. How to report a beneficial loan for directors and employees
9.1. Reporting requirements
9.2. What to report
Chapter 3 - PAYE and payroll and construction industry schemes
1. How to register your company as an employer for PAYE
1.1. Registration process
1.2. Information needed
2. How to register as a CIS contractor
2.1. Registration procedure
3. How to set up PAYE basic tools
3.1. Procedure to download and set-up
4. How to set up a new employee without a P45
5. How to set up a new employee with a P45
6. How to make an RTI report without an NI number
6.1. Procedure if you don’t know an NI number
7. How to make PAYE, CIS and NI deductions
7.1. When is this payable to HMRC?
7.2. Payment procedure
8. How to pay HMRC advisory benchmark allowances for UK subsistence
8.2. Who can use benchmark expenses rates?
8.3. Are declarations required for HMRC?
9. How to pay scale rate expenses for overseas travel and subsistence
9.1. What’s the procedure?
9.2. Who can use scale rate expenses?
9.3. What evidence do employees need to produce?
9.4. Do scale expenses have to be entered on P11Ds?
9.5. How do you calculate how much you can pay?
10. How to pay personal incidental overnight expenses relating to business travel
10.1. Reimbursing incidental expenses
11. How to make a tax and NI-free advance of expenses
11.1. Procedure and conditions
12. How to pay HMRC’s approved flat rate use-of-home allowance
12.1. Conditions and procedure
13. How to report expenses and benefits for directors and Pay Class 1A NI
13.1. Reporting procedure
13.2. Declaration and Class 1A report
14. How to reclaim overpaid NI
14.1. Claim or checking procedure
15. How to apply the annual earnings period for directors
15.1. Calculation procedure
15.2. The standard annual earnings period
15.3. The alternative method
15.4. RTI requirements
Chapter 4 - VAT
1. How to register for VAT online
1.1. Registration options
2. How to register for VAT offline
2.1. Registration process
3. How to update your company’s VAT records with HMRC
3.1. Notification options
4. How to change your company’s VAT status
4.1. Change of legal entity
5. How to apply for group VAT registration
5.1. Application procedure
5.2. More information
6. How to apply for divisional VAT registration
6.1. Application procedure
6.2. More information
7. How to apply to use the VAT flat rate scheme
7.1. Application procedure
7.2. More information
8. How to opt out of the VAT flat rate scheme
8.1. Procedure to opt out
9. How to join the VAT cash accounting scheme
9.1. Procedure to join
10. How to use a VAT retail scheme
10.1. Joining a retail scheme
10.2. Leaving a retail scheme
10.3. Point of sale scheme
10.4. Apportionment schemes
10.5. Direct calculation schemes
10.6. Sector-specific schemes
10.7. Bespoke schemes
11. How to adopt the VAT annual accounting scheme
11.1. Procedure for opting
11.2. More information
12. How to adopt a special method for VAT partial exemption
12.2. More information
13. How to opt to tax a property (make rent etc. liable to VAT)
14. How to withdraw the option to tax
14.1. Procedure - within six months of making the option
14.2. Procedure - after the option has been in place for 20 years
15. How to use the VAT flat rate fuel charge
15.1. Applying the flat rate
Chapter 5 - Corporation tax
1. How to register a company with HMRC
1.1. Notification procedure
2. How to notify HMRC that your company is dormant
2.1. Notification procedure
3. How to notify HMRC that your company is active
3.1. Notification procedure
4. How to file company accounts with HMRC
4.1. Filing company accounts options
4.2. Before you can file corporation tax returns
5. How to amend a corporation tax return
5.1. Amendment procedure
6. How to claim trading losses against trading income in later years
6.1. Claim procedure
7. How to claim pre-incorporation losses against company income
7.1. Claim procedure
8. How to claim a deduction for pre-trading expenses
8.1. Procedure for claiming
9. How to claim trading losses against current year’s income
9.1. Claim procedure
10. How to claim trading losses against total income of earlier years
10.1. Claim procedure
11. How to claim losses when a business ceases - terminal loss relief
11.1. Claim procedure
12. How to claim group relief for losses
12.1. How to claim group relief
Chapter 6 - Capital allowances
1. How to make a short-life asset election
1.1. Conditions and procedure
2. How to claim the annual investment allowance (AIA)
3. How to elect for capital allowances on equipment fixed to buildings
4. How to elect to use tax written down values on transfer of a business
Chapter 7 - Directors’ personal tax
1. How to register for self-assessment as a director
1.1. Registration process
1.2. What next?
2. How to amend your tax code
3. How to claim higher rate relief for pension contributions
3.1. Occupational pension scheme contributions
3.2. Personal pension plan contributions
3.3. Retirement annuity contracts
4. How to reduce your self-assessment payments on account
5. How to claim an income tax refund
5.1. Claim process
5.2. How to get refunds repaid
6. How to claim tax relief for homeworking expenses
7. How to claim interest on a business loan
7.1. Claiming the interest
7.2. Making a claim before the tax year has ended
7.3. Making a claim after the tax year has ended
7.4. Other conditions
8. How to defer Class 1 NI contributions
8.1. Deferment procedure
8.2. Information required
8.3. What happens next year?
9. How to use unused pensions tax allowance from earlier years
9.1. Claiming unused pensions allowance from earlier years
10. How to declare and pay a pensions annual allowance charge
10.1. Payment procedure
10.2. Calculating the charge
11. How to elect to be taxed on joint income
12. How to claim enterprise investment scheme (EIS) relief
13. How to carry back tax relief for the EIS
13.1. Procedure for EIS shares issued in 2022/23
13.2. Procedure for EIS shares issued in 2021/22
14. How to claim seed enterprise investment scheme (SEIS) relief
15. How to carry back tax relief for the SEIS
15.1. Procedure for SEIS shares issued in 2022/23
15.2. Procedure for SEIS shares issued in 2021/22
Chapter 8 - Buying and selling a business
1. How to claim business asset disposal relief
1.1. Procedure for claiming relief
2. How to claim negligible value CGT relief for your company’s shares
2.1. What is a negligible value claim?
2.2. Who can claim?
2.3. What are the time limits?
2.4. Form of claim
2.5. Claim for an earlier year
2.6. Claim for current tax year
3. How to claim income tax relief for a capital loss
4. How to elect for BADR to apply to qualifying corporate bonds
5. How to defer (holdover) a capital gain on the transfer of shares in a company
6. How to roll over a capital gain following the sale of business assets
Chapter 9 - Other claims and procedures
1. How to create a loan agreement with a director
2. How to challenge an HMRC assessment ruling or decision for direct tax
2.1. Appealing against a decision or assessment
2.2. Appeal procedure
2.3. How are appeals settled?
2.4. More information
3. How to challenge an HMRC assessment ruling or decision for indirect tax
3.1. Appealing against a decision or assessment
3.2. Alternative first step before making an appeal to the First-tier Tribunal
3.3. The review process
3.4. Important note
3.5. More information
4. How to complain about HMRC’s services
4.1. Complaints process
4.3. Parliamentary Ombudsman
4.4. Financial compensation
5. How to obtain clearance for a transaction from HMRC
6. How to postpone payment of tax relating to an HMRC assessment or decision
7. How to pay tax bills without a payslip
7.1. Corporation tax
7.2. Multiple payments by CHAPS
7.4. VAT MOSS
7.5. PAYE tax and NI payments
8. How to apply to use HMRC’s alternative dispute resolution (ADR) process
8.1. Who can use ADR?
8.2. Application process
8.3. Is ADR right for you?
8.4. Agreeing to the process
8.5. What effect does ADR have on your dispute with HMRC?
9. How to appeal to the First-tier Tribunal
9.1. To access the FTT
9.2. How do you present a case?
9.3. What documents should you have at a hearing?
9.4. Must you be represented?
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