How does owning shares in a Company work?

Limited Companies in the UK are generally limited by shares representing the ownership of the Company. So if the Company issued 100 shares and you own 1 – you own 1% of the Company.  Shares come with certain rights, the most common type being an Ordinary share –...

I’ve been told I have a directors loan – what is it?

Many directors/shareholders borrow money from their Companies but, as long as they repay it within 9 months of their following accounting year end date, there are no great tax implications. If it is not repaid by that deadline, a law called s.455, says the Company...

What are the UK rules re tax on foreign earnings?

If you are Not UK resident for tax purposes, then you don’t need to pay UK income tax on your overseas earnings.  But the rules for deciding whether or not you are UK resident are rather complicated: You must consider, in order: also see HMRC Guidance notes The 183...

HMRC is a preferred creditor when businesses go bankrupt!

From April 2020, 4 taxes will become preferred and high ranking trade creditors in any business going into liquidation. They are; Income Tax, VAT, CIS schemes and Employees’ National Insurance. It used to be that when a business went into liquidation, creditors were...

What is a Business Partnership?

When 2 or more people go into business together it is a Partnership. There should be an agreement on how to split profits and who does what (essential when a partnership splits up). Simply advise HMRC and it is set up. It is easy to join a Partnership, and to leave,...