SEIS and EIS tax relief London
SEIS and EIS tax relief London SEIS and EIS tax relief London Taxaccolega, London-based accounting firm is dedicated to giving our clients the most recent details on tax relief programs that can help them with their investment plans and business expansion. The Enterprise Investment Scheme London(EIS) and the Seed Enterprise Investment Scheme Croydon (SEIS) are two such programs that provide investors in early-stage businesses with attractive tax incentives. SEIS and EIS tax relief London?Seed Enterprise Investment Scheme Croydon (SEIS) is designed to help small, early-stage businesses raise equity finance by offering tax reliefs to individual investors who buy new shares in those companies.EIS investment scheme London, in contrast, provides tax relief to investors by making it easier for larger businesses to invest in businesses that are engaged in qualifying trades. SEIS vs EIS Comparison UK: Key PointsOur SEIS vs EIS tax relief and SEIS vs EIS comparison UK guide highlights the SEIS vs EIS eligibility criteria London and investment thresholds, helping investors weigh the tax advantages of SEIS vs EIS. Feature SEIS (2025/26) Target Company Stage Very early-stage (up to 3 years trading) Employee limit 25 employees Maximum Investment by Company £250,000 Gross assets limit £350,000 Maximum Investment per Investor £100,000 per tax year Income Tax Relief 50% Investor Eligibility Individual UK taxpayers only Advance Assurance Available Investment type Full-risk ordinary shares Capital Gains Reinvestment Relief Exempts 50% of a gain if reinvested into SEIS shares Capital Gains Disposal Relief No CGT on gains from SEIS shares held 3+ years Loss Relief Offset losses against income or gains Inheritance Tax (IHT) Relief 100% exemption(Share must held for at least 2 years) Feature EIS (2025/26) Target Company Stage Early to mid-stage (up to 7 years trading) Employee limit 250 employees Maximum Investment by Company £12 million Gross assets limit £15 million Maximum Investment per Investor £5 million per tax year Income Tax Relief 30% Investor Eligibility Individual and corporate UK taxpayers Advance Assurance Available Investment type Full-risk ordinary shares Capital Gains Disposal Relief No CGT on gains from EIS shares held 3+ years Loss Relief Losses on EIS shares can be offset against gains or income. Inheritance Tax (IHT) Relief 100% exemption(Share must held for at least 2 years) How This Affects Your Business Some businesses will benefit from the higher Employment Allowance. But for many, the increase in NICs will lead to: Increased Payroll Expenses What does this signify? Every employee in your company will now receive a higher NIC payment, particularly if they make more than £5,000 annually. Your company will need to pay more for wages and salaries as a result of the NIC rate increase from 13.8% to 15%. For instance, your payroll expenses may increase affectedly if you employ a large number of people or minimum wage workers. Lower profits What does this signify? Your company will make less money since it is spending more on NICs (and possibly other growing expenses). This implies that after all costs (such as salaries, bills, and taxes) are covered, you have less money. For instance, your profit margin—the amount of money left over after expenses—will decrease even if your revenue remains constant. This is because you will have to pay more in NICs and other expenses. Less cash available for growth or hiring What does this mean? Your company can have less money to invest in expansion or hiring additional staff if expense is higher and profit is lower. This might restrict your company from expanding, creating new avenues, or having more work. For instance, if your expenses are increasing, you may opt to postpone the recruitment of more staff, the purchase of new machinery, or the establishment of a new branch in a bid to budget for the increased NIC costs. Greater Effect on Bigger Teams The impact of these changes will be even greater if you have a large workforce. Each person will pay a higher NIC, which could result in numerous additional expenses. For instance, one business disclosed that the increase in NICs will result in a £400,000 increase in staff expenses the following year. As a result, they may need to lay off 20 workers in order to cover the additional expenses. Strategies for managing higher NIC costs You don’t have to panic. There are steps you can take to save costs and keep your business strong. Here are some suggestions: 1. Check if you can claim the new Employment Allowance The Employment Allowance allows small businesses to save their NIC bill by up to 10,500 a year. Example: If you hire 3 employees, this allowance might cover most or all of your NICs for them! We can help you on employer NIC solutions at Taxaccolega work out whether you qualify and claim the employment allowance to reduce your NIC payment. 2. Use salary sacrifice This means employees can exchange part of their salary for things like pension contributions. This reduces your NICs. For instance, you can save £300 in NICs (15% of £2,000) if an employee agrees to take £2,000 less in salary and you put it into their pension. To maximise your NICs and employee benefits, our skilled accountants at Taxaccolega can help you set up a salary sacrifice plan. 3. Use freelancers or self-employed workers Think about using contractors or freelancers rather than full-time employees. Employer NICs are typically less expensive. For instance, it may be less expensive to hire a freelancer rather than hire a full-time staff member if you need assistance with a project. 4. Outsource where possible Consider outsourcing jobs like payroll, marketing, or HR to reduce permanent staff costs. Example: By outsourcing your payroll processing to experts like Taxaccolega, you can reduce the cost of hiring full-time staff and improve your efficiency. Our team at Taxaccolega provides professional outsourcing services, helping you streamline operations and reduce costs. 5. Let more staff work from home If more people work remotely, you may be able to rent a smaller office and save money. Example: With more staff working
Selling Property -can I claim Entrepreneurs Relief on its disposal?
Selling Property -can I claim Entrepreneurs Relief on its disposal? If you are selling property which is furnished and used for commercial purposes, you have a good news. You can get entrepreneur’s relief and save money on taxes. This means that the basic tax rate payer and the those paying their income tax at higher rate will be paying CGT at 10 % instead of 28%. The announcement by Rishi Sunak that the CGT will remain at the same rate is seen as a relief for all those who are letting their rental properties and many property owners who were expecting that they will have to bear a high CGT on the sale are now analysing if they should sell the property now. So if your property qualifies for furnished holiday lettings make sure that you utilise the reliefs available. The reliefs available are entrepreneurs relief, business asset roll over relief and the gift relief. To be eligible for all the CGT reliefs the property should meet the following criteria: To be eligible for Entrepreneur’s relief both of the following must apply: If both the above conditions apply, you will be able to pay the CGT at the reduced rate of 10 %. If you are own more than one FHL and you are selling one of the properties you will have to consult and accountant whether the relief will apply to you or not as might not be treated as the business disposal. HOW DOES IT WORK ? Step 1: Work out the gain from the property disposal Step 2: If you are selling more than one property combine all the gains Step 3:Deduct the annual capital gains tax allowance £12, 300 Step 4: You will be paying 10% on what is left. Your property is stop being treated as FHL if it is used for the private use. If you have more than one property in the UK it will be treated as one business for FHL purposes. If you are looking for a property accountant contact Taxaccolega at 020 8127 0728. We are affordable accountants based in Croydon and South hall and our expert team will help you with all your taxes if you are buying or selling property or even If you are already in the property business and you want accountant to make rental accounts. Source: www.gov.uk
How to do Amazon accounting?
How to do Amazon Accounting? When you start your e-commerce business as an Amazon seller you should be confident enough with the way you will do it’s accounting. Staying on top of your accounting record means that you are less likely to miss your accounting and tax deadlines and therefore less likely to incur any penalties. If you have an amazon seller account, amazon will prepare the summary of your income and expenses, you need to get used to all the terms so you can calculate the profits accurately and also understand how you are doing in your business. To make your annual accounts and calculate your profits you can do your amazon accounting on the excel sheets or you can choose an accounting software as well. If you chose to do the accounting yourself or you chose to hire an accountant in either case you should know exactly how your profits will be calculated. The key to accounting is understanding and recording the following: Make sure you keep the evidence for all your expenses as well as the income from the sales. The money coming in: The money coming in is the income from the sale proceeds. When selling on amazon through FBA you might have income in different currencies. Although you can get a summary of the incomes from different countries separately you will have to combine all the incomes to calculate your taxable profits. The money going out- Your costs: The money going out will include the startup costs which will be one off costs and also the ongoing costs, Startup costs will include the costs of samples, photography and everything else elated to the launch of your product. Ongoing costs: product cost, shipping, fba fees Choose an accounting software It is important that you choose the right accounting software for all the book keeping of your Amazon business. There are certain accounting softwares which will allow you to download the summary of your sales and expenses in your excel sheets. This is going to save you a lot of your time and this minimizes the chances of error as well. On the other hand you can make your own template to record the data, make your accounts and calculate profits by simply downloading the sales and expenses data from amazon. How to Download the reports : Look at the following steps which will help you download your annual sales report You just have to The report will show the summary of your income and your expenses which will also include your Amazon fees, shipping costs etc There will be a transfers section which will show how much money Amazon transferred to you annually or monthly depending on what period the summary is for. You can extract your income and calculate the net sales value by subtracting the reimbursements , expenses , operating expenses which includes amazon referral fees, put them in your template and calculate your taxable profits. If you want to consult an accountant for your ecommerce business contact Taxaccolega e commerce accountants and our team of accountants will be happy to help you.
4 ways to reduce CGT when selling your property
4 ways to reduce CGT when selling your property When you are selling your property you just do not want to get rid of it, you want to maximize your profits and at the same time you want to minimize the taxes you pay on them. CGT is the capital gains tax which you pay on your property which is not your main home. You will pay CGT if you own a property which is not your main home and you bought with the intention of selling it and or you have rented the property. If you are a landlord owning one or more properties and you have incorporated your business then you don’t pay CGT on the gains instead you pay corporation tax on it. But if you have rented your property and you are paying income tax on the rental income, you will be paying capital gains tax on all the gains you will make as a result of the sales. IF your annual income falls in the basic rate band you will be paying income tax 20% and CGT at 18% on the residential property and if your income falls in the higher rate tax band your income tax will be 40% and the CGT will be 28%. Make sure that you keep in mind that you will have to pay these taxes and calculate the cash that will be left with you after paying these taxes so that you don’t run out of cash if you plan to make any investments or you have to pay some bills. Look at the following ways in which you can save some money by reducing your tax bills: 1. Making use of your CGT annual allowance:you In the tax year 2022-2023 every individual is given a tax free CGT allowance of £12 300. This means that you can make a gain on your chargeable assets without paying any taxes on it. This allowance cannot be carried forward, so it is wise to use it every year and make tax free sales. If you have already used this allowance in a particular year it would be wise to delay the sales to the next year so you can make use of the allowance. 2. Share the property with your spouse: If you own the property jointly with your spouse this can double your tax free CGT allowance. This means that when you sell the property you can make a gain of £24 600 without having to pay CGT on it. If you don’t have joint ownership of the property with your spouse you can transfer all or part of the property to your spouse. You don’t pay any CGT on the transfer of your property to the spouse. 3. Transfer the property to your spouse: You can transfer the property to your spouse if your spouse falls in the lower income tax band, this way you can pay CGT at the lower rate on the sale of the property 4. Deduct your costs: When you are calculating the chargeable gain don’t forget to deduct all the costs incurred. You should deduct all the legal costs that were incurred when buying and selling the property, the stamp duty land tax that you paid when you were buying the property and the costs incurred that increased the value of the property, If you want a property tax accountant, please don’t hesitate to contact Taxaccolega. We are accountants in croydon and can do your income tax, corporation tax, inheritance tax. Call us at 020 8127 0728
