Sole Traders and Partnerships
Deciding to become a sole trader or a partnership is the simplist way of starting and running a business. Registration costs are minimal and record keeping is straightforward, as you only need to keep records of your income and expenses.
As a sole trader you are personally responsible and liable for all debts the business runs up, and your home and assets can be at risk. Benefits of a sole trader is all profits go straight to you.
As a sole trader you will need to register with HM Revenue and Customs as self employed and complete a self assessment tax return annually which needs to be filed by the 31st of January each year.
We can ensure you are correctly registered with the Revenue and paying the correct National Insurance contributions. We can also advise you if you need to be VAT registered as it may be beneficial to your tax position.
If you are working from home we can also advise you on allowances for home office, mobile and internet use and mileage claims.
Book a free no obligation consultation.
Changes to Annual Investment Allowance from 6th April 2012 and Maximising tax relief for the cost of machinery
Changes to Annual Investment Allowance from 6th April 2012 and Maximising tax relief for the cost of machinery
What is Annual Investment Allowance (AIA)?
The AIA is a form of capital allowance which offers tax relief at 100% on all qualifying expenditure on plant and machinery in the year of purchase. Currently the maximum you can deduct is £100,000. However, from 6th April 2012 this amount is being reduced to just £25,000.
There are exceptions to the plant and machinery that qualifies for AIA such as cars and plant and machinery gifted to your business.
AIA is adjusted for short or long accounting periods, and also for accounting periods that span the rates and dates of differing AIA.
Self Assessment Deadline is 31st January
The deadline for filing your self assessment tax return for the year ending 05th April 2011 is the 31st January. If you do not file by this date you could face penalties.
