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Financial Management.

We are a small network of Independent Financial Advisers directly regulated by the Financial Services Authority, and mainly linked to firms of Chartered Accountants in The CharterGroup Alliance.

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Tax

“Nothing in this world is certain save for death and taxes” is a quote attributed to Benjamin Franklin in the 18^th Century, and is as true today as it was then.

As a business, the taxes you will encounter are:

·         Corporation tax – which is a tax on the profit your business makes after deductions for allowable expenses, cost of sales.

·         VAT – Value added tax, you add this to the cost of goods and services you charge to customers, apart from certain things which are exempt, and others that are nil-rated (children’s clothes for example)

·         Income tax – if you have employees you will need to deduct this along with National Insurance when you pay them (including yourself). You will be liable for Income Tax and National Insurance on the profit you make if you are self employed, or just Income Tax on dividend income you pay if you have set your business up as a ltd company.

·         National Insurance – See Income Tax above.

·         Capital Gains Tax – if you have assets in your business that you sell for a profit (not as part of your general trade), then the business will have to pay Capital Gains Tax on that profit. If you sell your business in the future then this too could be liable to Capital Gains Tax

·         Inheritance Tax – If you die, the value of your business should be exempt from Inheritance Tax under Business Property Relief, however, if you leave the business to your wife, and she subsequently sells the business, this exemption will then be lost. We can show you how to avoid this situation.

·         Business rates – if you rent or own the property that you work from, then you will have to pay rates to the local council. Small businesses can claim certain exemptions or discounts.

How we can help:

·         Advice on the best way to set up your business – would you be better as a limited company, self employed, LLP (limited Liability Partnership), partnership, or even a charity? We can tell you the pros and cons of each, and direct you to the right person to help you set up

·         Payroll – how to register, when you should register, advice on contracts of employment, can you do the PAYE yourself, or do you need an accountant?

·         Tax planning – what is the best way to remove money from your business (for yourself), how to pay less tax on your profit, managing cash-flow, business debtors etc. How to pay less tax on any investments or cash the business has. Maximising allowances when you come to retire and sell your business.

·         Advice on partnership agreements, shareholder protection and key personnel protection (see risk analysis and protection sections)

·         How to avoid Inheritance Tax on your business assets and pension funds

·         How to make the most of allowances for Capital Gains tax and re-investment options to avoid or defer liabilities.