Tax Relief Options When Selling Your Business
Thinking about selling your business?
Deciding to sell your business brings mixed feelings: on one hand you may feel sad about passing your business on, but on the other hand you probably feel happy about making a successful sale.
Throughout the sale process, though, dealing with the paperwork and nuances of the deal may have distracted you, causing you to neglect your tax responsibilities. However, there are a number of options available to you that can help you to reduce any tax liabilities you may have. You can structure the sale of your business to help with these liabilities too. These are some of the options you can consider:
Entrepreneurs’ Tax Relief
This option means that you pay a reduced rate on Capital Gains Tax (CGT) of only 10%. You have access to £10 million of Entrepreneurs’ relief, but this is a lifetime limit. This is obviously an extremely attractive option for you, but there are some conditions you and your business will need to meet so it is critical that you get advice about the structure of your business to make sure you qualify.
Roll-over Tax Relief
This tax relief applies when you decide to invest the money gained from your business into another business. This means that Capital Gains Tax is not applied until you sell your next investment. Roll-over relief also applies if you invest your capital in unlisted shares (in a company not listed on the stock exchange), or if you give your business away to your children or spouse. In this instance, Capital Gains Tax will automatically be deferred.
Other considerations
Other than qualifying for specific tax relief benefits, there are other options available that can help save you money. You may be able to sell assets from your business and place the money into a pension scheme. However, this option could eventually mean a corporation tax bill. You should also talk to the buyer of your business about how they would like to structure the deal to suit their tax position. This should be demonstrated in the sale price. By reviewing all your options and taking advice from a qualified accountant, like Berley, you can limit your liabilities.
Contact Berley today
Berley are chartered accountants who can help you to plan the next steps you need to take regarding your tax responsibilities following the sale of your business. Working with us can make the transition easier to manage and can also save you money. If you would like to know more about tax relief after the sale of your business, please call one of our experienced tax team to discuss how we can help.
You can call us on 020 7636 9094 or complete our Free Online Enquiry and we’ll be in touch shortly.
Recruit Berley for your accountancy needs
Working in recruitment can be challenging, especially because there are a lot of regulations that you need to abide by.
At the same time, running your own recruitment business is incredibly rewarding and the fluctuating nature of the recruitment sector will keep you on your toes. Having a great accountancy team behind you can also help you to stay ahead of the game. In order to be successful as a business owner, you need an accountancy firm that understands the work you do. At Berley, we have had much experience working with a range of businesses, with the aim of assisting you, every step of the way, so that you can reach your potential.
What can Berley do for your recruitment agency?
As chartered accountants, we can offer you a number of services to help you improve your business. With these services, you can work on making the right changes in regards to developing your business, to ensure that you are prepared for the future.
Some of the things we can help you with include:
- Accountancy, bookkeeping and payroll services
- VAT and PAYE services
- Tax planning advice
- Calculating potential tax breaks
- Creating business plans to help you expand your business
- Providing a cloud-based accounting system
By leaving these aspects of your business with us, you can be sure that we will work hard to help you improve your finances and your overall accounts. This also means that you can focus your time on other top priorities such as vetting potential clients and filling job vacancies. Our goal is to ensure that dealing with your accounts and tax responsibilities does not prove to be an added chore for you, and by leaving it to the experts you can concentrate on your strengths as a business owner in the recruitment industry.
Contact Berley today
Our fixed monthly fees means that there are no unwanted surprises or hidden charges at the end of the month. Berley Chartered Accountants can give you the honest answers you need to make the best decision for your business. With the recruitment sector growing and developing, working with Berley can help you remain competitive and can even give you an edge.
For more information on how we can help your recruitment agency succeed, call us today on 020 7636 9094.
Berley: the Michelin star accountancy services you’re looking for
Working within the hospitality industry in London can be incredibly rewarding, especially because eating out has become more popular than ever, with many people choosing to spend their money on a quality dining experience.
However, due to the competition within the industry, owning a pub or restaurant can also be difficult. In order to make your life as easy as possible, Berley offers a personally tailored service that can assist you with managing your finances in the best possible way.
What can Berley do for your hospitality business?
Berley can be the chartered accountants you need to help you catapult your business ahead of the competition. We can work with you to provide a solid business plan that aims to improve your current business model. As well as this, we can analyse your financial situation, ensuring that you are aware of how to strategically organise your business income in order to maximise profit. Some of the services we can provide include:
- Specialist tax advice for pubs and restaurants
- Support with managing accountancy, bookkeeping, payroll, VAT and PAYE
- Advice on reducing your tax bill
- Advice on claiming business expenses
- Assisting with a cloud-based accounting system
Ultimately, Berley can be with you, every step of the way, to guarantee that you are making the necessary decisions to extend and expand your business. By helping you to understand key performance indicators (KPIs), for example, you will be able to track your business performance to see how you are doing in relation to the rest of the hospitality industry. This can be useful as it shows you how your business model is working and where there is room for improvement. Our goal is to support you as you undertake the challenges of running your restaurant or pub, and to cheer with you when you reap the rewards of all your hard work.
Contact Berley today
At Berley, we are accountants who are specialised in working with businesses in the hospitality industry. By leaving all your accountancy issues to us, including taxes, bookkeeping and payroll, you can concentrate on successfully running your business. We will provide you with the help you need for a fixed monthly fee with no hidden charges. Working with us, you can be sure to get expert advice and honest answers that will allow you make the most out of your business.
For more information on how we can help your hospitality business, call us today on 020 7636 9094.
How Soon Should I Plan For My Future?
One thing is for sure, you can never start planning your estate early enough. There are significant benefits that come from forward planning, and these apply to estates both large and small.
Estate planning, also known as making a Will, has a number of areas for consideration. In order to ensure that your estate benefits from advanced planning, you should consider the following things:
- Who will inherit from your estate and what will they inherit?
- Are there any specific time scales for the receipt of these items?
- Who will be legal guardian of your children?
- Are there any stipulations or limitations that come with the inheritance?
Once you have made a decision regarding the above points, you will need to get your Will drafted. Your finalised Will is legally binding and should undergo a yearly review to ensure that it is continuously up to date. Make sure that any minor amendments that you make are correct or your Will could be invalid. Major changes require a completely new draft.
I’m Ready To Plan; What Should I Do Now?
We have complied a useful checklist to help you to review how far you have got in planning your estate already. Please answer the statements Yes or No.
- I have made a Will
- I have told my family or loved ones where my Will is so it is easily accessible after I die
- I have children, and I have named their legal guardian in my Will in the event my partner and I both die whilst they are still under the age of 18
- I have spoken to an advisor and completed tax planning on my estate for the purpose of Inheritance Tax
- All my records are filed and stored safely and my family know where to find these if I die
- I know how much my estate is worth
- I have financial plans in place, both for the short and long terms
- I have selected an Executor for my Will
- I have considered setting up Trusts and I am aware of accumulation and maintenance trusts to help with my tax liability
- I have selected Trustees to manage these Trusts where necessary
- I am aware of the NIL rate band and of inheritance tax exemptions and my Will has been structured with this in mind
- I have thought about making monetary gifts to my family whilst I am alive to reduce my Inheritance Tax bill and take advantage of the Capital Gains Tax exemptions and reliefs
- I own a business and know the implications of Inheritance Tax on it
- I have already addressed any partnership and shareholder issues that may occur in my business when I die
- I am aware of the fact that my business assets can be given away without Capital Gains Tax or Inheritance Tax
If you have answered NO to any of these statements, it is essential that you seek advice about your estate planning as soon as you can. This will ensure that you are financially ready to face whatever the future holds, and that your family and loved ones are well protected.
To find out more about how to best plan for your future, call Berley now on 020 7636 9094.
Could you be due Creative Industries R&D Tax Relief?
Life can be tough in the creative industries, but tax relief could come to the rescue
Are you missing out on valuable tax relief? If you’re in the creative industry, there’s a good chance you could be owed a rebate without knowing it, thanks to rules surrounding research and development tax relief. But what is it and how can you find out if you’re eligible?
R&D Tax Relief
Businesses in the creative sectors are some of the most exciting and imaginative around, but competition is intense and many find themselves operating on thin margins. So, every little advantage helps.
The idea behind R&D tax relief is to encourage innovation. If you’re a company in the creative industry and you invest money in developing new products and services, or enhancing existing ones, you may be entitled to a cash pay-out, or a reduction on your corporation tax obligations.
Many people instinctively think of research and development as being complicated processes with men in white coats, but it can be much wider than that. It could be something as developing a short film, or producing a new piece of content. Either way the amount you could receive might be sizeable. Small to medium sized businesses could get 33p in every £1 back of qualifying expenditure.
To qualify, a business must be liable to corporation tax and directly involved in the production of certain films, animations, video games, theatrical productions and high-end children’s television programmes.
Each project will have to pass a cultural test or qualify through an internationally agreed co-production or treaty certifying that the project is a British film, video game or programme, although there are specific rules for certain sectors.
Theatre Tax Relief
One of these is theatre tax relief. In 2014, the Government introduced the Theatre Tax relief Act which extended many of these reliefs to the performing arts. To qualify, an organisation must be involved in the production, running and closing of a theatrical production.
It must also be:
- A theatrical production company
- The primary focus must be to play before an audience of paying members or for education purposes
- At least 25% of expenditure is incurred through the European Economic Area (EEA)
- Unlike some other forms of creative industries tax relief there is no need for a cultural test and it is payable at two rates: 25% for a touring production and 20% for others.
Video Games Tax Relief
Video games companies often overlook R&D Tax credits, but these could be extremely valuable. To qualify, the game must be British, intended for supply and at least 25% of expenditure must be incurred by goods or services which are provided within the EEA.
If you do qualify for this you might also be able to add an additional deduction when computing your taxable profits and surrender losses for a payable tax credit when that deduction results in a loss. In total, you could be able to claim 20% of your production costs.
Find out if you qualify for R&D tax relief
Apart from Theatre Tax Relief and Video Games Tax Relief mentioned above, there are other tax reliefs including: Film Tax Relief, Animation Tax Relief, High-end Television Tax Relief, Children’s Television Tax Relief and Orchestra Tax Relief.
There are also two other forms of tax reliefs:
- The Enterprise Investment Scheme (EIS) which gives investors generous tax benefits.
- The Seed Enterprise Investment Scheme (SEIS) which is designed to help start-ups raise equity finance by offering a range of tax reliefs to individual investors.
Tax relief is often an area of support which many businesses don’t think about. The scope of research and development, as laid down by these rules, is actually much wider than most people imagine, so you could be missing out on an incredibly important source of cash for your business.
At Berley, we can help creative industries to succeed by working with you to manage your accounts, deal with your cashflow, and provide advice on potential tax breaks. Through assessing your business, we can determine whether or not you qualify for R&D tax relief, or any other tax relief that could be applicable to your business, to ensure that you are getting all the benefits that you are entitled to.
To find out more about how Berley can support you with receiving tax relief, call us today on 020 7636 9094.
How to make the most of your NHS pension
Want to know how to maximise your pension on retirement? Read our short guide to see how you can make the NHS pension work for you.
We all worry about what will happen when we reach retirement and in an uncertain economic environment trust in basic structures such as pensions is not what it used to be. The good news, if you’re a doctor, is that you benefit from one of the best schemes around: the NHS pension.
What you get from the NHS pension
The NHS pension offers all sorts of attractive features such as:
- A link to the length of your service.
- You can be eligible even if you’re a locum, freelance, or self-employed doctor.
- Early retirement at the age of 50 or 55 depending on what scheme section you’re in.
- Taking 25% of the capital value of the pension as a tax-free lump sum.
- Benefits for dependants if you die.
- Benefits in case you have to retire early due to ill health.
A generous pension
Unfortunately, making the most of it is not always as straightforward as you might think. That’s partly because the pension is divided into different sections, and the exact rules often depend on which section of the pension plan you are in. Understanding your entitlements and plotting the best course forward can be devilishly difficult.
Recent rule changes have also made things a little more complicated. In 2016, the government limited the total amount of pensions savings you can build up to £1million, down from £1.25million. Any savings you accrue beyond this limit could be subject to a punitive 55% tax rate. Given that many doctors and GPs are relatively highly paid, you might expect to reach that limit some time before you reach retirement age, which might make early retirement a little more appealing.
Tax relief
The good news is that there are attractive tax relief on offer. The Government is desperate for more of us to pay into our pensions and so they will top up our contributions. If you’re contributing to an NHS pension plan directly from your salary, the payment is deducted from your gross salary before they take the tax. You therefore save tax on the money contributed to your pension.
You can also contribute to a private pension and receive an additional 25% of the value of your contribution from HMRC subject to certain limits. Let’s say you pay £80 into a private pension HMRC will then pay in an additional £20 making the contribution £100.
There are limits, though. You can only benefit from tax relief on deemed contributions up to £40,000 every year. Tapering of individual annual allowances was also introduced in April 2016. If your income is more than £150,000 and the threshold income is more than £110,000, you’ll have a reduced limit on the amount of tax efficient savings you can claim. The rules also have a habit of changing regularly. The retirement age may change and so too could rules about tax relief and other measures. Keeping up with it all can be quite a challenge, which is why it’s useful to get help from the experts.
Berley offers a comprehensive accountancy service that is tailored to your specific needs as a doctor. We can help you with everything from bookkeeping and payroll services, to personal tax advice. We can also help you to plan for your future by creating a pension plan and advising you on any tax relief that you may be eligible for. There are many challenges that you face as a doctor, but Berley will ensure that your accounts and pension will not be one of them.
To find out more about your pension and how to make the most out of your finances, call Berley today on 020 7636 9094.
Why should start-ups plan a launch event? Here are 5 reasons!
Establishing a new business can be a frightening, yet rewarding, adventure. Regardless of your industry, exposing your brand can help you to reach the clients that you want and can really reinforce client relationships.
Having a launch event will allow you to introduce your business, your brand, or your new product line to the public, and can ensure that you get the publicity you need to forward your start-up.
Here are five ways in which hosting a launch event can have a real impact on your start-up:
Face-to-face conversation
Meeting people face-to-face, and being able to directly communicate to them what your brand is and what services your business can provide, will really help you to cement client relationships that can last long into the future.
For many people, communicating with others face-to-face can really help in establishing long-term business relationships. It’s important for your clients to see who they are potentially doing business with so that they can build trust around your brand. With all of this in mind, it’s a good idea to use a launch event as a networking tool and to take advantage of all the contacts you can make.
Press coverage
Inviting the local press to your launch event can help you to get your brand out to the prefect audience. Make sure to invite local journalists to your event ahead of time. You can ask them to take some photos of the event and to conduct an interview with you, as the business owner, or with anyone else you may think relevant. Alternatively, you can also send a pre-prepared interview, as well as some photos of the event, to journalists and bloggers and ask them to put a short article together which sums up your business and the services you offer.
Social media exposure
Encourage attendees of your launch event to get involved with social media by providing ways in which they can post to their social media accounts. Get a printed Instagram board designed, or host a Twitter competition, all the while ensuring that your social media handles are always visible. Encourage your guests to post photos of the event and to follow your business social media accounts.
After your event, make sure to follow attendees and potential clients back on their social media platforms. This will guarantee that you stay connected with people and will encourage brand loyalty.
Show off your business vision
A launch event is the perfect place to show your guests who you are and what your business has to offer. Use this event as an opportunity to showcase your brand and its values to your attendees, giving them the chance to get a personal insight into what your start-up is all about.
Make your event memorable
Once your successful launch event is over, it’s important to start thinking about how you can turn guests into clients. Giving you attendees a few freebies, anything from branded pens to business cards, before they leave your event can help your business stick in their minds. Make sure to include your company logo, your contact details, and your social media accounts on everything you give away. This will help potential clients get in touch with you when they’re ready to do business.
How can Berley help?
Berley are chartered accountants that are dedicated to helping small businesses with all their accounting and financial needs. No two businesses are the same and we pride ourselves in offering services that are tailored to your specific brand.
As well as providing personal business assistance and supporting you through any financial worries you may have, we can also help you to arrange how to finance your launch event by offering funding advice. Having a start-up company means that organising a launch event can catapult your brand into the future, ensuring that you get the most out of being a business owner.
To find out more about how we can help you to manage your business accounts and plan for a launch event, call us today on 020 7636 9094.
Giving your small business an artificial helping hand
Artificial Intelligence is becoming an increasingly common sight in the business world.
For small businesses, the subject of Artificial Intelligence may be daunting, but adopting smart software into the day-to-day running of your business could help you to increase your productivity and could give you the helping hand you need to compete with larger industries.
How can AI assist you?
There are a range of businesses that AI can help with, such as sales, marketing, finance, HR, and customer services. Using AI can dramatically increase the efficiency and productivity of your small business. By using AI technology to deal with entering and analysing the data of your business, for example, you will be able to dedicate more time to focusing on the important things, such as making decisions for the future of your company.
In order to start using AI technology, your small business may need an upgraded IT infrastructure to support the AI software. By moving towards a cloud-based system, that can support AI, you can ensure that the data necessary for your business is easily accessible to the AI software. It is also important to stay current with the ways in which AI is evolving and the potential benefits it could provide for your business. Being aware of these changes, and implementing them when you can, can really help you stay ahead of the game within the business world. For some, upgrading their IT infrastructure might mean hiring a new employee, something that we can assist with on the financial side.
Experts say that small businesses should strive to embrace this new AI technology, and encourage them to implement such software as soon as possible. Not doing so, they say, may mean that your business could be at threat from other companies that do incorporate AI. Regardless of the size of your business, AI could help to make your company work more efficiently, thus potentially increasing your revenue.
How can Berley help?
With all that AI assistance in your business, Berley can provide the human touch. We provide small businesses with expert financial advice that can help you make the most out of your resources. Our services are tailored to your specific needs and include a range of accounting and tax advice that aim to take away the stresses of having to deal with complicated forms alone.
Whether you are interested in branching out overseas or remaining in the UK, we can help you with developing business plans and can even assist you in making sensible investments. We work with the future of your business in mind and pride ourselves on having the knowledge to assist you in all financial aspects of your business. Since we specialise in helping small businesses, you can be sure that we always aim to do what’s best for you and your company.
Get in touch
To find out more about how Berley can help you with your accounting and tax needs, call us today on 020 7636 9094.
Importance of cyber security for SMEs
Did you know almost a quarter of SMEs infected by ransomware have to cease their operations immediately?
What is ransomware?
Ransomware is a computer virus which encrypts your files (photos, videos, database and documents) and won’t release them unless you pay a ransom. This ransom is paid in the virtual currency Bitcoin. The attackers usually ask for the Bitcoin ransom to be paid within a time frame or they will release or destroy the data they have taken hostage.
Why is cyber security so important?
Ransomware and other forms of cybercrime is on the rise. Different types of attacks make it difficult to keep up.
Malwarebytes conducted research recently and discovered that over a third of businesses with less than 1,000 employees had been affected by ransomware in the last year. 22% of those attacked were affected so severely they were forced to cease their operations immediately.
Obviously, as a business owner you wouldn’t want that to happen to your business. Your business is your livelihood and it isn’t easy to restart a business that has had to cease operations. Berley understands how important the business is to its owner and so we’ve made a list of ways to protect your business from cyber attacks.
Attend a seminar or two - this is a good way to learn about cybersecurity and how to protect your business. Make sure you make this a trip for all employees in your business. If you all take notes and compare them afterwards, you could all learn how to protect the business in the cyber world.
Install security software - even though there isn’t a software that can keep your business 100% safe, installing anti-virus software can protect you from the more common and basic threats. Cyber criminals are capable of creating new ways to infiltrate a business so keep in mind it may take a while for your software vendor to include the new method to their anti-virus definitions.
Hire an IT security employee - if you have the budget for it, hiring someone to internally work on protecting your business is a great way to protect your business. They will be able to notice all things that you might miss.
Hope for the best, prepare for the worst - you can do everything you possibly can and still be infected with ransomware. Be prepared for the worst and have backups of your data somewhere separate and safe. One option is to save it somewhere in the Cloud as data and documents can be restored if lost or destroyed in the Cloud.
Berley like to encourage entrepreneurship and so we want those who are following their entrepreneurial dream to stay safe. For financial advice on your business, call us on 020 7626 9094 today.
Financing your business in 2017
Starting up a business has its challenges; formulating a business plan, sorting out the necessary paperwork, and securing funding to get your ideas off the ground can all be a hassle.
At Berley, we try to reduce the stress of owning a business so that you can concentrate on doing the things you love. As part of our comprehensive service, we can help you apply for and secure funding that will allow you to see your business grow.
Government funding
2017 has been a year of uncertainty thus far, with official lenders, such as banks, more reluctant to invest in a small business for fear of not seeing a return on their investment. However, the British Business Bank, which is government-owned, has promised to maintain funding for small businesses to guarantee that those who need a helping hand have the opportunity to reach up and grab one.
In January of this year, the government announced that they would be providing £40 million to help small businesses across the UK. With £40 million already invested in 2014, and a £20 million investment made in 2013 through the Business Finance Partnership, the UK government is keen to show their support for small businesses by helping them to capitalise on new opportunities.
Speedy service
These government backed business loans can be applied for through the online lending platform, Funding Circle. Funding Circle provides a quick and easy way to help small businesses get what they need, with the application taking as little as 10 minutes to complete. A final decision on the loan request is then given within two working days, and if successful, you can have access to the funds within the week.
In the past, business had to rely on banks to give them the support they needed. Often, these bank loan requests take a long time to process, and they require a lot of inconvenient paperwork. The quick access to funding that Funding Circle provides can mean that you don’t have to wait months before you can start making important decisions for your business. You can act straightaway, which may mean the difference between success and failure in the fast paced business world.
How can Berley help?
Berley are chartered accountants who specialise in helping small businesses reach their potential. We offer expert advice to enable you to get the most out of your business plan and we’ll be with you every step of the way. Our aim is to ensure that you, as an entrepreneur, know how to manage your accounts and are able to deal with any tax issues you may have.
As well as all this, we can provide you with information about the funding options that are available to you, and even support you with making the right decision for your business. Whether you would like to apply for a government backed loan, or you’d just like some advice on other types of funding available to you, we can help you make that next step in securing your positive future.
If you’d like some more information on how we can help you and your business, call us on 020 7636 9094 now.