My business is making losses- Will I be better off if I incorporate my business?
My business is making losses Will I be better off if I incorporate my business? If you have extra funds and you are looking for some investment you should definitely consider investing in the buy to let property. Buy to let property is the property which is bought with the intention to rent. Buy to let property can be bought on cash and other buy to let mortgages. Investing in BTL property would mean that you will get the monthly rent from the tenant and you can also make profit from the sale of the property when the property prices increase. According to Right move, after the lockdown, the demand in the rental property has increased. The demand is 22 percent more at this time than it was last year. What would be tax implications in buying the property for buy to let? If you are thinking of investing in BTL properties you will be dealing with the following taxes. If we understand the above taxes we can plan ahead and reduce the risks. We at Taxaccolega have an in house property expert team and we can help you advice on the above taxes so you can make a more informed decision. Some of the challenges that are faced by the BTL landlords: Mortgage tax Relief: Previously the interest payment on the mortgage could be deducted as an expense from the rental income thereby reducing the taxable income which in turn reduces the income on the rent. However, from April 2020 the mortgage interest cannot be deducted as an expense which can increase the tax paid on the rental income. Capital Gains Tax: You will have to pay capital gains tax when you decide to sell your Buy to let property, you should always consider this as a cost which will reduce your profits. We are advising our clients to purchase a Buy to let property through a limited company. If you are holding a property through a limited company you can reduce the tax bills as the companies can deduct the interest on the mortgage as an expense and therefore reduce the tax bills. If you renting a property through a limited company you will pay the corporation tax on the rental income which you receive, whereas if you are renting a property you will be paying tax on the income tax which is higher than the corporation tax. However, every situation is different and buying a property is a long term investment, you should be well aware of all the reliefs and options available to you in order to make maximum gain. If you need a professional advice, please do not hesitate to contact Taxaccolega at 020 8127 0728 and we can do all the calculations for you and help you make a decision based on real numbers. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Do I get any relief if I am a SME and am starting a new business due to covid?
Do I get any relief if I am a SME and I am starting a new business due to covid? There are many businesses who are planning to develop new products due to Covid-19 so they can remain competitive in the market. This is because the businesses are either facing a slump in the demand and therefore profitability. Many cash generating schemes are available to the SMEs, however all such businesses who are planning to develop and introduce new products in the market to remain competitive can claim R&D tax credit relief. It does not matter which sector you work in, if you are limited company and have carried qualifying research and development activities. To qualify who must have actually spent money on these qualifying R & D projects and you are able to prove it. What is R&D Relief? The Research and Development expenditure is increased to 13% from 1 April 2020. This mean that the companies can deduct 130% of their qualifying costs from their yearly profit in addition to the normal 100% to make a total of 230%. What costs can I claim? Following are some of the costs which you can claim under R&D relief. This will provide you with the funding and reduce your tax bill: Employee Costs: This will include Salary, NI contributions, and pension contributions of all those employees who are working directly with the project. If you have hired a subcontractor to work on the project you can claim 65% of the relevant costs. Materials: You can claim for the materials which you use for the project. Cost of land, Capital expenditure, the costs associated with the distribution of the product cannot be claimed under the relief. How to claim for the relief? You can claim the relief for upto 2 years after the end of the accounting period in which the project was started. Don’t forget to note the start and the end date of the project. You can claim for the relief in CT 600 with appropriate calculations Our expert team at Taxaccolega will make sure that your company`s R&D claims can deliver maximum value to you. Our tax specialist can work directly with your finance team so that you can carry out the business most efficiently. Please contact Taxaccolega at 02081270728. If you have any queries please fill in this form https://www.taxaccolega.co.uk/contact-us CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Is Buy-to-Let Worth It in the UK? 2025 Investment Guide
Is Buy to Let Worth It in the UK? 2025 Investment Guide If you have extra funds and you are looking for some investment you should definitely consider investing in the buy to let property. Buy to let property is the property which is bought with the intention to rent. Buy to let property can be bought on cash and other buy to let mortgages. Investing in BTL property would mean that you will get the monthly rent from the tenant and you can also make profit from the sale of the property when the property prices increase. According to Right move, after the lockdown, the demand in the rental property has increased. The demand is 22 percent more at this time than it was last year. What would be tax implications in buying the property for buy to let? If you are thinking of investing in BTL properties you will be dealing with the following taxes. If we understand the above taxes we can plan ahead and reduce the risks. We at Taxaccolega have an in house property expert team and we can help you advice on the above taxes so you can make a more informed decision. Some of the challenges that are faced by the BTL landlords: Mortgage tax Relief: Previously the interest payment on the mortgage could be deducted as an expense from the rental income thereby reducing the taxable income which in turn reduces the income on the rent. However, from April 2020 the mortgage interest cannot be deducted as an expense which can increase the tax paid on the rental income. Capital Gains Tax: You will have to pay capital gains tax when you decide to sell your Buy to let property, you should always consider this as a cost which will reduce your profits. We are advising our clients to purchase a Buy to let property through a limited company. If you are holding a property through a limited company you can reduce the tax bills as the companies can deduct the interest on the mortgage as an expense and therefore reduce the tax bills. If you renting a property through a limited company you will pay the corporation tax on the rental income which you receive, whereas if you are renting a property you will be paying tax on the income tax which is higher than the corporation tax. However, every situation is different and buying a property is a long term investment, you should be well aware of all the reliefs and options available to you in order to make maximum gain. If you need a professional advice, please do not hesitate to contact Taxaccolega at 020 8127 0728 and we can do all the calculations for you and help you make a decision based on real numbers. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Setting up a Charity – 6 things you need to know
Setting up a Charity 6 things you need to know How is my charity different from any incorporated company? The main difference between a charity and a corporate entity lies in its purpose . The Purpose The purpose of an incorporated entity is to make profit while the purpose of a charitable company is to benefit the public. This means it has charitable purposes and it the main objective of such an entity is not to make or maximize the profits. The charitable purposes as defined by gov include things that contribute to: ● Relieving poverty ● Education ● Religion ● Health ● Saving lives ● Human rights ● Religious harmony ● Animal protection ● Protection of the environment Appointing a Trustee If you want to run a company you need to appoint the trustees. You will need at least 3 trustee to run the charity. They will use their skills, knowledge and the industry experience to run the charity. They will also play a major role when it comes to recruiting new senior staff. HMRC provides complete guidance on how to recruit trustee for the charity. The structure: You will have to chose a structure for your charity which will affect the way you will run the charity, who will run the charity and what the charity will do. You can chose from the 4 charity structures: 1. Charitable company 2. Charitable incorporated organization 3. Charitable trust Unincorporated charitable organization. These structures are briefly explained below: Charitable Company: The charitable company will have to be limited by guarantees rather than shares when you register. You will have to register the charitable company with the companies house. Trustees have limited or no liability for a charitable company’s debts or liabilities. Charitable Incorporated Organisation: A CIO is an incorporated structured design for charities. You need to register with Charity commission rather than companies house. Trustees have limited or no liability for CIO debts or liabilities. Charitable trust A charitable trust is a way a group of people who are actually the trustees to manage assets such as money, investments, land or building. Unincorporated Charitable Association This is the simplest way to run the charity. A group of people come together to run the charity for the common purpose. Unincorporated charitable associations cant employ staff or own premises. Income Once you have defined the purpose of your charity , and decided on the structure you need to register yourself with the company’s house. You will have to register yourself if it’s income is at least £5000 or if it’s a charitable incorporated organization. Whereas if you are planning to set up a limited company you have to register it irrespective of any income. Will I have to pay any taxes? If you are running a charity you will have to pay taxes if : ● You have received income that does not qualify for the tax relief ● Spent any of your income on non-charitable purposes. How will my charity pay taxes? You will have to complete a company tax return if your charity is a ● Limited company ● Unincorporated organisation You will also submit an annual return to the charity commission if the charity’s income is above £10 000. There are certain tax reliefs available. To find out more on the charity taxes and the tax reliefs available call Taxaccolega accountants in Croydon and our experienced accountants will be happy to help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs.