Monday February 14, 2011

Dear Reader

Big Tax Changes Ahead

First of all may I wish you all a very Happy New Year - yes I know it's Valentine's Day, but in our industry, January represents the end of the tax filing year which also explains why many accountants head off on holiday in February - Lesley and I are no exception.

Next month I will talk about planning for the tax year end, but for now I wanted give an insight into the tax changes which will impact many small businesses in 2011-12 - especially those making profits. Click here to learn more about the changes and their impact, especially on sole traders.

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Company Director Tax Returns

We often come across the situation of people running their own limited company but not taking any income from it. This often occurs in the early stages of the business when there is insufficient cash available to pay a salary, dividend or reimburse expenses. As soon as you become a director of a limited company, then you are required to register for self-assessment and complete an annual tax return as an individual. There is a copy of the form on our website . If you are a shareholder, but not a director, then you will not automatically need to complete a return, this will depend on the level of dividend and other income you receive.

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