ammu chartered accountants

Paid for a business purchase using your personal card?

The expense is not necessarily lost. What matters is whether the purchase was genuinely for the business and whether you have kept a clear record.

Save the receipt or invoice, note what the purchase was for and make sure any money repaid to you is recorded properly.

The accounting treatment will differ depending on whether you run a limited company or work as a sole trader, but the same simple habit helps in both cases: record it while the details are still fresh.

Have you ever found a business receipt months after making the purchase?

how much of your business cash is actually available to spend?
There may be money in the business account, but that does not mean all of it is available to spend.

Before investing in equipment, staff or new systems, it is worth allowing for upcoming tax bills, payroll, suppliers and regular running costs. Quieter months and late customer payments should also be part of the calculation.

Using your own funds can be a sensible way to grow without borrowing. The important thing is knowing what the business can comfortably spend while still meeting its commitments.

Are you looking at the current bank balance, or what will be left after the next few months of costs?

A limited company can earn very little and still have accounts and tax responsibilities to deal with.

That can make professional fees feel difficult to justify, especially in the first year.

Doing it yourself may work where the company is genuinely straightforward. Before choosing the lowest-cost option, make sure you understand what needs filed and that your records support the figures.

Low turnover does not always mean a simple filing position.

Without a workplace pension, saving for retirement can easily slip down the list when you are self-employed.

Sole traders can pay into a personal pension and usually receive tax relief. With many schemes, paying £80 into the pension means £100 is invested after the provider claims basic-rate relief from HMRC.

These payments are not normally deducted as an everyday business expense. They are personal contributions, and the tax benefit works differently.

The important part is finding a contribution that fits alongside tax bills, business costs and accessible emergency savings. Even a regular, manageable amount can be a useful place to start.

Has pension saving found a place in your financial plans yet?

Crowdfunding can be a helpful way to raise money for a new business idea, product or project.

But once the money arrives, it is worth checking how it should be treated.

The answer depends on what the money is for, and what supporters receive in return. If someone gives freely and receives nothing meaningful back, that may be different from a normal sale. But if they receive a product, service, early access or reward, the position may change.

Loans and investment funding are different again.

Before spending or relying on crowdfunded money, make sure it is recorded properly in your accounts.

Have you received funding for your business and you are not sure how it should be treated?

A company car can be a helpful work benefit, but it is not always “free” from a tax point of view.

If the car is available for private use, it will usually count as a taxable benefit. The tax cost can depend on things like the car’s list price, emissions, fuel type, electric range and any contribution made by the employee.

The tax may be dealt with through payroll or through the employee’s tax code. Employers may also have reporting responsibilities, including P11D or payroll reporting and Class 1A National Insurance.

Before choosing a company car, it is worth checking what the figures actually mean and how they may affect take-home pay.

Are you clear on how your company car benefit is being treated for tax?

If you have a limited company that is no longer trading, it can be tempting to leave it sitting there and deal with it later.

But a dormant or unused company can still come with responsibilities while it remains registered.

You may still need to file accounts and confirmation statements, keep company details up to date, and deal with any tax or HMRC matters. Companies House identity verification is also now being phased in, so it is worth checking what applies to you.

Closing a company may be the right option, but it is best to make sure everything is in order first.

Do you have a company you no longer use but have not formally closed yet?

When an IHT return is being prepared, the property value needs to be realistic and properly supported.

HMRC challenged more property valuations over the past year, and where a value is understated the estate could face extra IHT, late payment interest and possibly penalties.

That is why a rough estimate may not be enough. Executors should be able to show how the property value was reached before the return is submitted.

In our latest blog, we explain what to look at and when extra valuation support may be worth getting.
https://ammu.uk/iht-property-valuations-for-estates/

Would you know how to support the property value used in an IHT return?

It is easy to assume that once your company accounts have been filed, everything for the year has been dealt with.

But Companies House and HMRC are not the same.

A limited company may file its accounts with Companies House and still need to submit a Company Tax Return to HMRC. That is often where confusion happens, especially if a Corporation Tax penalty arrives later.

Before panicking, check what the penalty actually relates to. Was the CT600 submitted? Was Corporation Tax paid if due? Were the Companies House accounts filed, but not the HMRC return?

Keeping these deadlines separate can save a lot of stress later.

Do you have a clear system for tracking both Companies House and HMRC deadlines?

Recent tax changes are affecting more than just HMRC receipts.

Higher CGT rates can make asset sales more expensive. Higher employer NICs can add pressure to staffing costs. Frozen thresholds are also continuing to pull more people into higher tax bands.

For business owners, landlords, employers and higher earners, that can feed into decisions about disposals, staffing, business structure and longer-term planning.

Our latest blog looks at the practical impact of these changes and why reviewing the position early can still make a difference.
https://ammu.uk/cgt-and-nic-increases-explained/

Have recent tax changes affected any of your plans?