Changes to UK company law – from 4 March 2024

Changes to UK company law – from 4 March 2024

Changes to UK company law under the Economic Crime and Corporate Transparency Act will be rolled out over the next few years. The first set of measures will take effect from 4 March 2024.

Conditions for incorporation relief

There still seems a lot of confusion over what constitutes a business for tax purposes and what will qualify for Incorporation relief. Many qualified accountants are still giving wrong tax advice!

A ‘company’ includes any body corporate, unincorporated association or unit trust scheme but does not include a partnership or a limited liability partnership.

The taxman’s dodgy data

Over the years of JMS Accounting operation, we have dealt with many data issues in relation to HMRC.  When HMRC get things wrong they cause stress and waste large amounts of time for both our practice and our clients.  Clients will often not understand that HMRC are at fault and our practice wastes many man-hours resolving mistakes by HMRC. 

It was some comfort to our practice to read this article in the Spectator that highlighted the extensive data problems problems at HMRC.  It doesn’t solve the issues, but it helps to understand the issues that our practice has to deal with were not just experienced by us but many businesses. 

Gifting out of surplus income – The exemption that could save you 40% on tax!

Gifting out of surplus income - The exemption that could save you 40% on tax!

There is a little-known trick that allows you to pass on unlimited wealth to your loved ones free of inheritance tax. It doesn’t require complex trusts or bonds, expensive advice, or endless admin. In fact, all you need to set it up is a letter.

The exemption is known as gifting out of surplus income. In other words, you can pass on as much money as you like so long as it comes from your income rather than existing assets.

Tax Matters – What is Residential Property?

There have been a number of cases in recent years where various tax payers and advisers have claimed purchase of land and buildings as non-residential or mixed use property, and unfortunately all have failed.

Tax Implications of Social Media Influencers: What You Need to Know

In recent years, the rise of social media has given birth to a new breed of celebrities known as social media influencers. These individuals have amassed large followings on platforms like Instagram, YouTube, and TikTok, and they often collaborate with brands to promote products and services. However, what many influencers may overlook amidst their newfound fame is the tax implications associated with their earnings.

Incorporation myths

There are many myths that have been generated about incorporation of a property portfolio.

What is a Shareholder’s agreement & why is it important?

A shareholder’s agreement is a set of rules and conditions that affect a running of a company. Basically if you have a company with more than one shareholder, then this document is absolutely necessary to preserve the company and its relationships with the shareholder and directors, where you have external stewards running the company for you.