What is a capital allowance? A capital allowance is an expenditure the U.K or Irish business may claim against its taxable profit. Capital allowances may be claimed on most assets purchased for use in the business, ranging from equipment and research costs to expenses for building renovations. The classification of these assets determines whether full or partial value can be claimed and whether the allowance is deductible in one year or over several. Once a business has calculated the number…

Switching from a Limited Company to an Umbrella Company Why would you need to switch from running your own limited company to using an umbrella company? We discuss the possible reasons behind this and what you need to do to switch from a limited company to an umbrella –if you find you will be better at making the switch. What is an umbrella company? A PAYE umbrella company is a standard UK limited company, operated by a third-party supplier acting…

The terminology, types of coins, tokens, and transactions can vary. The tax treatment of crypto-assets continues to develop due to the evolving nature of the underlying technology and the area in which crypto assets are used. The fats of each case need to be established before applying the relevant tax provisions according to what has actually taken place (rather than a reference to terminology). Our views may evolve further as the sector develops and HMRC may publish amended or supplementary…

Self Employed vs Limited Company, Which is better for you? Self-Employed This is the most popular way of running a business in the UK and maybe the best option if you want to get your company up and running quickly with minimal fuss. You can set the wheels in motion without worrying about filling annual accounts, paying corporation tax, or registering your business with companies house Limited Company Choosing to set up as a limited company is not as straightforward…

HMRC has general guidance on what expenses you can claim with a limited company. This means anything that is “essential” for your trade will fall under the description. Anything your company purchases for its trade, should allow it to generate more profit, for example, any software your company requires to use or advertise its services can be claimed for full tax corporation tax relief. If you want to claim more, then you will need to create a calculation to apportion…