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Milner Boardman Know Your Numbers

Discover the vital aspects of choosing the right business structure, including sole traders, partnerships, and limited companies. This comprehensive guide offers insights into tax-efficient strategies like salary vs. dividends, employing shareholders, and utilizing alphabet shares. Learn about setting up agreements to avoid future pitfalls, the complexities of VAT registration, PAYE for employees, and directors' remuneration. Understand legal requirements for various business types and gain expertise in strategic planning and financial management. Optimize your business for success now!

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Milner Boardman Know Your Numbers

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  1. Milner Boardman Know Your Numbers

  2. Milner Boardman Know Your Numbers What entity should I use? • Sole Trader ship • Partnership • Limited Company • Limited Liability Partnership Should I Incorporate Spread sheet

  3. Milner Boardman Know Your Numbers How to structure tax efficiently • Salary Vs Dividends • Spouse as employee/shareholder • Non working spouse • Lower earning spouse • Alphabet shares • Different dividend rates

  4. Milner Boardman Know Your Numbers Setting up to avoid future pitfalls • Partnership Agreement • Shareholder Agreement • Cross option Agreements • Cross option death cover • Key man insurance • HMRC Compliance • Insure? • Get it right from the start

  5. Milner Boardman Know Your Numbers Accounting Systems • Xero • Sage 50 • Quickbooks • Hosted Vs Non Hosted • Pros & Cons • What else do I need? • Demo Xero www.xero.com

  6. Milner Boardman Know Your Numbers VAT Registration • Voluntary VAT Registration • Who are customers? • Can they re-claim VAT? • Advantages of Voluntary registration • Disadvantages of Voluntary registration • Compulsory Registration • Threshold for Registration • Threshold for De-registration • VAT Flat Rate Scheme

  7. Milner Boardman Know Your Numbers VAT Registration • Cash Accounting or Accruals Accounting • Threshold • Advantages • Automatic Bad Debt relief

  8. Milner Boardman Know Your Numbers VAT Registration Complexities • International Supplies • Place of supply (French Lorry) • Reverse charge • Special Schemes • Partial Exemption • Property • Carousel Fraud

  9. Milner Boardman Know Your Numbers PAYE • Any employees? • Directors • Efficient remuneration level (next slide) • RTI • Auto-enrolment • Up to date software? • Use bureau?

  10. Milner Boardman Know Your Numbers PAYE - Directors Salary

  11. Milner Boardman Know Your Numbers What Expenses Can I Claim • Cost of running business • Mileage Vs Car Provision • Subsistence • Clothing – Problem Area New Business Kit

  12. Milner Boardman Know Your Numbers Established Sole-Trader/Partnership/Business • Should I Incorporate • Sale of Goodwill? • Where does goodwill lie? • Downsides • Compliance cost • Public information • Upside • Limited Liability • Tax savings

  13. Milner Boardman Know Your Numbers Sale of Goodwill to Limited Co

  14. Milner Boardman Know Your Numbers Limited Company – Problem Areas • IR35 • Prohibited Professions

  15. Milner Boardman Know Your Numbers Aggressive Tax Planning • Examples • HMRC attitude • Current climate

  16. Milner Boardman Know Your Numbers Tax Problems/Pitfalls • HMRC Focus • Specific Trades • Specific Sectors • Status Issues • Construction Industry • Pitfalls • Cash trading (under declarations) • ML Regime (SOCA) • Claiming excessive costs • Cars/Pool Cars • ER

  17. Milner Boardman Know Your Numbers Employee Share Ownership/Reward • EMI • Employee Share Scheme • Others Rewards • Salary Sacrifice Schemes • Nursery/Child care vouchers • Cycle to work

  18. Milner Boardman Know Your Numbers Legal Requirements for Businesses • Limited Co/LLPs • Full Accounts for share holders/members • Abbreviated Accounts for Co House • Ibrxl Accounts for HMRC • CT Return to HMRC – Cos • Partnership return to HMRC-LLPs • Governance • Companies Act • Other Legislation (employment etc)

  19. Milner Boardman Know Your Numbers Legal Requirements for Businesses • Sole traders/Partners • Full Accounts for owners • Lower disclosure • Accounts transferred to tax return • Tax return for owners • Governance • Other Legislation (employment etc.) • No Co. Act Beware time limits

  20. Milner Boardman Know Your Numbers Understanding a Balance Sheet/P & L • Limited company accounts • Partnership accounts

  21. Milner Boardman Know Your Numbers Strategic Planning • Personal goals • Corporate goals • Developing a strategic plan • Working to a strategic plan • Where are we now? • Where do we want to be? • When do we want to get there? • Do all stakeholders have the same view? • Benchmarking • Planning tools

  22. Milner Boardman Know Your Numbers Tony Collier 0161 927 2727 tonyc@milnerb.co.uk www.milnerboardman.co.uk

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