?? Weekly Wrap - Your Business Finance News

Hey there, business owners! We've got some essential updates for you in this week's newsletter. Grab a cup of coffee and dive into the latest on taxes, childcare support, VAT, and closing down your limited company.

Tax When You Sell a Property

?? Capital Gains Tax (CGT): Keep an eye on your wallets! The annual exempt amount for CGT is currently a cool ￡6,000, but come April 2024, it's shrinking down to ￡3,000.

?? CGT Rates: For most folks, CGT is a flat 20%. However, if you're in the basic tax bracket and make a small capital gain, you'll only owe 10%. Once your taxable income and gains exceed the higher rate threshold, it's 20% for the excess.

?? Residential Property: Selling your home? No worries! But for other property sales like buy-to-let, business premises, land, or inherited property, CGT is in play.

? Deadline Alert: When selling residential property, you've got 60 days to complete a CGT return and make the payment. Don't miss the deadline!

?? Business Assets Relief: There are some sweet reliefs available for CGT on the sale of qualifying business assets. Check 'em out!

Tax-Free Childcare

?????? Back to School: As the kids head back to school after the summer break, remember that Tax-Free Childcare (TFC) is here to help with approved childcare expenses.

?? TFC Benefits: Get a government top-up of ￡2 for every ￡8 you contribute, up to ￡10,000 per child per year. That's up to ￡2,000 in savings for each child (or ￡4,000 for disabled kids up to 17).

?? Who's Eligible?: TFC is open to working parents, including the self-employed, and even those on parental and sick leave. Just meet the minimum work hours and wage criteria.

VAT Deregistration

?? Closing Up Shop: If your VAT-registered business is stopping taxable supplies, selling up, or making significant changes, VAT deregistration might be in the cards.

?? Deregistration Limit: Currently set at ￡83,000, but be ready to show why your turnover will drop below this threshold.

?? Late Claims: Don't forget, a deregistered business can still make late claims for input tax on services received while registered.

Closing a Limited Company

?? Company Closure: If it's time to bid farewell to your limited company, there are steps to follow.

?? Solvent or Insolvent?: The process varies. If it's solvent, you can get it struck off the Register or opt for voluntary liquidation.

?? Protect Your Assets: Directors, ensure all company assets and liabilities are sorted before dissolution. Don't leave anything hanging!

??? Dormant Option: If you're not ready to say goodbye completely, consider keeping your company dormant. Costs are involved, but it might be worth it.

That's it for this week's wrap, folks! Stay tuned for more financial insights, and remember, we've got your back. Have a fantastic week ahead! ??

Best regards,

MJB Avanti