Blogs
UK Tax Residence – The Statutory Test
Tax residency in the UK has long been a highly contentious issue particularly for those with tax affairs in more than one jurisdiction. As there was no statutory definition of what makes a person a ‘resident’, often it was left to individual circumstances, general practice, judicial interpretations and at times
Director’s Loan Account (DLA)
With the explosive growth of private limited companies in recent times, director’s loan account has come to occupy a special place on small company balance sheets. Whether made up of money spent by the director on behalf of his company or conversely the company paying for personal expenses of the
Close companies
A close company is defined in s.439 of the Corporation Tax Act 2010 (CTA/10) as one where one of the following applies: Controlled by 5 or less participators. Controlled by director participators where there are more than 5 participators On winding up more than 50% of the assets would be
Capital reduction – private companies
Whilst there may be a variety of reasons why a company would reduce its capital (for e.g. to increase the future earnings per share, to reward the shareholders in cash etc), the biggest attraction of all remains that a capital reduction could create a reserve that can be distributed as
Dividend waiver and settlement legislation
Well, let us be frank, dividend waiver has nothing to do with charity! The person waiving the dividend will usually have a financial or tax reason in mind. That said , normally when companies declare dividends, these are paid as a certain sum on ‘per share’ basis to all shareholders entitled to
Company strike off – law and procedures
Liquidation, which could either be a creditors’ liquidation, members’ voluntary liquidation or on the orders of a court, is one of the ways in which a company could end its life lawfully. An alternative to liquidation is an arrangement, whether formal or informal, between the company and the creditors where
Share buyback – private companies
Buying back its own shares is a very common way for a company to reduce capital. It helps situations where shareholders, who want to exit the company, struggle to find outside buyers for their shares. Carefully done, it could also result in some tax advantageous for the exiting shareholders whilst
Small Business Accountants
Small businesses in the UK account for 99% of all businesses. According to the Companies House website 426,500 companies were formed during 2011-12 and some 267200 companies dissolved during the same period. There were just over 3 million companies registered in the UK as of Jan 2013. Over 75% of
UK VAT registration
The basic rule that determines whether you need to compulsorily register for VAT in the UK is simple: If you’re a ‘taxable person’ making ‘taxable supplies’ in the UK above the registration threshold you need to register. But that is to over simply what is otherwise considered an extremely complex
