HMRC letters to company directors on undeclared dividend income

hmrc letter 1

HMRC is contacting Company directors suspected of receiving dividends without declaring the income on their Self-Assessment Tax Returns Business owners have been receiving letters from HMRC as part of a recent campaign. These letters notify them about the potential requirement to declare dividend income. HMRC has been conducting investigations on company reserves, specifically targeting those…

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Understanding What is a Dormant Company: A Complete Guide

Companies House building with logo

If you’re asking ‘what is a dormant company,’ you’re looking at a business that exists on paper but is silent in the marketplace—no trading, no commercial activity. It’s a resting state that carries particular rules and benefits, from simpler reporting to tax nuances. This article provides the essential roadmap to understanding the concept of dormancy…

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Understanding Dividend Tax: A Comprehensive Breakdown for Investors

dividend tax

How much dividend tax will you owe? Get straight to the facts with our deep dive into dividend taxes. This article gives you the lowdown on rates, allowances, and formulas—everything you need to keep your dividend tax bill to a minimum. Stay informed and plan ahead for smarter investment decisions. Key Takeaways Dividend Tax Basics:…

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Companies House Late Filing Penalties: Avoid Costly Delays

Companies House Late Filing Penalties

Facing ‘Companies House late filing penalties’? Immediate action is required to mitigate the initial £150 fee, which increases over time. This concise guide breaks down the penalty structure, highlights critical deadlines, and offers strategic advice for compliance—helping you safeguard your company’s financial standing and reputation. Key Takeaways Understanding Late Filing Penalties A late filing penalty…

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Navigating Directors Loans: The Essential Guide for Business Leaders

Directors Loan

Taking out a directors loan can address your immediate financial needs as a company director, but it’s essential to handle this correctly to sidestep tax pitfalls and repayment hurdles. This article demystifies the directors loan process and offers practical advice on maintaining a clean directors loan account, staying tax-compliant and meeting your repayment obligations without…

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Company Tax Return Essentials: CT600 and Corporation Tax

Three business people discussing the company tax return.

Introduction Welcome to our introduction to Company Tax Returns, CT600, and Corporation Tax. This article is designed to be a valuable resource for business owners, financial professionals, and anyone involved in managing a company’s financial obligations. Understanding the complexities of tax compliance can be challenging, but it is crucial for the successful operation of your…

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Pool Cars – Benefits and Tax Traps

Pool car

Are you a business considering the use of pool cars for your employees? Pool cars can provide numerous benefits, such as cost savings, increased efficiency, and improved flexibility. However, it’s essential to understand the tax implications associated with pool cars to ensure compliance and make informed financial decisions. In this post, we’ll explore the key…

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Understanding Full Expensing

Jcb backhoe loader with Full Expensing.

Full expensing is a tax relief scheme that allows companies to claim 100% of the cost of qualifying plant and machinery all in one go. This tax incentive was introduced in the Spring Budget 2023 and runs from 01 April 2023 to 31 March 2026. Why Full Expensing Matters This tax relief measure encourages UK…

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Employing Your Children in Your Business

A group of teddy bears on a white background, perfect for children's businesses.

Including your children in your business and finances can be a rewarding experience, offering them valuable work experience and instilling a strong work ethic while providing tax benefits for the business. However, employing your children involves understanding and adhering to legal, tax, and regulatory requirements. This article will help you navigate the complexities of employing…

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