With the summer holidays on the horizon you may be thinking it would be useful to keep the youngsters gainfully employed. It’s long been a small business tradition to bring other members of the family into the business. It makes economic sense and can be a real benefit to business. But how is that done without getting into trouble with the tax man?
Here come the summer holidays and taking on additional staff to help at peak seasons is a good way to handle high demand, and allow young workers the opportunity to gain work experience. However, there are a few things you need to consider before implementing this strategy, let’s take a look.
As businesses grow they can go off track. Demands on business owners are great and there is a danger that you deal with the ‘tip of the iceberg’ rather than the underlying organisational issues. So my advice is that you stand back, and have an objective view of your business.
Step one of Making Tax Digital (MTD) is that from April 2019, sole trade and partnership businesses with turnover exceeding £85k will have to send their VAT Returns digitally. This means all the transactions, not just the summary figures, must be sent to HMRC via the internet. So how is this to be done?
From 6th April 2017 there were two new reliefs of £1,000 to cover trading income and property income. Although mainly designed to keep individuals with small amounts of un-taxed income out of the tax return administration, these reliefs are available to business owners.
Until recently ISA’s were a popular investment because the returns, whether dividends, gains or interest, are tax free. However, this sometimes was at the cost of reduced returns and now there are a wider range of reliefs to reduce tax.