Depreciation and Capital Allowances

Most expenses incurred by business are written off during the year, but some relate to assets that are used for several years, for example, vehicles and computers.  Because they last for several years, you can allocate a portion of the cost to each annual set of...

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 –...

HMRC is a preferred creditor when businesses go bankrupt!

From April 2020, 4 taxes became 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 paid...

Tax advantages of a Limited Company

There are 3 tax advantages for small Limited Companies over Sole Traders and Partnerships. There is no National Insurance to pay on Dividends, but 7.5% tax is due after the first £2,000 is paid out. You pay income tax on dividends only when you take out the money...

Government Measures to Support Businesses

At AMS we have tried to make sense of, and put some detail on, the recent Government measures that have been publicised – below are links to certain other websites that contain useful information – namely the www.gov.uk website, the ICAEW website and a link that our...