MAKE,GREAT,FIRST,IMPRESSION,Ac DIY MAKE A GREAT FIRST IMPRESSION!


If you're a parent looking for a one of a kind way to store toys, there are a plenty of options. From large storage systems to a toy box that can double as a blanket trunk once the children are grown, parents can likely find the right system When floating floors are made they are placed as planks which are clicked on top of each other. The costs of installing floating floors might be higher but the actual time taken for installing the floor is fairly short and can be done by alm


According to a new survey carried out by Alliance & where ID_NUM=9270;Leicester, one in five small business owners view tax astheir greatest concern. The Chancellor has announced in hislast budget that companies with profits below œ10,000 willnot have to pay any corporation tax with effect from 1 April2002. The question to be asked is: does that announcementmake incorporation a more attractive option compared tobeing a sole trader?The answer is that from a tax point of view, it isadvantageous to trade through a limited company as longas the income is drawn from the company by the owners asdividends from their shares and the amount of dividendsdrawn is restricted below the 40% band rate (i.e. œ31,063for tax year 2002/03). That way, the owners have no furtherpersonal tax ("income tax") to pay. Moreover, dividends arenot subject to national insurance contributions. This isexcellent news of course. But, if dividend income fallswithin the higher rate bracket of income tax (i.e. aboveœ34,515), they will be taxed at 22.5% on the excess, whichof course will increase the tax burden. The company profitsare subject to corporation tax rates. Those are lower thanincome tax rates.The most catastrophic scenario is when the director takeshis reward from the company as salary. Then his/her salaryis taxed at income tax rates (like a sole trader's income).That is because, unlike sole traders, the tax system treatscompanies as separate from their owners because a company isa separate legal entity. The problem is that the incometaxes are higher than corporation tax rates. On top ofthat, they will be subject to employee and employer nationalinsurance contributions, which of course increase the taxburden and render his position worse than even anunincorporated business ("sole trader"), because NIC Class 1on payroll are higher than NIC Class 2 paid by selfemployed.In contrast, a self employed person ("sole trader") is taxedat income tax rates on the profits from his business, whichare added to his other sources of income. As it has alreadybeen mentioned, income tax rates are overall higher thancorporation tax rates. On top of income tax, nationalinsurance contributions class 4 are payable on the businessprofits within a specified band (7% on profits betweenœ4,615and œ30,420). National insurance contributions Class 2are also paid by self-employed people, although those arelower than those payable by company directors on theirsalaries.To illustrate the above, let's take a simple example. Wehave a limited company and a sole trader. They both makeœ60,000 profits each in the tax year 2002/03. We assume thatthe company director takes a salary equal to the amount ofhis personal allowances (untaxed income) of œ4,615 and thebalance as dividends. The company will pay corporation taxat 19% equal to œ10,523 and nothing else. The sole traderwill pay income tax œ16,542, National insurance Class 2 œ104and National insurance Class 4 œ1,806. Total œ18,452. Thebottom line is that the person that has incorporated hisbusiness into a limited company will make a tax saving ofœ7,929 compared to a sole trader! Isn't that fantastic?Somebody might be wondering: why is this entire happening?The official explanation is that, this government, to helpthe economy grow, encourages people to leave as much profitswithin their businesses to be reinvested, instead of beingtaken out and spent.The "unofficial line" is that, as a matter of fact, foryears the Inland Revenue has tried to reclassify theself-employed. The 1% in NIC hike on staff salaries abovethe NIC threshold from next April adds to both theemployees' and employers' tax burden and may more thanoffset the saving from the corporation tax zero rate on thefirst œ10,000 of profits.Aren't there any other matters to consider in decidingwhether to incorporate or not?Higher administration costs to comply with company law,payroll and bookkeeping is one factor. Another issue ispension planning. Extracting profits out of the company asdividends rather than salary means that there will be no"net relevant earnings" and therefore pension contributionscan't be made. But the advent of stakeholder pension planshas meant that contributions up to œ3,600 per year can bemade without the need for any earnings. If a person does notwish to transfer funds in existing plans into stakeholderbecause of high charges, there is a way out: the best netrelevant earnings (i.e. salary) in five consecutive yearscan be used for making contributions for the next fiveyears, even if there were no salaries in the remainder fouryears. It is comforting to know that entitlement to basicstate pension is not affected by taking a salary from thecompany at the level of a person's personal allowances i.e.œ4,615.Furthermore, an individual may decide not to bother withpension plans and instead invest in ISA. Often, these can bemore efficient than pensions but that's beside the scope ofthis article. If that option is taken, no salary isnecessary.Another factor is business motoring. It might be taxadvantageous for an unincorporated business that owns manycars not to incorporate because if these cars have someprivate use there will be benefits in kind taxed on theusers. These are generally higher than the straightapportionment between private and business for all carrunning costs in the case of sole traders.The conclusion is that there can be considerable tax savingswaiting the sole trader who decides to go down theroad to incorporation. But, one needs to proceed withcaution and careful planning. And don't forget the biggestadvantage of incorporation, which is Protectionfrom Personal Liability. Incorporating is one of the bestways to protect a business owner from personal liability.Shareholders of a company are generally not liable for theobligations of the company. Creditors of a company may seekpayment from its assets, but not the assets of theshareholders. This means that business owners may engage inbusiness without risking their homes or other personalproperty.Thank you for taking the time to read this Article. I hopeyou've found it useful. If you have, please drop me an emailand let me know what you think.You can email me [email protected], you can visit our website athttp://www.tax-accounting-london.info and read a series ofother full length articles that present the complete pictureon a variety of interesting topics.If you would like to know how to save tax and make sure thatmore of your hard earned cash stays with you to expand yourbusiness and increase your profits, we have a Free SpecialReport addressed to small businesses either starting up oralready in business. This Exclusive Free Special Report isavailable automatically when you subscribe to our regularseries of Free Newsletters on finance advice and taxplanning by visiting our subscription area on our websitewww.tax-accounting- london.info. It is complied from reallife situations dealing with small business tax affairs forover 10 years and it is loaded with down-to-earth advice andpractical, understandable examples.LEGAL NOTICEWhilst every care has been taken in the preparation of thisarticle, the author cannot accept responsibility for anyerrors or omissions. Proper professional advice should betaken at all times.We retain copyright for the contents of this article. Anyunauthorized copying or onward distributions are prohibitedwithout our consent. Article Tags: Limited Company, National Insurance, Sole Trader

MAKE,GREAT,FIRST,IMPRESSION,Ac

DIY

Soil testing as important as oil changes are for engines

When you have a vehicle that you are driving a lot, you know that oil changes are something that you need to do on a regular basis to keep your vehicle in good condition. This is the same as soil testing. Soil testing ensures that your soil ...

DIY

Foam bitumen - Sustainable Eco-friendly Roads

Dont you think it will be great if we have eco-friendly roads that will be sustainable and durable as well? If there are roads that are not harming the environment anymore? This isnt just something that is for the future. There are countrie ...

DIY

Soil Testing: It’s all about that soil

Soil testing. The success of your harvest is all about the quality of the soil. And, the only way to ensure that you have the best soil, is to know what your soil needs.Many dont think that soil testing is needed. They are only adding nutrie ...

DIY

Mobile Work and Aluminum Platforms That Fit Your Needs

There are many domestic, trade and industrial applications where an extension ladder is the best and safest choice. Although many people try to make do with tall stepladders, most don't know it's hazardous to stand on the top work platform o ...

DIY

Truck Access Platforms That suitable for you

Looking to plan and specialist a few kinds of platforms that give your workers safe access to single or multiple hatches on an assortment of Tank Trucks. In the event that your administrators are as of now getting to the highest points of tr ...

DIY

How to Choose a Custom T-shirt Printing Company?

Be it a family event, a noble cause, company event, or personal interest, wearing custom t-shirts gives importance to it. The fame of personalized shirts is soaring high with this. More and more men and women are wearing custom shirts while ...

DIY

Moving Jurney By Interm Packers and Movers

They perceive the ins and outs of transferring so it's a protected option to allow them to deal with your whole belongings as a result of they'll do it proper and do it with care. When you might be in a predicament corresponding to not havin ...

DIY

Use a Vacuum Excavation for an Unearthing Project

You may very well get yourself that you have to utilise a vacuum excavation for an uncovering venture. This can be anything from disposing of a channel that is blocked or to penetrate a gap in the ground without harming the encompassing zone ...

DIY

Detailed Information about Non-Destructive Digging

At the point when you consider digging a gap in the ground, the principal thing that rings a bell is this ordinarily winds up a total wreckage around the gap.Be that as it may, there is one technique called non-destructive digging. This is t ...

DIY

A Complete Guide to buying a Vacuum Truck

Buying a vacuum truck are something that you should consider on the off chance that you are searching for another business opportunity. There are a few advantages to having this sort of business in the event that you have a completely prepar ...

DIY

Best Methods of Underground Cable Detection!

While we are continually fabricating and remolding properties, unearthing is unavoidable and can be attempted for an assortment of reason. What we are going to discover right now while playing out an exhuming, you should discover any undergr ...

DIY

Vacuum Trucks Can Deal with Exact Unearthing Needs!

Some intriguing data about vacuum trucks. That it will have the option to give in your precise excavation and drilling needs. You may imagine that those enormous trucks won't have the option to penetrate precisely, without harming anything a ...

DIY

Utility Locators - Locating Underground Cable

There are numerous reasons why it is imperative to locate underground cables. Also, if the Cables can't be found effectively, the fiasco will be immense and can be destroying.This is the reason you have to ensure that you know however much a ...

DIY

Important Information about Hydro Excavation

Hydro excavation is the way toward expelling or moving soil with pressurized water. An air movement or vacuum is then used to move the dirt or trash to a garbage tank. This takes into account a non-damaging and progressively exact approach t ...

DIY

Foam Bitumen - Lab Tests for Pavement Construction

Foam Bitumen. Something that you probably won't have found out about. All in all, for what reason would it be advisable for you to consider what the different lab tests on bitumen for asphalt development are? But on the off chance that you a ...

DIY

Soil Testing & analysing Is Worth the Effort

There's nothing of the sort as a free lunch, even in the nursery. Contingent upon your soil's local ripeness and what you develop, your plants may perform for quite a long time without requiring extra manure. Be that as it may, at some point ...

DIY

Soil Testing For Construction

Soil testing is a significant piece of building and street development. Truth be told, no development task can continue without first ensuring the soil can bolster the heap. Subsequently, the reason for soil testing for construction is to de ...

DIY

Soil Testing Services for Construction Projects

Regardless of whether you are building your fantasy home, making an expansion to your current home or building up a business property, there is one thing that is of most extreme significance, soil testing. There are various building consulta ...

DIY

Property Insurance

Property is Peoples HopeIt is not wrong to say that property is a hope and main aim of every person. People put all their efforts and then purchase some property for time ahead reliability and safety. This property is result of a long term s ...