Harlow's Accountancy Limited

Income Tax changes for Landlords from April 2027. There is a 2% increase to income tax for property income, meaning basic rate tax payers will now pay 22% tax on profits, higher rate tax payers will pay 42% and additional rate tax payers will pay 47%.

Understanding share classes is essential for anyone running or setting up a limited company. In this video, we explain alphabet shares—how they work, why companies use them, and how they can offer flexibility when distributing dividends between different shareholders.

Does your partner own a limited company, you’ve been providing services to this company, but aren’t employed? Would you work for someone else, provide the same service, free of charge?If you are providing a service to a business, you are entitled to a reasonable salary for the work that you are doing, this then reduces tax within the company, and will allow you as a couple to be more tax efficient.

An overdrawn director’s loan account can lead to unexpected tax charges and compliance issues if it’s not managed correctly. In this video, we explain what an overdrawn dla is, why it can happen and the tax implications.

Confused about Director’s Loan Accounts? You’re not alone. In this video we give a very simplified explanation on what they are and how they work.

Directors Trivial Benefits - Directors of close companies (limited company ran by 5 or fewer shareholders) can take up to 6 £50 benefits from your Ltd company, each year and receieve corporation tax relief, without being taxed on the benefit personally. They cannot be cash or cash vouchers, must not reward work performance and must not be contractual. An Amazon voucher for £50 is an example of what would be allowable.

Electric Cars - Are they beneficial to put through your Ltd company? 50k Purchase Price (Brand New Electric Vehicle), you’d save 19-25% corporation tax in year 1 (£9,500-£12,500) you’d then pay a benefit in kind personally, at 4%, and pay 15% class 1A NIC within your Ltd company. So the benefit in kind value would be £2,000, if you’re a basic rate tax payer, you’d pay a BIK of £400, if you’re a higher rate tax payer, you’d pay a BIK of £800. Your company would then pay class 1A NIC of £300.

Limited company directors and private pension contributions.

This video goes through voluntarily registering for VAT and an example of a business that may benefit from doing so - featuring two cats😂. If you are considering this, please speak with your accountant beforehand so they can access your business and see if this will benefit you. HMRC allows goods to be reclaimed up to 4 years prior to VAT registration and services up to 6 months, subject to certain conditions(check with your accountant) so I have used a van as the example here. There is also a capital goods scheme that can allow businesses to reclaim VAT for up to 10 years prior to registration.

VAT Cash Accounting.