Call for Assistance: 02033 259 341
Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

It could be time to close those unnecessary limited companies House - New Associated Company Rules

August 17, 2023

Consider the possibility of closing unnecessary limited companies, in light of the New Associated Company Rules introduced by HMRC.

As of April 2023, there has been an upward adjustment in corporation tax rates for profits exceeding £50,000 per year. The rate escalates to 25% for profits over £250,000. For your convenience, you can access our free calculator here https://www.spondoo.co.uk/corporation-tax-calculator-post-april-2023.

As part of this tax rate increment, HMRC has implemented rules for companies under the control of the same individuals. These rules stipulate that the £50,000 and £250,000 thresholds mentioned earlier are to be shared among all associated companies when calculating the corporation tax liability. Consequently, if you possess multiple companies categorised as associated, the corporation tax limits for each company will be reduced, requiring you to pay taxes earlier.

Some of the test to determine if you have associated companies include:

  • Financial interdependence – Do the companies extend loans to each other?
  • Economic interdependence – Do the companies share clients or rely on each other’s economic activities?
  • Organizational interdependence – Do the companies share equipment, employees or premises?

It is crucial to note that foreign controlled companies can also fall under the scope of associated company rules.

If you possess more than one company, it would be prudent to discuss the implications of this with us.

We’d love to hear from you. Reach out to us today.

more tips

Can You Claim Food as a Business Expense?

The golden rule when claiming business expenses is that the cost must be “wholly and exclusively” for business purposes. So, where do you stand when it comes to food and drink? After all, everyone needs these things to survive. When does it become an allowable expense? Read on to find out when your business can claim food and drink as an expense.
READ MORE

Self-Employed National Insurance Class 2 and Class 4 Rates

If you are sixteen and over, self-employed (sole trader or in a partnership) and making a profit befitting the ‘small profits threshold’, you are liable to pay national insurance.
READ MORE

Key UK Personal Tax Year Dates & Deadlines 2021/2022

Are deadlines creeping up on you? Spondoo is here to ensure you keep on top of things and take control again. These are the important dates you should take note of.
READ MORE

How To Set Up A Limited Company 

A Step-by-Step Guide  This is an easy-to-understand, step-by-step guide, to opening a successful limited company. But before we dive in, let’s check the legality surrounding it. 
READ MORE

Accountants in Haslemere, Surrey

We are qualified accountants providing personal and professional services for start-ups, established companies and individuals in and around the Haslemere area in Surrey. With the rise in technology, we have embraced the digitisation of accounting using efficient digital accounting tools to offer reliable services to our customers. Our goal remains to get our clients the best accounting and taxation services at the most affordable rates.
READ MORE

Onsite Canteen and Lunch Vouchers - Are They Taxable?

The provision of food and drink to an employee by their employer is a lovely thing to do. Eventually, it promotes teamwork, loyalty, a sense of belonging and even improves productivity. Taking it at face value makes it look like a simple act of kindness. However, unless it is done correctly, it can cause tax and national insurance compliance issues for the employer.
READ MORE
1 2 3 43
LEARN MORE
What the service includes, and how much it costs?
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
© Copyright 2023 - Spondoo - All Rights Reserved
How, can we help?
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram