Accountants in Croydon | CruseBurke - Accounitng and Bookkeeping Service

 Many people form a limited liability company in the hopes of making a fortune. Unfortunately, such success is not assured, and it may elude others, necessitating the company's closure. If your company is no longer required, has no debts, and has ceased operations, shutting it down should be simple and straightforward. In these circumstances, the business can be wound up by following the Companies House website's "voluntary strike-off and dissolution process" - click here for more information. Before you begin the process of shutting down, be sure you have everything you need. Prior to filing an application to close the business , several prerequisites must have been met. The following are crucial: The company must not have traded or changed its name in the previous three months. HMRC will require final accounts to closure of trade and any taxes to be settled, so you must have told them. You'll also have to account for any surplus funds you plan to take out of the...

 What does it mean to have a "dormant company"? If your business isn't trading and isn't earning money from other sources, such as investments, it's termed dormant. For your corporation tax and Company Tax Returns, as well as your annual accounts and returns for Companies House, the phrase "dormant" indicates multiple things. For company tax purposes, it is dormant. If any of the following apply to your firm, it is considered dormant for corporation tax purposes: It has ceased business and has no other sources of revenue. It's a brand-new limited corporation that has yet to begin trading. It's a corporation that manages a block of flats. It's an unincorporated club or organisation with a corporation tax debt of less than £100. The government website has more information. Companies House is currently dormant. You can file ' dormant accounts ' without including an auditor's report if your firm is dormant according to Companies Hous...

 If you offer your products and services to customers in another EU country, you must follow different VAT requirements than if you were selling to customers in your own country. This is especially critical when dealing with international business clients, such as in B2B (business-to-business) transactions. You will also be subject to an unique taxation scheme known as the EU intra-community reverse charge mechanism if you buy products or services for business purposes from another firm within the EU territory. What Is The Reverse Charge Mechanism In The European Union? A reverse charge mechanism is a technique implemented within the EU to make taxes on intra-community transactions easier for both providers and customers. This mechanism also backs the EU's position that all goods and services should be taxed in the country where they are consumed. When a reverse charge method is used, the buyer of goods is responsible for paying the VAT instead of the supplier. It's worth notin...

 What Is the Distinction Between the Various Cost Types? Although fixed costs, total fixed costs, and variable costs all sound the same, there are major variations between them. The fundamental distinction is that fixed costs are unaffected by the number of goods or services a company produces, whereas variable and total fixed costs are heavily influenced by that number. The Different Cost Types and How to Recognize Them Fixed expenses do not alter if a corporation produces more or less items or delivers more or fewer services, as the term implies. For example, regardless of the amount of widgets produced within a building, the rent paid will be the same. Variable costs, on the other hand, vary based on the volume of output. The cost of materials used to make widgets, for example, will climb as the quantity of widgets produced rises. Fixed Fees A fixed cost is an expense that a corporation is required to pay and is usually connected to time. The monthly rent a company pays for off...

 What is Statutory Sick Pay, and how does it work? If you are sick and unable to work, your employer must pay you statutory sick pay . England, Wales, Scotland, and Northern Ireland are all affected. Age is a determining factor. There are no age restrictions. Benefits include: It was not proven in any way. Yes, it is taxable. Is Statutory Sick Pay available to me? Part-time workers, agency workers, and workers on a fixed-term contract are all eligible for Statutory Sick Pay (SSP). To be eligible, you must earn at least £120 per week on average. You may be able to claim Employment and Support Allowance instead if you do not earn enough to qualify or if you are self-employed. To be eligible for Statutory Sick Pay, you must have been sick for at least four days. You can collect Statutory Unwell Pay from the first day of your absence if you are sick with coronavirus or are forced to self-isolate after coming into touch with someone who has coronavirus. If you've previously received SSP...

 BADR, formerly known as Entrepreneurs' Relief , is a capital gains tax (CGT) relief designed to encourage people to expand and invest in their enterprises. It is a vital source of relief for higher and additional rate taxpayers. Although its benefits have been lowered and it has been threatened with removal in recent years, BADR has survived to date and continues to offer tax incentives to business owners. On the sale of business assets Relief , BADR is offered, lowering the CGT rate on eligible gains to 10%. (compared to the current standard rate of CGT of 20 percent ). Gains are limited to a lifetime cap of £1 million, thus the present maximum potential tax savings under BADR is £100,000. Individuals selling their personal enterprises or partnership interests, as well as directors and workers selling shares in the company (or group of companies) for which they work, are eligible for the relief. Trustees may be eligible for BADR under specific instances, although this isn't ...

Crowdfunding is a method of raising finances for a certain cause or project by asking a large number of people to donate money in small sums over a short period of time, typically a few months. Crowdfunding takes place online, frequently through social media platforms, making it simple for supporters to share a cause or project with their social networks. Crowdfunding can be used by nonprofits, organisations, and individuals for a variety of projects, including charity causes, creative projects, business startups, school tuition, and personal expenses. There are two primary types of crowdfunding models: Donation-based fundraising, in which donors pay a certain amount to a new project's total budget. The product or service that will be developed with the funds raised through the crowdfunding campaign is frequently promised as a return. There may be some other advantage or incentive for funders for philanthropic ventures whose ultimate benefactor is not the giver. Businesses seekin...

The Enterprise Management Incentive (EMI) is a tax-advantaged stock option plan for small businesses. The EMI is a stock option plan that allows organisations to reward top employees with equity in the company in order to recruit and retain them. Smaller, enterprising businesses that may not be able to match salaries provided elsewhere may benefit from the programme. What You Should Know About EMI Plans What Is The Difference Between An EMI Scheme And An EMI Share Option? A share option is a right to purchase shares in a firm under the terms of a contract. This will stipulate how many shares an employee can purchase, how much he or she will have to pay, and when the shares can be purchased through the exercise of the option. Option exercise may occur after a certain length of employment, upon completion of performance goals, or upon the sale of the company, for example. What Is the Purpose of EMI Plans? Shares or share options can be an important element of the package in attracting h...

 A value-added tax (VAT) is a type of tax that is levied on taxable goods and services throughout the supply chain. Some items and services are considered non-taxable or VAT-exempt by the government. There are also certain things that are completely exempt from VAT. Reduced or zero-rated items are not the same as exempt or out-of-scope items. Even if reduced rate items are charged less or no VAT, they are nonetheless deemed VAT taxable (VATable) and hence differ from the exemption. You cannot become VAT registered if you just sell VAT exempt things, thus you are a VAT exempt firm. You are a partially exempt business if you sell certain exempt items but also some taxable items. Because you don't sell any taxable things to your consumers, you won't be able to register for any VAT scheme. However, you may still need to purchase some taxable things to run your business, in which case you must pay VAT on those purchases and cannot claim VAT credit. Businesses that are partially exem...

 The money that flows in and out of your business in a month is referred to as cash flow . Although it may appear that cash flow only flows one way—out of the business—it actually does. Customers or clients are paying for your products or services, and money is coming in. If consumers don't pay at the time of purchase, collections of accounts receivable account for a portion of your cash flow. Payments for expenses such as rent or a mortgage, monthly loan payments, and payments for taxes and other accounts payable are all draining cash from your firm. During the COVID-19 Pandemic, Cash Flow Assistance Small businesses affected by the coronavirus can get a variety of coronavirus alleviation options, including: The Paycheck Protection Program (PPP) is a Small Business Administration (SBA) disaster loan that can help your company pay its employees. The loan is primarily intended as retention or rehiring incentive. Another $7 billion was authorised in the American Rescue Plan, which wa...