YOUR BUSINESS SPRING 2019 - 73

Tax solutions

I

t isn't the most glamorous part
of being an entrepreneur, but
tax is something you need to
master if your enterprise is
to be a success. As a business
owner, it's vital that you're up
to date on the latest tax regulations
on everything from corporation tax
to VAT and PAYE. Not only could
you face fines for failing to meet
your liabilities, but you could also
be missing out on tax breaks.
The main taxes that affect start-up
business are corporation tax, which
is payable on any taxable profits at
19%, dropping to 18% from 1st April
2020. If you're self-employed, you
will be liable for income tax at a rate
of 20% to 45% (or 21% to 46% in
Scotland), depending on your profit.
If your turnover is more than £85,000
a year, you will also need to register
and account for VAT to HMRC.
If you employ people, pay as you
earn (PAYE) and national insurance
need to be deducted from wages and
paid to HMRC. There are other taxes,
too, depending on your circumstances.

WORDS TRISH LESSLIE

Corporate
finance
Tax isn't the only thing you have
to worry about on the financial
front. You'll want to make the
best decisions for your enterprise
when it comes to things such as
borrowing, capital investment
and payment of dividends.
Corporate finance applies to
all businesses and is basically
the term used for all your
venture's financial business
decisions. It can bring legal
implications too. For example,
if the wording on a contract
with an investor isn't watertight,
you could find yourself losing
control of your business and its
profits further down the line.
That's why it's important to
consult a solicitor (see page 85),
as well as your accountant, on all
financial decisions you make.

Paying an accountant to assist
with your tax can free up your time,
allowing you to focus your attention
on generating income and growing
your brand and business. Able to
assist with everything from payroll to
VAT, an accountant can also help you
to maximise valuable tax reliefs by
making sure you take advantage of the
incentives the government has in place
for businesses big and small. Here's
what you could be claiming back.

Annual investment allowance

This allowance entitles you to claim on
the cost of most plant and machinery
up to the designated amount. The cap
was temporarily raised from £200,000
to £1m for two years starting from 1st
January 2019. The criteria are quite
strict. Company cars, for example,
aren't on the list. You also have to own
the assets rather than lease them.

Business premises
renovation allowance

If the building your business plans
to use has been empty for more

You and HMRC
Susan Ball, head of employers'
advisory services at Crowe,
explains what the HMRC may
expect from you
HMRC may conduct an employer
compliance review, risk review
or compliance check to ensure
employers and contractors are
meeting PAYE, national insurance
contributions and construction
industry scheme obligations.
It will make initial contact
by phone or email, then issue
letters, supporting fact sheets
and an employer compliance
questionnaire. Advice should
be taken on answers to any
questions from HMRC and to
what records HMRC is entitled to
see and who, if anyone, should
attend any meeting with HMRC.
Seeking specialist help ensures
you know you're complying with
your obligations and frees up your
time to focus on your business.
As a national audit, tax, advisory
and risk firm, a firm such as
Crowe can do relatively simple
preparation and filing of records
on time to more complex advice
on international expansion.

73
YOUR BUSINESS SPRING 2019

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