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Bird & Co Newsletter – June 2016

Bird & Co Newsletter – June 2016

By In Announcements, Business On May 31, 2016


Bird & Co Newsletter – June 2016

 

Taxation

Written by Pete Bird for the Yaxley , Stanground and Hampton Gazette’s June 2016

Question: If I own a property, can I assign all of the income to my children but retain the ownership of the property? The children would then pay zero income tax as the rental income is within their personal allowance.

Answer: You can do so, but it will not be effective for tax purposes – you will still be liable to income tax on this rental income. Even if you were to transfer the property ownership to them, as long as they are under 18 and unmarried and the income is more than £100 per year, you will still be liable to income tax on this income. This is due to the “settlements” rules.

appointed-as-a-director

Directors’ Liabilities and Protections:

Company directors in limited companies may be held personally liable for the actions of the company, including other directors, “shadow directors” and non-executive directors. Directors face many risks and liabilities that may result in penalties, fines, disqualification and imprisonment for acts and omissions not only committed by themselves, but also by others. The Companies Act 2006 lays down seven statutory duties of directors which are owed to the company and also to shareholders. Only shareholders are protected against personal loss by limited liability companies – not directors. All directors should therefore be aware of their duties and responsibilities and avoid illegal acts, acting beyond their powers and failing to use sufficient skills and care.

Practical Tip:

File returns and pay tax on time to avoid personal liability for company tax bills and NICs. Have insurance in place to protect the director acting on company business.

Dates to Remember:

1 June 2016 – Due date for Corporation tax for companies with an accounting period ended 31 August 2015.

Monthly Dates:

19th of the Month:

Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS monthly return
to HMRC.

22nd of the Month:

Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.

 

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