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,...

Capital Gains Tax (CGT) Explained – Marriage and Divorce

When a person gives/sells shares, investment properties etc. to a spouse, the transfer is deemed to be at a no gain/no loss value – so no CGT to pay. By transferring a half share of an investment property to your spouse prior to selling it, you can double the tax-free...

Depreciation and capital allowances

Most expenses incurred by business is written off during the year, but some costs continue for several years, for example, vehicles and computers. Because they depreciate over several years, you can allocate a portion of the cost to each annual set of accounts. For...

How Limited Company Dividends work

When a Limited Company makes profit it can pay the profit out to its owners by Dividends – which are paid out in proportion to the shares held by the shareholders.  Someone with 100 shares will be paid 100 times more dividends than someone with 1 share....

Should we set up our family business as a Partnership?

There are many reasons for not choosing a Partnership in your position, for instance: They are less tax efficient than Limited Companies Partners must pay Class 4 National Insurance All Partners are responsible for all debts Partnerships can result in disagreements if...

Can I employ my son and daughter in my new business?

Yes – assuming they are adults, and provided the salaries, and any other benefits you pay them, are commercially justifiable. These benefits could include: A company car Medical insurance Making payments into a registered pension scheme However, HMRC may...