ammu chartered accountants

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?

When a business starts growing, VAT registration can sometimes come up sooner than expected.

It is easy to think of it as an admin task, but it can also affect your pricing, margins and cash flow. If your business sells mainly to private customers, the impact can feel more noticeable because those customers usually cannot reclaim VAT.

That is why it helps to review your pricing before you reach the threshold.

Looking at your turnover, margins, future quotes and customer base early gives you more room to plan properly. It can also help you avoid having to make rushed pricing decisions once registration becomes urgent.

If your business is getting closer to the VAT threshold, it may be worth getting advice before you cross it.

Are your prices set up for the next stage of growth?

Close company reporting is becoming more detailed from the 2025/26 tax year, and that could mean closer HMRC checks for some directors.

Self-assessment tax returns will need to include more information for each close company directorship, including details such as dividend income and shareholding. This can apply even where no salary or dividends were taken.

In practical terms, that means clear and consistent records matter. Dividend history, loan account movements and shareholding details should all be easy to trace.

We explain the key changes in our latest blog.
https://ammu.uk/close-company-reporting-for-directors/
Would your records be ready for closer scrutiny?