How businesses & sole traders can claim tax relief on loss making businesses

With the Self Assessment deadline less than a month away, a lifeline has been handed to struggling businesses and sole traders who are yet to complete their tax returns.

Tax preparation specialist David Redfern, Managing Director of DSR Tax Claims Ltd, has issued his timely advice on claiming tax reliefs for loss making ventures, especially those businesses in their first years of trading.

It is not uncommon for a newly-formed business to run at a loss in its initial years of trading, due to the cost associated with breaking into a market as well as finding and retaining a steady stream of customers, including start-up costs such as advertising and publicity, premises and the initial administrative costs of setting up a business.

However, many small business owners and sole traders may be unaware of the available tax reliefs open to them to allow them to offset their losses against past or future profits, including capital gains. Redfern commented “In a tough trading environment, it is imperative that a fledgling business uses all tax relief options open to them in order to maximise their profitability and commercial advantage.

Larger businesses and corporations are well-equipped with accounting advisors who will inform

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Getting a mortgage with bad credit – is it possible?

Buying a home in today’s market can seem particularly hopeless for people with poor credit scores – and that’s before you have to cough up large deposits.

Even people with exceptional credit histories can be tripped up when lenders run through affordability, earnings and monthly outgoings with a fine-tooth comb and identify red flags.

There are stories of people being rejected because they’ve never been in debt – so even though they’ve kept their noses clean, because they’ve never had any form of credit, there just isn’t enough information for lenders to lend.

Wait, before you go clicking off this article, it’s not all doom and gloom – these factors aren’t a reason for people to simply abandon their homeowner dreams. There is still hope; even if you do have a poor credit score, CCJs, missed payments, or little to no credit history, and we’re going to share some pointers with you.

If you’ve already been rejected, do not give up straight away

Each lender applies differing criteria when lending, and with hundreds of lenders available to choose from in the UK, it really is worth seeking some expert independent advice. What one lender may find unacceptable, another can be

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What do you need to know about tax evasion legislation?

A year on from the introduction of tax evasion laws Martin Griffiths, partner in the Tax & Structuring team at Addleshaw Goddard, warns a lack of awareness could be putting businesses at risk.

On 30 September 2017, a new corporate offence came into force to prevent the facilitation of tax evasion. It brought with it significant implications for businesses across the country.

The legislation introduced a law whereby any business can be prosecuted if its employees, agents or even contractors evade tax – and the business is deemed to have taken insufficient preventative measures.

While this new law could have profound consequences for businesses that contravene it, many have not taken action. This may be because, in a world where capacity and resource are constrained, the legislation has simply passed them by while they concentrated on other areas. It’s possible that those aware of the legislation are sitting back – awaiting the first major prosecution – before deciding to take action to protect themselves.

However, by failing to act businesses are putting themselves at risk. Falling foul of the rules is punishable by unlimited fine and potential criminal sanctions. As if this wasn’t enough, in our experience purchasers of companies

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How you can reap the financial rewards from tax relief on your patents

SMEs are potentially missing out on a golden opportunity to financially benefit from their intellectual property. Leyton UK MD William Garvey explains.

Spending on R&D in the UK lags behind the rest of Europe. The most recent ONS figures revealed the UK had invested 1.69% on R&D as a proportion of GDP, falling well below the European Union (EU-28) provisional estimate of 2.07%.

The Government is keen to change this and has an ambitious target of 2.4% of spending by 2027. To encourage innovation it has set up tax relief schemes to boost investment. The R&D credit scheme has been around since 2000 and has achieved increasing awareness among SMEs. However there is far less awareness for another scheme, ‘the patent box’, with SMEs potentially missing out on a golden opportunity to benefit from their IP.

The Patent Box regime is an incentive aimed at attracting R&D investment leading to the creation and active management of patentable intellectual property (IP). Patent Box is in addition to the Research and Development (R&D) tax credit scheme and can be claimed simultaneously. The tax benefits are clear. It effectively allows qualifying companies to apply a 10% rate of corporation tax to all profits

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4 tips for anyone starting a new property development business

The British have an ongoing love of property with the phrase ‘an Englishman’s home is his castle’ still resonating.

There is a continuous flow of TV shows too that feed our knowledge and inspiration with ‘Grand Designs’, ‘Selling Houses’, ‘Old House, New Home’, ‘Location, location, location’, and so on.

As well as inspiring the next generation of homeowners to make the most out of their investment, there is also a growing breed of entrepreneurs with a desire to make it their day job.

But is being a property developer that easy?  Like most things in life, if it were easy then everyone would be doing it, and so our top 4 tops for anyone starting a new property development business may help.

Have a Plan

All businesses need a clear strategy that will help focus on the key income generating issues as well as the things that might go wrong.  There are plenty of online resources that will help in creating a business plan, but the key elements will include:

  • Business objectives – where you are going to invest, types of property, size of project, etc
  • Your mission statement and ethos – what is going to make your business stand

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New to trading? How to avoid rookie errors

Financial markets trading is growing in popularity in all corners of the globe in recent years and it is likely you will know someone who has embarked upon their journey.

For those who “get it right” there are many advantages including an additional income stream, flexibility and, in some cases, tax-free winnings from the market.

When you begin your trading journey, you will make mistakes. As harsh and hard as this may sound, it is the truth, and it is important to be aware that you aren’t going to be an exception, but instead you’ll be the rule. In fact, it happens so often right at the start that over 90 percent of first-time traders choose to give it all up and never trade again.

But there is something you can do to prevent this from happening if it hasn’t already, and stop it from happening again if it already has. It’s quite simple: you need to know what the differences are between those who are successful in their trading endeavours and those who aren’t. Knowing this small but vital piece of information will lead you down the right path, and help you to make more of your trading portfolio.

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