Here are this month’s small business tips from Deliciouslyorkshire Associate Members Garbutt + Elliott.
Business vehicles are a typical area where a little though about the tax rules can pay off. In some cases you might be better off running vehicles through an operating lease, rather than owning them through HP or purchase. They have different tax implications, including VAT, and obviously different ownership costs, so you should evaluate if a different option makes a clear difference to you.
Other vehicle relating tax considerations include:
- If you provide private fuel for an employee’s “company” car, you can calculate a break-even point beyond which private fuel benefit should not be provided.
- The choice of car for you or your employees will affect tax bills and business tax relief depending on the emissions. CO2 Emissions of 130g/km2 or less are a key threshold for tax for either ownership or leasing, and for a company car benefit there are a number of emissions bands.
- If your employees take vans home overnight, are you sure they just use them for commuting? Unauthorised private use, and an eagle-eyed Tax inspector at the supermarket or tip could mean that your employee is hit with a tax charge and you with a national insurance charge on the benefit.
If your sole trade or partnership business is growing, or you are concerned about uninsured liabilities or future risk generally, then you should consider the benefits of using a Limited Company or Limited Liability Partnership to either save tax or separate your personal assets from trade creditors.
The new National Living wage applies to most employees aged 25 or over from 1 April 2016. Another obligation on the horizon – if you haven’t already attended to it – may be provision of a workplace auto-enrolment pension for your employees. Auto enrolment is quickly becoming reality for all businesses, with scheduled staging dates to ensure that all businesses are enrolled by early 2018. Auto enrolment is a complex matter, with lots of different options to consider and be aware of. If your company employs one person or one hundred persons you are still legally required to put a workplace pension scheme in place, though there are some exemptions were the only employees are directors.
For advice specific to your circumstances please contact Small Business Tips – Deliciously Yorkshire
Here are this month’s small business tips, whether you are a company or sole trader.
Business vehicles are a typical area where a little though about the tax rules can pay off. In some cases you might be better off running vehicles through an operating lease, rather than owning them through HP or purchase. They have different tax implications, including VAT, and obviously different ownership costs, so you should evaluate if a different option makes a clear difference to you.
Other vehicle relating tax considerations include:
- If you provide private fuel for an employee’s “company” car, you can calculate a break-even point beyond which private fuel benefit should not be provided.
- The choice of car for you or your employees will affect tax bills and business tax relief depending on the emissions. CO2 Emissions of 130g/km2 or less are a key threshold for tax for either ownership or leasing, and for a company car benefit there are a number of emissions bands.
- If your employees take vans home overnight, are you sure they just use them for commuting? Unauthorised private use, and an eagle-eyed Tax inspector at the supermarket or tip could mean that your employee is hit with a tax charge and you with a national insurance charge on the benefit.
If your sole trade or partnership business is growing, or you are concerned about uninsured liabilities or future risk generally, then you should consider the benefits of using a Limited Company or Limited Liability Partnership to either save tax or separate your personal assets from trade creditors.
The new National Living wage applies to most employees aged 25 or over from 1 April 2016. Another obligation on the horizon – if you haven’t already attended to it – may be provision of a workplace auto-enrolment pension for your employees. Auto enrolment is quickly becoming reality for all businesses, with scheduled staging dates to ensure that all businesses are enrolled by early 2018. Auto enrolment is a complex matter, with lots of different options to consider and be aware of. If your company employs one person or one hundred persons you are still legally required to put a workplace pension scheme in place, though there are some exemptions were the only employees are directors.
For advice specific to your circumstances please contact us on 01904 464100 or enquiry@garbutt-elliott.co.uk and we can advise on all of these areas and who can advise on all of these areas and more.