As a business owner, you have many responsibilities and obligations to fulfil. You have filing and payment obligations to HMRC, and also Companies House if you have a limited company. The accounting and other financial responsibilities, plus remaining compliant with Read more
Monthly Archives: March 2015
Missing the self-assessment filing deadline: how much will it cost you?
According to data released by HM Revenue & Customs (HMRC), the number of self-assessment customers who failed to submit a tax return before the 31st January deadline – all of whom receive an automated £100 penalty – could be as many as 890,000. While this is far more Read more
How hiring equipment can help your business
There are more companies than ever realising the benefits of hiring tools and equipment. In addition to being affordable and convenient, several benefits to the business are worth bearing in mind.
Companies can always have access to the latest equipment when hiring, without having to worry about updating machinery and tools to maintain safety and efficiency.
Go with the flow
Hiring equipment rather than buying will improve the company’s cash flow. Rather than investing large amounts of capital into tools and equipment, you can spread payments over a set period, only paying for the equipment needed during that time. You don’t have to be concerned about updating and maintaining equipment if it is hired, which will also help to preserve cash flow. With more expensive specialist equipment, it may even be necessary to borrow finance to buy the item, whereas hiring will enable you to spread payments over a longer period, helping you to budget for the long term.
Tax relief
Hiring equipment for the business is allowable as a business expense and may be deducted from the gross profits. By doing this, the tax bill for the year will be reduced. However, if you buy an item of equipment through hire purchase, capital allowances can be claimed. It is important to claim the correct type of relief so that you remain compliant. If you outsource accounting, your adviser will be able to demonstrate the correct way to claim for equipment hire. If the business is trading at a loss, it is even more important to claim tax relief on equipment hire.
Reliable equipment
If you buy tools and machinery outright, you are responsible for maintenance and repair which is costly. The resulting bill for repairing and upgrading machinery and tools can be a huge drain on cash flow, leaving the business short of finance. Hiring from a reliable company will ensure that any breakdowns are dealt with as soon as possible, without having to worry about available finance.
If you decide that you need to replace the machinery, you don’t have to be concerned about securing finance. Very often, you can end up buying cheaper equipment due to a lack of business funds, whereas hiring a superior standard of equipment that performs better than a cheaper model and may also increase safety standards will benefit the company with no extra outlay.
For more information about how hiring tools and equipment can help your company, contact us today.
HMRC proposes changes to penalty system
The existing penalty charges issued by HM Revenue & Customs (HMRC) for late filing of documents and making late payments could soon be a thing of the past, as officials consider a points based system for Read more
How to avoid the most common tax return errors
If you fulfil the self-assessment criteria and have to complete a tax return, it is vital to include all relevant information and take care to ensure it is accurate. There are many Read more
Reasons to hire rather than buy tools
When you start a company, you face a period of vast expenditure when you may have to buy or lease space, hire employees, furnish and equip premises and more. Tools and Read more
Top tips for avoiding penalties
Penalties are issued by HM Revenue & Customs (HMRC) in a number of situations. Missing a deadline for filing self-assessment tax returns, or not submitting Real Time Information documents in a timely manner, will result in a hefty penalty. Failing to pay tax on time is another situation where you will be penalised by HMRC. The cost of penalties soon adds up, sometimes to Read more
How to improve your chances of securing finance
Accessing the necessary finance can be a problem for a small company, especially if the business is relatively new. Funding is essential for expanding operations, especially when it comes to exporting, but securing adequate finance can be tricky.
There are Read more