Genius Accountancy

💡 Trivial Benefits for Limited Companies: Reward Your Team Tax-Free! 🎁
As a director or employee of a limited company, you receive small, non-cash perks without incurring tax or National Insurance liabilities, thanks to trivial benefits.

✅ What qualifies as a trivial benefit?
To be exempt from tax and National Insurance, a benefit must meet all of the following criteria:
• Cost: £50 or less per benefit
• Form: Non-cash (e.g. no cash or cash vouchers)
• Frequency: Provided occasionally, not as a contractual entitlement
• Purpose: Not a reward for work or performance

🎁 Examples include:
🍫 Chocolates or sweets
🌹 Flowers for birthdays or work anniversaries
🎟 Tickets to a show or sports event
☕ Coffee vouchers

⚠️ Important for directors of close companies:
If you're a director of a 'close company' (one with 5 or fewer shareholders), the total value of trivial benefits you can receive is capped at £300 per tax year. This limit applies to the combined value of all trivial benefits provided to you, not per benefit.

📚 Learn more:
For detailed guidance, see HMRC Trivial Benefits Guidance. https://www.gov.uk/expenses-and-benefits-trivial-benefits

🏢 Share Classes Explained for Small Limited Companies

When you set up a limited company, one of the biggest decisions is: who gets what. That’s where share classes come in.

📌 What are share classes?
They define rights and rewards for shareholders, like voting power, dividends 💷, and what happens if the company winds up.

⚖️ Common types:
🔹 Ordinary Shares: full voting rights + dividends in proportion to ownership.
🔹 Non-Voting Shares: raise cash without giving up control.
🔹 Preference Shares: fixed dividends, priority on payout.
🔹 Alphabet Shares (A, B, C, etc.): flexibility to pay different dividends to different people.

📖 Quick Example
Two founders:
• Alex runs the business daily.
• Sam invests but is less involved.

💡 By issuing A Shares to Alex and B Shares to Sam, the company can:
• Pay Alex higher dividends to reflect effort.
• Still reward Sam fairly.
• Keep both as shareholders ✅

🚀 Why it matters
Share classes let small businesses:
• Balance control vs. investment.
• Reward shareholders differently.
• Plan for the future (succession, employees, investors).

💬 Final Thought
The right share structure isn’t just a matter of legal administration; it shapes your control, income, and growth strategy.

👉 Have you structured your company with different share classes? Or stuck with just ordinary shares?

Call now to connect with business.

🗓️ Important Reminder for Self-Employed & Side Hustlers!

If you file a Self Assessment tax return in the UK, don't forget that your second Payment on Account is due by 31st July 2025.

This is an advance payment towards your 2024/25 tax bill and it's usually 50% of last year's bill (excluding things like Capital Gains Tax and Student Loans).

💥What happens if you don't pay on time?
You’ll get charged interest
May face penalties from HMRC
And it could cause a cash flow crunch come January.

💡Expecting a lower income this year?
You can ask HMRC to reduce your payment, just be careful not to underestimate, or you could owe interest later.

✅ How to pay:
Visit 👉 https://www.gov.uk/pay-self-assessment-tax-bill
Use your UTR number as a reference and pay online, by bank transfer or through your HMRC account.

📌 Quick Tips:
Set a phone reminder in time for the payment deadline
Check your HMRC online account to see what’s due
Keep proof of payment

Let’s avoid any last-minute tax panic! 🙌
Got questions or need help? Drop a comment or DM us.

Pay your Self Assessment tax bill Payment options for your Self Assessment tax bill - Direct Debit, bank transfer, through your tax code, debit or credit card, cheque and pay weekly or monthly

🚗💼 Running a Limited Company? Don’t Miss Out on Reclaiming Your Travel Costs! ✈️

If you travel for work through your limited company, you might be able to claim back business travel expenses and reduce your company’s tax bill at the same time! 🙌

You can claim for:
✅ Business mileage (45p per mile for the first 10,000 miles)
✅ Public transport – trains, buses, taxis
✅ Hotel stays when you’re working away
✅ Meals and drinks while you’re out on business
✅ Parking, tolls, and more!

📌 Important: Travel must be 100% for business, not your usual commute. And don’t forget to keep receipts and mileage logs to back up your claims.

Need help making sure you're claiming the right things? Drop us a message or comment below, we'd be happy to help! 😊

📢 What is a PSC and why should you care?

If you run a UK company or are thinking about starting one, you need to know what a PSC is.

A PSC is a Person with Significant Control, someone who ultimately owns or controls your company.

🔎 Why does this matter?
Because UK law requires ALL companies to record their PSCs and submit this info to Companies House.

So, who counts as a PSC?

👤 Anyone who:
✔ Owns more than 25% of shares
✔ Holds more than 25% of voting rights
✔ Can appoint or remove most of the board members
✔ Has significant influence or control
✔ Controls a trust or firm that meets any of the above

💼 It’s all about transparency and keeping businesses accountable.

👉 If you're not sure whether you or someone else qualifies as a PSC, now’s the time to check!

📣 CITB Returns – Don’t Miss the Deadline! 🛠️

If you're running a construction business in the UK, this is your reminder: CITB Levy Returns are due by 30 June 2025!

You need to submit a return, whether you owe anything or not, it's essential to stay eligible for CITB grants and funding.

🔍 What You Need to Know:

✅ The return is based on your PAYE and CIS payments
✅ ALL registered employers must submit – big or small
✅ No submission = no access to grants and possible penalties
✅ Even if you owe £0, you still MUST file!

💡 Need help? Use these links:
🔗 Grants and funding: https://www.citb.co.uk/levy-grants-and-funding/citb-levy/about-the-citb-levy/
🔗 Contact CITB: https://www.citb.co.uk/contact-us/

💬 Got questions? Drop a comment or message us.

About the CITB Levy - Does it apply to you & cost? - CITB About the CITB Levy

💡 Let’s Talk About VAT!

If you run a small business, you've probably heard of VAT (Value Added Tax). But do you really know how it affects your business?

Here’s a quick breakdown that could save you time, money, and stress 👇

🔹 What is VAT?
VAT is a tax added to most goods and services. If your turnover hits £90,000, you must register with HMRC. But even if you're under that threshold, registering voluntarily can have its perks.

🔹 Why does it matter?
Because it impacts your cash flow, pricing, and paperwork. And HMRC doesn’t accept “I didn’t know” as an excuse!

🧾 Key Things Every Small Business Should Know:

✅ Keep an eye on your turnover – Check monthly so you don’t miss the VAT threshold.
✅ Claim back VAT – You can reclaim VAT on business purchases (if you keep good records).
✅ Use the right tools – With Making Tax Digital, you’ll need HMRC approved software.
✅ Choose your VAT scheme wisely – Flat Rate? Cash Accounting? Get advice!
✅ Think about your prices – Especially if you sell direct to consumers (B2C). Clarity is key.

💬 Should you register voluntarily?
It depends. If you buy a lot with VAT or sell mainly to VAT-registered clients, it might be worth it. But it does come with extra admin.

🎯 Final Tip:
Talk to an accountant or business advisor early. Don’t let VAT become a last-minute panic!

💼 Did You Know You Can Donate To Charity and Pay Less Corporation Tax?

If your limited company is making a profit, there’s a smart, HMRC-approved way to give back and it could save you money on your tax bill.

📉 Charity donations made through your company can reduce your corporation tax.

💡 How it Works:
When your company donates to a registered UK charity, the value of the donation is deducted from your profits before tax.

Less profit = less tax to pay.

📊 Example:
Earn £100,000 → Donate £10,000 → Only taxed on £90,000.

➡️ That’s a potential saving of £2,500 at the 25% tax rate.

🧾 What You Can Donate:
✔️ Cash
✔️ Sponsorship payments
✔️ Equipment or trading stock
✔️ Land, property, or shares

✅ The charity must be registered with HMRC
✅ You can’t personally benefit in return (public recognition is fine, but no gifts or perks)

📚 Read the official HMRC guidance here:
🔗 https://www.gov.uk/tax-limited-company-gives-to-charity

🎯 Giving through your business isn’t just generous—it’s financially smart.

💬 Has your company made a donation this year? Share your story below—we’d love to hear which causes you're supporting.

Tax when your limited company gives to charity How to claim Corporation Tax relief when your limited company donates money, land, property or shares to charity

📣 Still using spreadsheets to manage your business finances?

Here’s why we’re big fans of bookkeeping software and why our clients love it too:

💷 Know your numbers in real time
Check your finances anytime, anywhere, perfect for busy business owners on the go.

🧾 Less paperwork, more peace of mind
Automated tools = fewer errors and hours saved on manual entry.

👥 Easier collaboration
You and your accountant can work together seamlessly in the cloud.

✅ Stay compliant without the stress
MTD ready software makes VAT and HMRC reporting smooth and simple.

📈 Built to grow with you
Whether you’re a sole trader or scaling fast, the right tools support your journey.

We work with platforms like Xero, QuickBooks, FreeAgent and many others, to help our clients get the most out of their number without the overwhelm.

💬 Thinking of switching? We’ll help you get set up, trained, and confident.

👉 Drop us a message or comment below to find out more!

📣 Making Tax Digital: What Small Businesses Need to Know

Big changes are coming for sole traders, landlords, and small businesses.

From April 2026, HMRC is rolling out Making Tax Digital for Income Tax Self Assessment (MTD ITSA) and if you’re earning over £50,000, it’s going to affect you. In April 2027, the threshold drops to £30,000.

🔍 Who’s affected?
✅ Self-employed individuals
✅ Landlords earning over £50k (from 2026)
✅ Over £30k? You'll join in 2027
(General partnerships and those earning less than £30k are exempt for now)

🧾 What will you need to do?
📌 Keep digital records of income and expenses
📌 Send quarterly updates to HMRC using MTD approved software
📌 Submit an End-of-Period Statement + Final Declaration every year

📉 What does this mean for your business?
You’ll need to manage your accounts throughout the year, not just once at tax time. That might feel like a big change but it also means:
✔️ Better visibility of your finances
✔️ Fewer surprises at year-end
✔️ Easier planning for tax and cash flow

💡 Our Top Tips:
🔹 Don’t wait! Start looking at software like Xero, QuickBooks, FreeAgent.
🔹 Begin keeping digital records now to get ahead.
🔹 Partner with an accountant who knows MTD inside out and can guide you through setup and ongoing requirements.

⚠️ Is Your Business at Risk of VAT Fraud?
Missing Trader (MTIC) fraud is a serious issue in the UK. Fraudsters vanish without paying VAT, often using legitimate businesses in the chain. If HMRC believes your business “knew or should have known” about the fraud, they can deny your VAT claims.

Here’s how to protect yourself:
✅ Check who you’re trading with
✅ Be alert to strange deals or payment methods
✅ Keep clear, accurate records

Stay informed and stay safe.

📄 HMRC Guide: How to Spot Missing Trader VAT Fraud:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/947102/Missing_trader_fraud_2020.pdf
📰 Recent case:https://assets.caselaw.nationalarchives.gov.uk/ukftt/tc/2025/405/ukftt_tc_2025_405.pdf

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assets.publishing.service.gov.uk

📢 Important Changes Coming to Companies House in 2025

The UK is introducing new rules to make business more transparent and reduce economic crime. If you’re a company director, PSC (person with significant control), or file documents on behalf of a company, these changes will affect you.

🔐 What’s happening?
Companies House will now require identity verification for directors, PSCs, and anyone filing on behalf of a business. This means confirming who you are either directly through GOV.UK or via an Authorised Corporate Service Provider (ACSP) like an accountant or solicitor.

🗓️ Key Dates:
➡️ 8 April 2025 – Voluntary identity checks begin
➡️ Autumn 2025 – ID checks become mandatory for new directors/PSCs
➡️ Spring 2026 – Only verified individuals or ACSPs can submit filings

💡 These changes are about improving trust in the business environment and protecting against misuse of UK-registered companies.

📍 For more info, visit:
👉 https://changestoukcompanylaw.campaign.gov.uk/identity-verification

Identity verification Identity verification Companies House will introduce a new identity verification process to help deter those wishing to use companies for illegal purposes.   Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to ...