The Enterprise Investment Scheme (or EIS) is a tax incentive that helps companies to raise capital by offering tax relief to individual investors who buy new shares the company. The benefit of EIS to companies is that their shares are more attractive to investors because of the tax relief. Under EIS, the company can raise […]
Tax
Enterprise Investment Scheme (EIS) for Investors
For those investing in new companies, perhaps as part of a Seed investment round, there are a number of tax schemes to make such investment more attractive to investors. One such scheme is the Enterprise Investment Scheme. As part of the EIS, the investor receives income tax relief, personal capital gains tax relief, inheritance tax […]
Contractor Loan Charges and Settlements – When Tax Avoidance Goes Wrong
Sometimes, if something sounds too good to be true, that is often because it is too good to be true. This is definitely the case in contractor off-shore loan schemes, as some contractors are now realising. Even more unfortunately, many contractors are also discovering that the operators and promoters of such schemes have ceased to […]
Comparing Business Structures
When you start a business, there are a variety of different business structures that you can choose. Below is a comparison of the different options. It has to be said that it is rare for a start up to proceed directly to plc Sole Trader/Proprietor Single person in business Who to tell/register with: Notify HMRC […]
Explaining Capital Expenditure, Depreciation and Capital Allowances
When you buy stock or small or everyday things for your business, you can deduct the cost from your income before having to calculate the tax that is due. This is why it is called tax deductible (business) expenses. In your accounts, you might categorise them as stock, materials or office supplies as appropriate… and […]
Director’s Salary and Dividends 2020-21
As we start a new tax year, the question of what directors of their own limited company should pay themselves arises. Since the coronavirus/covid-19 crisis, this has taken on new significance, as directors who are able to furlough themselves can only claim 80% of their PAYE salary through the coronavirus job retention scheme. This is […]