When

you

can

make

decisions

for

someone

Someone

can

choose

you

to

make

and

carry

out

certain

decisions

on

their

behalf

They

can

ask

you

to

do

this

now

for

example

while

they

’re

on

holiday

in

the

future

for

example

if

they

lose

the

mental

capacity

to

make

their

own

decisions

You

can

also

apply

to

a

court

to

help

someone

make

decisions

if

they

do

not

have

mental

capacity

now

This

guide

is

also

available

in

Welsh

Cymraeg

When

someone

can

choose

you

A

person

must

have

mental

capacity

when

they

choose

you

for

short

term

or

long

term

help

with

decisions

Short

term

help

You

can

be

appointed

to

make

decisions

about

someone

’s

money

or

property

for

a

limited

time

for

example

while

they

’re

on

holiday

They

can

appoint

you

with

either

a

lasting

power

of

attorney

for

property

and

financial

affairs

they

’ll

say

when

it

starts

and

ends

an

ordinary

power

of

attorney

you

can

only

use

this

while

they

have

mental

capacity

To

make

an

ordinary

power

of

attorney

the

person

who

appoints

you

needs

to

buy

a

document

from

a

newsagent

or

use

a

solicitor

Long

term

help

You

can

be

appointed

with

a

lasting

power

of

attorney

to

help

someone

make

ongoing

decisions

about

either

or

both

money

and

property

starting

at

any

time

or

when

they

do

not

have

mental

capacity

health

and

welfare

starting

when

they

do

not

have

mental

capacity

You

can

also

help

someone

with

ongoing

decisions

using

an

enduring

power

of

attorney

made

before

October

When

you

apply

to

a

court

Apply

to

a

court

to

help

someone

without

mental

capacity

with

one

off

or

long

term

decisions

Check

if

someone

already

has

an

attorney

or

deputy

to

help

them

with

decisions

before

you

apply

If

they

do

have

an

attorney

or

deputy

ask

them

for

help

instead

One

off

decisions

Ask

the

Court

of

Protection

to

make

a

one

off

decision

about

an

issue

that

’s

not

urgent

an

urgent

or

emergency

decision

about

something

that

puts

them

at

risk

If

the

decision

is

about

medical

treatment

you

must

consider

any

living

will

advance

decision

that

the

person

has

made

Long

term

help

Apply

to

the

Court

of

Protection

to

help

someone

long

term

with

decisions

about

either

or

both

money

and

property

as

a

property

and

financial

affairs

deputy

health

and

welfare

as

a

personal

welfare

deputy

How

to

make

decisions

As

someone

’s

attorney

or

deputy

you

must

give

them

all

the

help

they

need

to

make

each

decision

before

deciding

they

do

not

have

mental

capacity

to

make

that

decision

themselves

make

any

decisions

in

their

best

interests

make

decisions

that

restrict

their

human

and

civil

rights

as

little

as

you

can

Helping

someone

make

decisions

Give

the

person

all

the

information

they

need

to

make

a

decision

Make

it

easy

for

them

to

understand

and

weigh

up

the

information

for

example

by

allowing

plenty

of

time

choosing

a

time

that

suits

them

best

talking

in

familiar

surroundings

for

example

their

home

removing

distractions

such

as

background

noise

explaining

things

a

different

way

in

pictures

or

sign

language

for

example

Suggest

different

ways

for

them

to

tell

you

their

decision

if

they

can

not

tell

you

in

words

for

example

by

pointing

squeezing

your

hand

blinking

or

nodding

Making

decisions

in

someone

’s

best

interests

Any

decisions

you

make

for

someone

must

be

right

for

them

in

their

best

interests

Take

into

account

what

they

would

have

decided

if

they

could

their

past

and

present

values

and

wishes

including

moral

political

and

religious

views

Do

not

make

assumptions

based

on

their

age

gender

ethnic

background

sexuality

behaviour

or

health

It

can

help

to

write

down

what

the

person

has

told

you

is

important

to

them

look

at

other

things

they

wrote

down

or

recorded

such

as

household

budgets

or

home

videos

speak

to

friends

family

or

colleagues

who

know

them

well

consult

anyone

involved

in

their

care

for

example

personal

carers

or

care

home

staff

notice

their

behaviour

and

reactions

this

can

tell

you

about

wishes

and

feelings

that

a

person

can

not

express

in

words

Human

and

civil

rights

Your

decisions

must

restrict

the

person

’s

human

and

civil

rights

as

little

as

possible

Citizens

Advice

has

information

about

human

and

civil

rights

You

can

never

make

decisions

on

someone

’s

behalf

about

certain

things

such

as

voting

relationships

for

example

consenting

to

sex

getting

married

or

getting

divorced

Follow

the

Mental

Capacity

Act

code

of

practice

when

you

make

decisions

Difficult

decisions

and

disagreements

Consult

the

person

as

well

as

their

family

friends

and

carers

Including

everyone

in

a

best

interests

meeting

can

help

you

reach

agreement

If

you

can

not

agree

you

can

get

advice

about

how

to

reach

agreement

from

the

Office

of

the

Public

Guardian

get

help

from

an

advocate

who

can

represent

the

person

’s

best

interests

find

a

mediation

service

get

help

from

the

social

services

team

at

your

local

council

if

it

’s

a

disagreement

about

the

person

’s

care

ask

the

Court

of

Protection

to

decide

if

it

’s

a

major

disagreement

about

a

serious

issue

Checking

mental

capacity

A

person

may

not

have

mental

capacity

because

of

a

problem

with

the

way

their

brain

functions

for

example

a

serious

brain

injury

an

illness

such

as

dementia

severe

learning

disabilities

Mental

capacity

can

come

and

go

for

example

with

dementia

and

some

mental

illnesses

A

person

can

also

recover

mental

capacity

for

example

following

a

severe

stroke

What

you

must

check

You

must

check

that

a

person

has

mental

capacity

to

make

a

decision

at

the

time

it

needs

to

be

made

They

can

make

the

decision

if

they

can

understand

the

information

they

need

for

example

what

the

consequences

will

be

remember

the

information

for

long

enough

to

make

the

decision

weigh

up

the

options

and

make

a

choice

communicate

their

decision

in

any

way

for

example

by

blinking

or

squeezing

a

hand

You

can

not

decide

a

person

lacks

mental

capacity

because

you

think

they

’ve

made

a

bad

or

strange

decision

If

the

person

can

not

make

a

decision

at

a

certain

time

they

may

still

be

able

to

make

it

at

another

time

make

decisions

about

other

things

Do

not

make

a

decision

for

them

if

it

can

wait

until

they

can

do

it

themselves

Get

help

checking

mental

capacity

You

can

ask

the

person

’s

doctor

or

another

medical

professional

to

assess

their

mental

capacity

Follow

the

Mental

Capacity

Act

code

of

practice

when

you

check

mental

capacity


Getting

a

financial

agreement

When

you

divorce

or

end

a

civil

partnership

you

and

your

ex

partner

need

to

agree

how

to

separate

your

finances

This

includes

deciding

how

you

’re

going

to

divide

pensions

property

savings

investments

You

might

get

things

like

a

share

of

your

your

partner

’s

pension

including

State

Pension

or

private

pension

plans

regular

maintenance

payments

to

help

with

children

or

living

expenses

You

can

usually

avoid

going

to

court

hearings

if

you

agree

how

to

split

your

money

and

property

The

rules

are

different

if

you

were

not

married

or

in

a

civil

partnership

You

’ll

still

have

to

agree

on

child

maintenance

payments

for

any

children

What

you

can

do

is

different

in

Scotland

and

Northern

Ireland

Making

an

agreement

legally

binding

If

you

and

your

ex

partner

agree

on

how

to

divide

money

and

property

you

need

to

apply

for

a

consent

order

to

make

it

legally

binding

Get

help

agreeing

You

can

use

a

mediator

or

get

other

help

to

resolve

issues

out

of

court

Get

the

court

to

decide

If

you

can

not

agree

on

everything

you

can

ask

a

court

to

make

a

financial

order

If

you

agree

It

’s

usually

more

straightforward

and

less

expensive

if

you

agree

how

to

divide

your

money

and

property

Get

help

agreeing

Making

your

agreement

legally

binding

To

make

your

agreement

legally

binding

you

need

to

draft

a

consent

order

and

ask

a

court

to

approve

it

If

your

agreement

is

not

legally

binding

a

court

can

not

enforce

it

if

there

are

any

issues

later

A

consent

order

is

a

legal

document

that

confirms

your

agreement

It

explains

how

you

’re

going

to

divide

up

assets

like

pensions

property

savings

investments

It

can

also

include

arrangements

for

maintenance

payments

including

child

maintenance

You

can

get

legal

advice

or

ask

a

solicitor

to

draft

a

consent

order

for

you

When

to

apply

for

a

consent

order

You

can

ask

the

court

to

approve

your

consent

order

if

you

’ve

started

the

paperwork

to

divorce

or

end

your

civil

partnership

It

is

usually

more

straightforward

to

divide

money

and

property

before

you

apply

for

the

final

legal

document

to

end

the

relationship

The

final

legal

document

is

the

decree

absolute

if

you

’re

divorcing

final

order

if

you

’re

ending

a

civil

partnership

You

can

divide

money

and

property

after

your

divorce

is

finalised

or

civil

partnership

has

ended

This

may

change

what

you

’re

entitled

to

get

and

you

may

have

to

pay

tax

on

it

How

to

ask

the

court

for

approval

You

and

your

ex

partner

have

to

draft

a

consent

order

sign

the

draft

consent

order

you

also

need

photocopies

of

the

signed

original

fill

in

a

statement

of

information

form

One

of

you

also

needs

to

fill

in

a

notice

of

an

application

for

a

financial

order

If

you

’re

ending

a

civil

partnership

or

legally

separating

send

the

signed

forms

and

copies

with

the

fee

to

the

court

dealing

with

your

paperwork

Keep

your

own

copies

If

you

’re

divorcing

send

the

signed

forms

and

copies

with

the

fee

to

You

may

be

able

to

get

help

with

court

fees

if

you

’re

on

benefits

or

a

low

income

There

’s

usually

no

court

hearing

A

judge

will

approve

your

consent

order

to

make

it

legally

binding

if

they

think

it

’s

fair

If

they

do

not

think

it

’s

fair

they

can

ask

you

to

change

it

How

much

it

costs

The

court

fee

is

Solicitor

fees

vary

depending

on

their

experience

and

location

They

usually

charge

per

hour

Get

help

agreeing

A

mediator

can

help

you

and

your

ex

partner

agree

on

how

to

split

money

and

property

without

taking

sides

Mediation

is

not

relationship

counselling

It

can

help

you

agree

on

how

you

’ll

divide

your

assets

including

pensions

property

savings

investments

Mediation

can

be

quicker

and

cheaper

than

asking

a

court

to

decide

for

you

You

need

to

attend

a

mediation

information

assessment

meeting

MIAM

before

you

start

mediation

Find

a

local

mediator

The

mediator

can

decide

mediation

is

not

right

for

you

for

example

if

there

’s

been

domestic

abuse

and

you

need

to

go

to

court

instead

How

much

it

costs

A

MIAM

is

usually

about

If

you

need

more

mediation

sessions

they

cost

more

and

fees

vary

depending

on

where

you

live

Check

if

you

can

get

legal

aid

for

mediation

Making

your

agreement

legally

binding

At

the

end

of

mediation

you

’ll

get

a

document

showing

what

you

agreed

This

agreement

is

not

legally

binding

If

you

want

a

legally

binding

agreement

you

need

to

draft

a

consent

order

and

get

a

court

to

approve

it

The

consent

order

can

be

based

on

what

you

agreed

in

mediation

If

you

need

more

help

agreeing

You

can

ask

a

legal

adviser

about

other

ways

to

resolve

issues

out

of

court

such

as

family

arbitration

or

collaborative

law

get

information

and

advice

from

Citizens

Advice

read

guidance

to

help

you

sort

out

finances

when

you

get

divorced

work

out

your

finances

with

a

divorce

and

separation

calculator

If

you

do

not

agree

on

everything

You

can

ask

a

court

to

decide

on

anything

you

have

not

agreed

on

Get

the

court

to

decide

If

you

and

your

ex

partner

can

not

agree

how

to

divide

your

finances

you

can

ask

a

court

to

make

a

financial

order

also

known

as

the

contested

route

or

an

ancillary

relief

order

This

means

the

court

will

decide

how

assets

will

be

split

Getting

the

court

to

decide

usually

takes

longer

and

is

more

expensive

than

if

you

and

your

ex

partner

agree

You

must

attend

a

meeting

about

mediation

before

you

can

apply

to

the

court

to

decide

except

in

certain

cases

if

there

’s

been

domestic

abuse

for

example

A

financial

order

will

describe

how

you

’re

going

to

divide

up

assets

like

pensions

property

savings

investments

It

can

also

include

arrangements

for

maintenance

payments

including

child

maintenance

When

to

apply

for

a

financial

order

You

can

ask

a

court

to

make

a

financial

order

if

you

’ve

started

the

paperwork

to

divorce

or

end

your

civil

partnership

It

is

usually

more

straightforward

to

divide

money

and

property

before

you

apply

for

the

final

legal

document

to

end

the

relationship

The

final

legal

document

is

the

decree

absolute

if

you

’re

divorcing

final

order

if

you

’re

ending

a

civil

partnership

You

can

divide

money

and

property

after

your

divorce

is

finalised

or

civil

partnership

has

ended

but

it

may

change

what

you

’re

entitled

to

get

and

you

may

have

to

pay

tax

on

it

How

to

apply

You

need

to

apply

for

a

financial

order

Send

copies

of

the

form

to

the

court

dealing

with

paperwork

in

your

area

to

divorce

or

end

your

civil

partnership

Keep

a

copy

for

yourself

You

can

hire

a

solicitor

to

help

you

apply

for

a

financial

order

from

the

court

After

you

apply

There

are

three

stages

the

first

appointment

a

short

hearing

with

the

judge

to

discuss

your

application

financial

dispute

resolution

FDR

appointment

to

help

you

agree

without

needing

a

final

hearing

you

might

need

more

than

one

appointment

final

hearing

if

you

’re

not

able

to

agree

this

is

when

a

judge

will

decide

how

you

must

separate

your

finances

The

court

will

send

you

and

your

ex

partner

details

when

the

first

appointment

will

be

This

is

usually

to

weeks

after

you

apply

Before

the

first

appointment

You

and

your

ex

partner

need

to

fill

in

a

financial

statement

for

a

financial

order

Form

E

to

show

a

breakdown

of

your

property

and

debts

This

includes

giving

an

estimate

of

your

future

living

costs

You

’ll

also

need

to

collect

documents

about

your

finances

for

example

rental

or

mortgage

agreements

pension

documents

loan

agreements

proof

of

your

salary

income

for

example

or

recent

pay

slips

details

of

personal

belongings

worth

more

than

for

example

a

car

or

house

contents

How

long

it

takes

It

depends

on

how

many

financial

dispute

resolution

appointments

you

need

if

you

need

a

final

hearing

There

can

be

several

months

between

the

appointments

How

the

court

decides

If

you

can

not

agree

a

judge

will

decide

how

assets

will

be

split

They

’ll

base

their

decision

on

how

long

you

’ve

been

married

or

in

a

civil

partnership

as

well

as

your

age

ability

to

earn

property

and

money

living

expenses

standard

of

living

financial

needs

and

responsibilities

role

in

looking

after

the

family

for

example

if

you

were

the

main

earner

or

caring

for

the

family

or

home

disability

or

health

condition

if

you

have

any

The

judge

will

decide

on

the

fairest

way

to

divide

the

assets

if

there

’s

enough

to

meet

everyone

’s

needs

They

will

make

arrangements

for

any

children

first

especially

their

housing

arrangements

and

child

maintenance

The

reason

for

the

divorce

or

dissolution

is

not

taken

into

account

The

judge

will

usually

try

to

arrange

a

clean

break

so

everything

is

shared

out

and

you

no

longer

have

any

financial

ties

to

one

another

How

much

it

costs

The

court

fee

is

Solicitor

fees

vary

depending

on

their

experience

and

where

you

live

They

usually

charge

by

the

hour

How

much

you

pay

in

total

depends

on

how

many

financial

dispute

resolution

appointments

you

need

and

if

there

will

be

a

final

hearing

You

can

get

legal

aid

to

help

with

court

costs

in

certain

situations

for

example

if

you

’re

separating

from

an

abusive

partner

Further

help

and

advice

You

can

get

information

and

advice

from

Citizens

Advice

read

guidance

to

help

you

sort

out

finances

when

you

get

divorced

find

out

more

about

how

to

apply

for

a

financial

order

Maintenance

payments

The

court

sometimes

tells

the

person

with

the

higher

income

to

make

regular

maintenance

payments

to

help

with

the

other

person

’s

living

costs

This

is

called

a

maintenance

order

A

maintenance

payment

can

be

set

for

a

limited

period

of

time

until

one

of

you

dies

marries

or

enters

into

a

new

civil

partnership

The

payment

can

also

be

changed

if

one

of

you

loses

your

job

or

gets

much

better

paid

work

Child

maintenance

The

court

can

also

decide

on

child

maintenance

but

this

is

often

arranged

by

the

Child

Maintenance

Service

Read

more

about

making

arrangements

to

look

after

children

when

you

divorce

or

separate

Tax

when

transferring

assets

You

do

not

usually

have

to

pay

Capital

Gains

Tax

if

you

give

or

otherwise

dispose

of

assets

to

your

husband

wife

or

civil

partner

before

you

finalise

the

divorce

or

civil

partnership

Assets

include

shares

certain

personal

possessions

and

property

You

usually

do

not

have

to

pay

tax

if

you

transfer

or

sell

your

main

home

If

you

transfer

an

asset

when

you

’re

separated

If

you

lived

together

at

any

point

in

the

tax

year

that

you

transferred

the

asset

the

normal

rules

for

spouses

and

civil

partners

apply

Otherwise

you

may

have

to

pay

Capital

Gains

Tax

You

’ll

need

to

get

a

valuation

of

the

asset

on

the

date

of

transfer

and

use

it

to

work

out

the

gain

or

loss

The

tax

year

is

from

April

to

April

the

following

year

If

you

transfer

an

asset

after

you

’ve

divorced

or

dissolved

your

civil

partnership

You

may

have

to

pay

Capital

Gains

Tax

on

assets

you

transfer

after

your

relationship

has

legally

ended

The

rules

for

working

out

your

gain

or

loss

are

complex

Contact

HM

Revenue

and

Customs

HMRC

or

get

professional

tax

help

such

as

an

accountant

or

tax

adviser

You

’ll

need

to

tell

them

the

date

of

the

decree

absolute

or

dissolution

any

court

order

if

assets

were

transferred

this

way

any

other

contract

showing

the

transfer

of

assets


Setting

up

In

a

partnership

you

and

your

partner

or

partners

personally

share

responsibility

for

your

business

This

includes

any

losses

your

business

makes

bills

for

things

you

buy

for

your

business

like

stock

or

equipment

Partners

share

the

business

’s

profits

and

each

partner

pays

tax

on

their

share

A

partner

does

not

have

to

be

an

actual

person

For

example

a

limited

company

counts

as

a

legal

person

and

can

also

be

a

partner

What

you

need

to

do

When

you

set

up

a

business

partnership

you

need

to

choose

a

name

choose

a

nominated

partner

register

with

HM

Revenue

and

Customs

HMRC

The

nominated

partner

is

responsible

for

managing

the

partnership

’s

tax

returns

and

keeping

business

records

There

are

different

rules

for

limited

partnerships

and

limited

liability

partnerships

LLPs

Naming

your

partnership

You

can

trade

under

your

own

names

or

you

can

choose

another

name

for

your

business

You

do

not

need

to

register

your

name

You

must

include

all

the

partners

names

and

the

business

name

if

you

have

one

on

official

paperwork

for

example

invoices

and

letters

Business

names

Business

partnership

names

must

not

include

limited

Ltd

limited

liability

partnership

LLP

public

limited

company

or

plc

be

offensive

be

the

same

as

an

existing

trade

mark

Your

name

also

can

not

contain

a

sensitive

word

or

expression

or

suggest

a

connection

with

government

or

local

authorities

unless

you

get

permission

Check

which

words

you

need

permission

to

use

and

who

from

You

’ll

need

to

register

your

name

as

a

trade

mark

if

you

want

to

stop

people

from

trading

under

your

business

name

Register

the

partnership

You

must

register

your

partnership

for

Self

Assessment

with

HM

Revenue

and

Customs

HMRC

if

you

’re

the

nominated

partner

This

means

you

’re

responsible

for

sending

the

partnership

tax

return

The

other

partners

need

to

register

separately

Register

a

partner

or

partnership

All

partners

also

need

to

send

their

own

tax

returns

as

individuals

You

must

register

by

October

in

your

business

’s

second

tax

year

or

you

could

be

charged

a

penalty

Other

ways

to

register

You

can

also

register

the

partnership

using

form

if

you

can

not

register

online

You

can

register

as

a

partner

using

form

Registering

for

VAT

You

must

also

register

for

VAT

if

your

VAT

taxable

turnover

is

more

than

You

can

choose

to

register

if

it

’s

below

this

for

example

to

reclaim

VAT

on

business

supplies

You

can

appoint

an

agent

to

deal

with

HMRC

on

your

behalf


What

you

pay

it

on

You

may

have

to

pay

Capital

Gains

Tax

if

you

make

a

profit

gain

when

you

sell

or

dispose

of

all

or

part

of

a

business

asset

Business

assets

you

may

need

to

pay

tax

on

include

land

and

buildings

fixtures

and

fittings

plant

and

machinery

for

example

a

digger

shares

registered

trademarks

your

business

’s

reputation

You

’ll

need

to

work

out

your

gain

to

find

out

whether

you

need

to

pay

tax

You

pay

Capital

Gains

Tax

if

you

’re

a

self

employed

sole

trader

or

in

a

business

partnership

Other

organisations

like

limited

companies

pay

Corporation

Tax

on

profits

from

selling

their

assets

When

you

do

not

pay

it

You

do

not

usually

need

to

pay

tax

on

gifts

to

your

husband

wife

civil

partner

or

a

charity

Work

out

your

gain

Your

gain

is

usually

the

difference

between

what

you

paid

for

your

business

asset

and

what

you

sold

it

for

Use

the

market

value

instead

if

you

gave

it

away

there

are

different

rules

if

it

was

to

your

spouse

civil

partner

or

a

charity

you

sold

it

for

less

than

it

was

worth

to

help

the

buyer

you

inherited

the

asset

and

do

not

know

the

Inheritance

Tax

value

you

owned

it

before

April

If

the

asset

was

given

to

you

and

you

claimed

Gift

Hold

Over

Relief

use

the

amount

it

was

originally

bought

for

to

work

out

your

gain

If

you

paid

less

than

it

was

worth

use

the

amount

you

paid

for

it

Deduct

costs

You

can

deduct

certain

costs

of

buying

selling

or

improving

your

asset

from

your

gain

Costs

you

can

deduct

include

fees

for

example

for

valuing

or

advertising

assets

costs

to

improve

assets

but

not

normal

repairs

Stamp

Duty

Land

Tax

and

VAT

unless

you

can

reclaim

the

VAT

You

can

not

deduct

certain

costs

These

include

interest

on

a

loan

to

buy

your

asset

costs

you

can

claim

as

business

expenses

Contact

HM

Revenue

and

Customs

HMRC

if

you

’re

not

sure

whether

you

can

deduct

a

certain

cost

Apply

reliefs

You

may

be

able

to

reduce

or

delay

paying

tax

on

your

gains

if

you

’re

eligible

for

tax

relief

Work

out

if

you

need

to

pay

When

you

know

your

gain

you

need

to

work

out

if

you

need

to

report

and

pay

Capital

Gains

Tax

If

you

’re

in

a

business

partnership

work

out

your

share

of

each

gain

or

loss

the

nominated

partner

must

fill

in

form

You

can

get

help

with

working

out

your

tax

for

example

from

an

accountant

Reporting

a

loss

The

rules

are

different

if

you

need

to

report

a

loss

Tax

relief

You

may

be

able

to

reduce

or

delay

the

amount

of

Capital

Gains

Tax

you

have

to

pay

if

you

’re

eligible

for

tax

relief

Relief

Description

Eligibility

Entrepreneurs

Relief

Pay

Capital

Gains

Tax

on

qualifying

profits

if

you

sell

all

or

part

of

your

business

instead

of

the

normal

rates

For

sole

traders

business

partners

or

those

with

shares

in

a

personal

company

Business

Asset

Rollover

Relief

Delay

paying

Capital

Gains

Tax

when

you

sell

or

dispose

of

some

types

of

asset

if

you

replace

them

Buy

the

new

asset

within

years

of

disposing

of

the

old

one

Use

the

old

and

new

assets

in

your

business

Incorporation

Relief

Delay

paying

Capital

Gains

Tax

when

you

transfer

your

business

to

a

company

Transfer

all

your

business

and

its

assets

except

cash

in

return

for

shares

in

the

company

Gift

Hold

Over

Relief

Pay

no

Capital

Gains

Tax

if

you

give

away

a

business

asset

the

person

you

gave

it

to

pays

tax

when

they

sell

it

You

used

the

business

asset

for

trading

as

a

sole

trader

or

partner

Tax

relief

when

you

sell

your

home

You

normally

get

Private

Residence

Relief

when

you

sell

or

dispose

of

your

main

home

meaning

you

do

not

pay

any

Capital

Gains

Tax

If

you

’ve

used

any

part

of

your

home

just

for

business

you

have

to

pay

Capital

Gains

Tax

on

that

part

when

you

sell

your

home

Disincorporation

relief

You

may

be

able

to

claim

Disincorporation

Relief

if

you

become

a

partnership

or

sole

trader

having

been

a

limited

company

If

you

acquire

the

company

’s

assets

when

it

changes

its

business

structure

you

may

have

to

pay

Capital

Gains

Tax

if

you

sell

or

dispose

of

them

later

you

’ll

use

their

value

including

any

Disincorporation

Relief

when

you

acquired

them

You

can

get

help

from

an

accountant

or

tax

adviser


Overview

Your

company

or

association

must

file

a

Company

Tax

Return

if

you

get

a

notice

to

deliver

a

Company

Tax

Return

from

HM

Revenue

and

Customs

HMRC

You

must

still

send

a

return

if

you

make

a

loss

or

have

no

Corporation

Tax

to

pay

You

do

not

send

a

Company

Tax

Return

if

you

’re

self

employed

as

a

sole

trader

or

in

a

partnership

but

you

must

send

a

Self

Assessment

return

What

it

involves

When

you

file

your

tax

return

you

work

out

your

profit

or

loss

for

Corporation

Tax

this

is

different

from

the

profit

or

loss

shown

in

your

annual

accounts

Corporation

Tax

bill

You

can

either

get

an

accountant

to

prepare

and

file

your

tax

return

or

do

it

yourself

If

you

have

a

limited

company

you

may

be

able

to

file

your

accounts

with

Companies

House

at

the

same

time

as

your

tax

return

Deadlines

The

deadline

for

your

tax

return

is

months

after

the

end

of

the

accounting

period

it

covers

You

’ll

have

to

pay

a

penalty

if

you

miss

the

deadline

There

’s

a

separate

deadline

to

pay

your

Corporation

Tax

bill

It

’s

usually

months

and

one

day

after

the

end

of

the

accounting

period

Penalties

for

late

filing

You

’ll

have

to

pay

penalties

if

you

do

not

file

your

Company

Tax

Return

by

the

deadline

Time

after

your

deadline

Penalty

day

months

Another

months

HM

Revenue

and

Customs

HMRC

will

estimate

your

Corporation

Tax

bill

and

add

a

penalty

of

the

unpaid

tax

months

Another

of

any

unpaid

tax

If

your

tax

return

is

late

times

in

a

row

the

penalties

are

increased

to

each

If

your

tax

return

is

more

than

months

late

If

your

tax

return

is

months

late

HMRC

will

write

telling

you

how

much

Corporation

Tax

they

think

you

must

pay

This

is

called

a

tax

determination

You

can

not

appeal

against

it

You

must

pay

the

Corporation

Tax

due

and

file

your

tax

return

HMRC

will

recalculate

the

interest

and

penalties

you

need

to

pay

Appeals

If

you

have

a

reasonable

excuse

you

can

appeal

against

a

late

filing

penalty

by

writing

to

your

company

’s

Corporation

Tax

office

Check

recent

tax

forms

or

letters

from

HMRC

for

your

Corporation

Tax

office

address

or

call

the

Corporation

Tax

helpline

Making

changes

You

must

usually

make

any

changes

amendments

within

months

of

the

filing

deadline

You

can

log

in

to

HM

Revenue

and

Customs

HMRC

online

services

to

amend

your

Company

Tax

Return

use

commercial

software

send

a

paper

return

or

write

to

your

company

’s

Corporation

Tax

office

Check

recent

tax

forms

or

letters

from

HMRC

for

the

Corporation

Tax

office

address

or

call

the

helpline

HMRC

may

charge

you

a

penalty

for

errors

HMRC

can

make

a

compliance

check

to

check

for

errors

in

your

Company

Tax

Return


What

you

pay

it

on

You

may

have

to

pay

Machine

Games

Duty

MGD

if

there

are

machines

that

give

cash

prizes

on

your

premises

You

pay

duty

on

slot

and

fruit

machines

and

other

gaming

machines

quiz

machines

and

other

skill

with

prize

machines

This

guide

is

also

available

in

Welsh

Cymraeg

You

do

not

pay

it

on

machines

where

the

prize

is

less

than

the

cost

to

play

or

on

takings

from

charity

events

tournaments

lottery

machines

or

if

the

machine

is

for

domestic

use

Your

takings

from

machine

games

will

be

exempt

from

VAT

if

you

pay

MGD

If

you

’re

responsible

for

MGD

you

’ll

need

to

register

send

regular

returns

pay

duty

and

keep

records

Who

’s

responsible

for

registering

and

paying

It

’s

your

responsibility

if

you

hold

any

of

the

following

licences

premises

licence

for

example

for

gambling

or

alcohol

family

entertainment

centre

gaming

machine

permit

club

premises

certificate

a

club

gaming

permit

or

club

machine

permit

prize

gaming

permit

or

amusement

permit

registration

certificate

including

a

club

registration

certificate

bookmaking

office

licence

or

bingo

club

licence

licence

to

sell

alcohol

in

Northern

Ireland

There

are

different

rules

if

you

’re

the

tenant

of

a

pub

You

’re

responsible

for

MGD

not

the

premises

licence

owner

usually

the

pub

’s

owner

When

you

stop

being

the

tenant

you

need

to

cancel

your

registration

You

are

not

responsible

for

MGD

if

you

supply

the

machines

unless

you

also

hold

the

licence

or

permit

for

the

premises

If

your

premises

does

not

have

a

licence

HM

Revenue

and

Customs

HMRC

will

ask

someone

else

usually

the

manager

or

owner

to

register

and

pay

the

duty

You

may

have

to

pay

a

penalty

if

you

do

not

register

when

you

should

Register

Register

for

Machine

Games

Duty

MGD

at

least

days

before

you

make

your

machines

available

to

play

You

register

by

adding

MGD

to

your

HM

Revenue

and

Customs

HMRC

account

If

you

do

not

have

one

or

only

have

an

account

for

personal

tax

create

an

account

as

an

organisation

To

register

for

MGD

you

’ll

need

any

licence

or

permit

numbers

for

your

premises

your

Unique

Taxpayer

Reference

UTR

if

you

’re

registered

for

Self

Assessment

or

Corporation

Tax

your

VAT

number

if

you

’re

registered

for

VAT

your

National

Insurance

number

to

know

how

many

machines

you

have

your

accountant

’s

MGD

agent

reference

number

and

postcode

if

you

want

them

to

file

returns

on

your

behalf

Register

now

After

you

’ve

registered

You

’ll

need

to

keep

accurate

records

to

show

how

you

worked

out

the

figures

for

your

return

that

the

amount

you

’ve

paid

is

correct

Keep

your

records

for

years

as

HMRC

might

ask

to

see

them

If

you

want

to

file

paper

returns

Fill

in

and

send

the

registration

form

if

you

want

to

file

paper

returns

How

much

you

pay

You

pay

Machine

Games

Duty

MGD

on

the

total

net

takings

from

your

machine

games

This

is

what

you

charge

to

play

the

games

minus

the

amount

you

pay

as

winnings

including

non

cash

prizes

You

do

not

pay

it

on

takings

from

charity

events

tournaments

lottery

machines

or

if

the

machine

is

for

domestic

use

MGD

rates

Cost

to

play

Prize

Rate

you

pay

Machine

type

lower

rate

pence

or

less

or

less

Machine

type

standard

rate

pence

to

or

more

All

other

machine

types

higher

rate

More

than

Any

If

your

machine

has

more

than

one

type

of

game

you

pay

the

rate

for

the

highest

rated

game

on

all

takings

from

the

machine

File

your

return

You

must

file

a

Machine

Games

Duty

MGD

return

every

months

Your

return

is

due

within

days

of

the

end

of

the

accounting

period

You

’ll

get

a

reminder

if

you

included

your

email

address

when

you

registered

online

You

’ll

need

records

of

your

total

net

takings

from

machine

games

details

of

how

you

worked

out

the

figures

You

still

fill

in

a

return

even

if

you

do

not

owe

anything

or

your

business

has

not

traded

during

this

accounting

period

This

can

be

for

any

reason

including

if

you

’ve

closed

because

of

coronavirus

Enter

in

all

boxes

File

your

return

If

you

chose

to

file

using

paper

forms

HM

Revenue

and

Customs

HMRC

will

send

you

paper

forms

when

your

return

is

due

If

you

do

not

receive

them

contact

the

helpline

After

you

’ve

filed

your

return

Pay

your

Machine

Games

Duty

bill

within

days

of

the

end

of

your

accounting

period

You

may

have

to

pay

a

penalty

if

your

return

or

payment

is

late

HMRC

can

also

charge

you

an

estimate

of

what

you

owe

Change

your

details

Sign

in

to

the

Machine

Games

Duty

MGD

service

to

change

your

contact

address

or

other

details

cancel

your

registration

if

you

’ve

stopped

trading

no

longer

have

machine

games

or

want

to

be

registered

as

part

of

a

group

of

companies

add

change

or

remove

an

authorised

agent

to

file

returns

for

you

You

can

also

contact

HM

Revenue

and

Customs

HMRC

by

phone

or

post

You

’ll

need

to

tell

them

your

registration

number

Switch

to

file

online

instead

of

sending

paper

returns

If

you

already

have

an

HMRC

online

account

sign

in

to

add

the

MGD

service

Otherwise

register

for

an

HMRC

account

and

sign

up

for

MGD


Overview

Before

you

pay

your

VAT

bill

make

sure

your

deadline

has

not

passed

Your

deadline

will

be

shown

on

your

VAT

return

There

are

different

deadlines

if

you

use

the

Annual

Accounting

Scheme

payments

on

account

Pay

now

There

’s

a

different

way

to

pay

a

VAT

Mini

One

Stop

Shop

VAT

MOSS

bill

Ways

to

pay

Make

sure

your

payment

will

reach

HM

Revenue

and

Customs

HMRC

bank

account

by

the

deadline

You

may

have

to

pay

a

surcharge

if

you

do

not

pay

on

time

You

can

use

the

VAT

payment

deadline

calculator

to

work

out

how

much

time

to

allow

Same

or

next

day

online

or

telephone

banking

Faster

Payments

CHAPS

working

days

Direct

Debit

Bacs

standing

order

only

for

businesses

using

the

Annual

Accounting

Scheme

or

Payments

on

Account

online

by

debit

or

corporate

credit

card

at

your

bank

or

building

society

If

the

deadline

falls

on

a

weekend

or

bank

holiday

your

payment

must

arrive

in

HMRC

’s

bank

account

on

the

last

working

day

before

it

unless

you

pay

by

Faster

Payments

Direct

Debit

Use

your

VAT

online

account

to

set

up

a

Direct

Debit

Set

up

the

Direct

Debit

at

least

working

days

before

you

submit

your

online

VAT

return

otherwise

the

payment

will

not

be

taken

from

your

bank

account

in

time

Once

you

’ve

set

up

the

Direct

Debit

payments

will

be

collected

automatically

from

your

bank

account

working

days

after

the

payment

deadline

on

your

VAT

return

If

you

file

your

VAT

return

late

your

payment

will

be

taken

days

after

you

file

the

return

You

can

not

pay

by

Direct

Debit

if

you

have

a

payments

on

account

arrangement

If

you

’ve

signed

up

to

Making

Tax

Digital

Businesses

that

have

signed

up

for

Making

Tax

Digital

and

usually

pay

VAT

by

Direct

Debit

do

not

need

to

set

up

a

new

one

HMRC

will

transfer

your

Direct

Debit

to

the

new

system

If

you

use

the

Annual

Accounting

Scheme

Businesses

that

use

the

Annual

Accounting

Scheme

can

only

set

up

an

automatic

Direct

Debit

online

for

balancing

payments

You

can

set

up

a

Direct

Debit

for

regular

payments

using

form

VAT

Getting

VAT

repayments

The

bank

account

details

you

use

to

set

up

your

Direct

Debit

will

not

be

used

for

VAT

repayments

To

get

VAT

repayments

paid

into

your

bank

account

update

the

registration

details

in

your

VAT

online

account

Otherwise

HMRC

will

send

you

a

cheque

Make

an

online

or

telephone

bank

transfer

You

can

pay

HM

Revenue

and

Customs

HMRC

by

Faster

Payments

CHAPS

or

Bacs

Sort

code

Account

number

Account

name

HMRC

VAT

Reference

number

You

’ll

need

your

digit

VAT

registration

number

to

make

a

payment

Find

your

registration

number

in

your

VAT

online

account

on

your

VAT

registration

certificate

Do

not

put

any

spaces

between

the

digits

when

paying

your

VAT

bill

Your

payment

may

be

delayed

if

you

use

the

wrong

reference

number

How

long

it

takes

Payments

made

by

Faster

Payments

online

or

telephone

banking

will

usually

reach

HMRC

on

the

same

or

next

day

including

weekends

and

bank

holidays

CHAPS

payments

usually

reach

HMRC

the

same

working

day

if

you

pay

within

your

bank

’s

processing

times

Bacs

payments

usually

take

working

days

Check

your

bank

’s

transaction

limits

and

processing

times

before

making

a

payment

Overseas

payments

Account

number

IBAN

Bank

identifier

code

BIC

Account

name

HMRC

VAT

HMRC

’s

banking

address

is

By

debit

or

corporate

credit

card

online

You

can

pay

online

There

’s

a

fee

if

you

pay

by

corporate

credit

card

or

corporate

debit

card

The

fee

is

not

refundable

There

’s

no

fee

if

you

pay

by

personal

debit

card

You

can

not

pay

by

personal

credit

card

You

’ll

need

your

digit

VAT

registration

number

to

make

a

payment

Find

your

registration

number

in

your

VAT

online

account

on

your

VAT

registration

certificate

Your

payment

may

be

delayed

if

you

use

the

wrong

reference

number

Allow

working

days

for

your

payment

to

reach

HM

Revenue

and

Customs

bank

account

If

you

’re

unable

to

pay

your

VAT

bill

in

full

by

card

you

should

use

another

payment

method

like

a

bank

transfer

At

your

bank

or

building

society

You

’ll

need

to

order

paying

in

slips

online

or

by

phone

from

HM

Revenue

and

Customs

HMRC

before

you

can

pay

this

way

It

can

take

up

to

weeks

for

them

to

arrive

Use

the

paying

in

slips

to

pay

at

your

own

bank

or

building

society

by

cash

or

cheque

Make

your

cheque

payable

to

HM

Revenue

and

Customs

only

Write

your

digit

VAT

registration

number

on

the

back

of

your

cheque

You

will

find

your

registration

number

in

your

VAT

online

account

on

your

VAT

registration

certificate

Your

payment

may

be

delayed

if

you

use

the

wrong

reference

number

Allow

working

days

for

your

payment

to

reach

HM

Revenue

and

Customs

bank

account

Standing

order

Businesses

using

the

Annual

Accounting

Scheme

or

making

payments

on

account

can

pay

a

VAT

bill

by

standing

order

Standing

orders

take

working

days

to

reach

HM

Revenue

and

Customs

HMRC

bank

account

Annual

Accounting

Scheme

Ask

to

pay

by

standing

order

on

your

application

form

for

the

Annual

Accounting

Scheme

After

you

’ve

received

a

letter

from

HMRC

accepting

your

application

set

up

a

standing

order

using

either

form

VAT

online

or

telephone

banking

Payments

on

account

Set

up

a

standing

order

using

either

form

VAT

online

or

telephone

banking

Check

your

payment

has

been

received

View

your

VAT

online

account

to

see

if

your

payment

has

been

received

it

should

update

within

hours

Pay

your

UK

VAT

MOSS

bill

The

UK

VAT

Mini

One

Stop

Shop

VAT

MOSS

scheme

closes

on

January

You

must

send

your

final

UK

VAT

MOSS

return

and

payment

by

January

You

will

not

be

able

to

submit

a

return

after

January

If

you

sell

digital

services

to

customers

in

the

EU

you

must

either

register

for

VAT

MOSS

in

an

EU

country

or

pay

VAT

in

each

country

you

supply

to

Find

out

about

registering

for

VAT

in

EU

countries

Ways

to

pay

Businesses

that

are

VAT

registered

in

the

UK

can

pay

by

Faster

Payments

CHAPS

or

Bacs

to

the

Union

VAT

MOSS

account

Businesses

outside

the

EU

should

use

the

Non

Union

VAT

MOSS

account

Use

the

payment

reference

HMRC

sent

you

when

you

submitted

your

VAT

MOSS

Return

You

can

also

find

it

by

logging

in

to

your

online

account

and

checking

the

confirmation

message

Union

VAT

MOSS

account

details

Sort

code

Account

number

Account

name

HMRC

VAT

ON

E

You

can

not

combine

your

VAT

MOSS

payment

with

your

normal

UK

VAT

Return

payment

because

it

goes

to

a

different

bank

account

How

long

it

takes

Payments

made

by

Faster

Payments

online

or

telephone

banking

will

usually

reach

HMRC

on

the

same

or

next

day

CHAPS

payments

usually

reach

HMRC

the

same

working

day

if

you

pay

within

your

bank

’s

processing

times

Bacs

payments

usually

take

working

days

Check

your

bank

’s

transaction

limits

and

processing

times

before

making

a

payment

Non

Union

VAT

MOSS

account

details

Use

the

Non

Union

VAT

MOSS

bank

details

if

your

business

is

based

outside

the

EU

Account

number

IBAN

Bank

identifier

code

BIC

Account

name

HMRC

VAT

ON

E

To

avoid

underpaying

HMRC

because

of

bank

charges

ask

your

bank

to

use

the

code

OUR

in

the

Detail

of

charge

field

when

they

process

your

payment

HMRC

’s

banking

address

for

Non

Union

VAT

MOSS

payments

is


Overview

Your

limited

company

pays

less

Corporation

Tax

when

it

gives

the

following

to

charity

money

equipment

or

trading

stock

items

it

makes

or

sells

land

property

or

shares

in

another

company

shares

in

your

own

company

do

n’t

qualify

employees

on

secondment

sponsorship

payments

You

can

claim

tax

relief

by

deducting

the

value

of

your

donations

from

your

total

business

profits

before

you

pay

tax

There

are

different

rules

for

sole

traders

and

partnerships

Donating

money

Your

limited

company

can

pay

less

Corporation

Tax

when

it

gives

money

to

a

charity

or

community

amateur

sports

club

CASC

Deduct

the

value

of

the

donations

from

your

total

business

profits

before

you

pay

tax

Payments

that

do

n’t

qualify

You

ca

n’t

deduct

payments

that

are

loans

that

will

be

repaid

by

the

charity

are

made

on

the

condition

that

the

charity

will

buy

property

from

your

company

or

anyone

connected

with

it

are

a

distribution

of

company

profits

eg

dividends

If

you

’re

given

something

in

return

Any

benefits

you

’re

given

in

return

for

your

donation

eg

tickets

to

an

event

must

be

below

a

certain

value

Donation

amount

Maximum

value

of

benefit

Up

to

of

the

donation

and

over

of

the

donation

up

to

a

maximum

of

This

applies

to

benefits

given

to

any

person

or

company

connected

with

your

company

including

close

relatives

If

you

get

a

benefit

that

’s

related

to

the

company

your

donation

qualifies

as

a

sponsorship

payment

Equipment

and

trading

stock

Your

limited

company

pays

less

Corporation

Tax

if

it

gives

equipment

or

items

it

makes

or

sells

trading

stock

to

a

charity

or

community

amateur

sports

club

CASC

Giving

equipment

You

can

claim

full

capital

allowances

on

the

cost

of

equipment

To

qualify

the

equipment

must

have

been

used

by

your

company

This

includes

things

like

office

furniture

computers

and

printers

vans

and

cars

tools

and

machinery

Giving

trading

stock

If

your

company

donates

its

trading

stock

to

a

charity

or

CASC

you

do

n’t

have

to

include

anything

in

your

sales

income

for

the

value

of

the

gift

This

means

you

get

tax

relief

on

the

cost

of

the

stock

you

’ve

given

away

VAT

If

your

company

is

VAT

registered

you

’ll

need

to

account

for

VAT

on

the

items

you

give

away

However

you

can

apply

zero

VAT

to

the

items

even

if

you

normally

charge

the

standard

or

reduced

rate

if

your

company

makes

the

donation

specifically

so

that

the

charity

can

sell

the

items

hire

out

the

items

export

the

items

This

means

you

can

reclaim

the

VAT

on

the

cost

of

the

trading

stock

you

donate

If

you

ca

n’t

zero

rate

the

items

use

the

VAT

rate

you

normally

apply

to

them

Land

property

and

shares

Your

limited

company

could

pay

less

Corporation

Tax

if

it

gives

or

sells

any

of

the

following

to

charity

land

or

property

shares

in

another

company

You

ca

n’t

claim

for

gifts

or

sales

of

shares

in

your

own

company

Contact

your

chosen

charity

first

to

make

sure

it

can

accept

your

gift

What

you

get

If

you

give

these

to

charity

including

selling

them

for

less

than

they

’re

worth

you

wo

n’t

have

to

pay

tax

on

capital

gains

you

can

deduct

the

value

of

the

gift

its

market

value

from

your

business

profits

before

you

pay

tax

If

you

donate

or

sell

to

a

community

amateur

sports

club

CASC

you

do

n’t

pay

tax

on

capital

gains

but

you

ca

n’t

deduct

the

value

of

the

gift

from

your

business

profits

Work

out

the

market

value

You

’ll

need

to

know

how

much

the

gift

would

sell

for

in

an

open

market

its

market

value

to

calculate

your

tax

relief

You

can

get

professional

help

with

this

What

you

need

to

do

You

must

keep

documents

relating

to

the

donation

to

show

that

you

’ve

made

the

gift

or

sale

and

that

the

charity

has

accepted

it

You

must

keep

these

records

for

at

least

years

Land

or

property

You

must

get

a

letter

or

certificate

from

the

charity

which

contains

a

description

of

the

land

or

property

the

date

of

the

gift

or

sale

the

disposal

date

a

statement

confirming

that

it

now

owns

the

land

or

property

Shares

You

must

fill

in

a

stock

transfer

form

to

take

the

shares

out

of

your

company

’s

name

and

put

them

into

the

charity

’s

name

Selling

land

property

or

shares

on

behalf

of

a

charity

When

you

offer

a

gift

of

land

property

or

shares

the

charity

may

ask

you

to

sell

the

gift

on

its

behalf

You

can

do

this

and

still

claim

tax

relief

for

the

donation

but

you

must

keep

records

of

the

gift

and

the

charity

’s

request

Without

them

you

might

have

to

pay

Corporation

Tax

Seconding

employees

You

can

deduct

any

costs

as

normal

business

expenses

if

your

company

temporarily

transfers

an

employee

to

work

for

a

charity

known

as

a

secondment

an

employee

volunteers

for

a

charity

in

work

time

Your

company

must

continue

to

pay

the

employee

and

run

Pay

As

You

Earn

PAYE

on

their

salary

You

can

set

the

costs

including

wages

and

business

expenses

against

your

taxable

profits

as

if

they

were

still

working

for

you

You

ca

n’t

claim

the

costs

of

employees

on

secondment

or

volunteering

at

a

community

amateur

sports

club

CASC

Sponsoring

a

charity

Charity

sponsorship

payments

are

different

from

donations

because

your

company

gets

something

related

to

the

business

in

return

You

can

deduct

sponsorship

payments

from

your

business

profits

before

you

pay

tax

by

treating

them

as

business

expenses

What

qualifies

Payments

qualify

as

business

expenses

if

the

charity

publicly

supports

your

products

or

services

allows

you

to

use

their

logo

in

your

own

printed

material

allows

you

to

sell

your

goods

or

services

at

their

event

or

premises

links

from

their

website

to

yours

If

you

’re

unsure

whether

a

charity

payment

qualifies

as

a

sponsorship

payment

or

a

donation

contact

the

charities

helpline

How

to

claim

There

are

different

ways

to

claim

tax

relief

depending

on

the

type

of

donation

you

make

Deduct

from

your

profits

Claim

relief

in

the

Company

Tax

Return

that

covers

the

accounting

period

during

which

you

made

the

donation

or

sale

if

you

have

donated

money

given

or

sold

land

property

or

shares

Enter

the

total

value

of

your

donations

in

the

Qualifying

donations

box

of

the

Deductions

and

Reliefs

section

of

your

tax

return

There

are

special

rules

for

working

out

the

value

of

your

donation

if

you

give

or

sell

land

property

or

shares

to

a

charity

Deduct

as

business

expenses

Deduct

costs

as

normal

business

expenses

in

your

company

’s

annual

accounts

if

you

have

seconded

employees

sponsored

a

charity

Claim

capital

allowances

Claim

capital

allowances

on

the

cost

of

equipment

you

donate

in

your

company

’s

annual

accounts

If

you

donate

more

than

your

profit

The

most

you

can

deduct

is

the

amount

that

reduces

your

company

’s

profits

to

zero

If

you

donate

more

than

your

total

profits

you

ca

n’t

declare

trading

losses

on

your

tax

return

carry

over

any

remaining

amount

to

your

next

tax

return


Overview

You

should

register

for

the

Construction

Industry

Scheme

CIS

if

you

work

for

a

contractor

and

you

’re

one

of

the

following

self

employed

the

owner

of

a

limited

company

a

partner

in

a

partnership

or

trust

Under

CIS

a

contractor

must

deduct

from

your

payments

and

pass

it

to

HM

Revenue

and

Customs

HMRC

These

deductions

count

as

advance

payments

towards

your

tax

and

National

Insurance

bill

If

you

do

not

register

for

the

scheme

contractors

must

deduct

from

your

payments

instead

If

you

do

not

want

deductions

made

If

you

do

not

want

deductions

to

be

made

in

advance

by

contractors

you

can

apply

for

gross

payment

status

You

can

do

this

when

you

register

for

CIS

You

do

not

need

to

register

for

CIS

if

you

’re

an

employee

Check

your

employment

status

if

you

’re

not

sure

How

to

register

To

register

for

the

Construction

Industry

Scheme

CIS

you

’ll

need

your

legal

business

name

you

can

also

give

a

trading

name

if

it

’s

different

to

your

business

name

your

National

Insurance

Number

the

unique

taxpayer

reference

number

UTR

for

your

business

your

VAT

registration

number

if

you

’re

VAT

registered

If

you

’re

a

subcontractor

and

a

contractor

you

pay

subcontractors

to

do

construction

work

you

’ll

need

to

register

for

CIS

as

both

Register

as

a

sole

trader

If

you

’re

a

sole

trader

and

you

already

have

a

UTR

you

can

register

for

CIS

online

You

’ll

need

the

Government

Gateway

user

ID

and

password

you

used

when

you

registered

for

Self

Assessment

or

another

government

service

You

can

apply

for

gross

payment

status

at

the

same

time

If

you

do

not

have

a

UTR

register

as

a

new

business

for

Self

Assessment

and

choose

working

as

a

subcontractor

when

prompted

You

’ll

be

registered

for

Self

Assessment

and

CIS

at

the

same

time

You

can

also

call

the

CIS

helpline

to

register

Register

as

another

type

of

business

Fill

in

the

online

form

for

limited

companies

or

the

online

form

for

partnerships

HMRC

will

register

the

partnership

separately

to

your

sole

trader

registration

They

will

need

the

partnership

UTR

and

trading

name

You

are

based

abroad

You

should

still

register

for

CIS

if

you

are

a

subcontractor

based

abroad

but

do

construction

work

in

the

UK

Help

and

support

Call

the

CIS

helpline

for

help

with

registering

You

can

also

sign

up

for

webinars

and

emails

or

watch

videos

from

HMRC

about

CIS

Get

paid

To

be

paid

correctly

by

a

contractor

make

sure

you

give

them

the

exact

same

legal

business

name

or

trading

name

you

gave

when

you

registered

for

the

Construction

Industry

Scheme

CIS

You

should

also

give

them

your

Unique

Taxpayer

Reference

UTR

so

they

can

verify

you

If

you

do

not

this

could

affect

how

much

you

get

paid

Deduction

rates

When

a

contractor

pays

you

under

CIS

they

’ll

normally

make

deductions

at

the

standard

rate

of

Contractors

will

make

deductions

at

a

higher

rate

of

if

you

are

not

registered

for

CIS

they

can

not

verify

you

you

give

the

wrong

name

for

your

business

Your

contractor

should

give

you

monthly

statements

of

payments

and

deductions

Use

them

to

calculate

whether

you

still

owe

tax

and

National

Insurance

to

HM

Revenue

and

Customs

HMRC

or

are

due

a

refund

Gross

payment

status

You

can

apply

for

gross

payment

status

when

you

register

for

CIS

This

means

the

contractor

will

not

make

deductions

from

your

payments

and

you

’ll

pay

all

your

tax

and

National

Insurance

at

the

end

of

the

tax

year

What

does

not

count

as

your

pay

Contractors

will

not

make

a

deduction

from

amounts

you

charge

on

your

invoice

for

VAT

materials

that

you

have

paid

for

directly

equipment

which

is

now

unusable

consumable

stores

plant

hired

for

the

job

manufacturing

or

prefabricating

materials

Pay

tax

and

claim

back

deductions

When

you

’re

registered

with

the

Construction

Industry

Scheme

CIS

you

’re

still

responsible

for

paying

the

correct

tax

and

National

Insurance

for

your

business

even

if

deductions

have

been

made

by

contractors

throughout

the

year

Contractors

will

give

you

a

monthly

statement

of

what

they

’ve

paid

you

and

deductions

they

’ve

made

to

help

with

your

accounting

Sole

traders

and

partners

At

the

end

of

the

tax

year

send

in

your

Self

Assessment

tax

return

as

usual

You

should

record

the

full

amounts

on

your

invoices

as

income

any

deductions

contractors

have

made

in

the

CIS

deductions

field

HM

Revenue

and

Customs

HMRC

will

work

out

your

tax

and

National

Insurance

bill

and

take

off

any

deductions

made

by

contractors

If

you

still

owe

tax

after

this

you

’ll

need

to

pay

it

by

January

following

the

end

of

the

tax

year

If

you

’re

due

a

tax

refund

HMRC

will

pay

the

money

back

Limited

companies

If

you

have

gross

payment

status

declare

all

your

income

in

your

Corporation

Tax

return

as

usual

If

you

pay

CIS

deductions

you

must

claim

these

back

through

your

company

’s

monthly

payroll

scheme

Do

not

try

to

claim

back

through

your

Corporation

Tax

return

you

may

get

a

penalty

if

you

do

Send

your

monthly

Full

Payment

Submission

FPS

as

usual

to

HMRC

Also

send

an

Employer

Payment

Summary

EPS

Enter

the

total

CIS

deductions

for

the

year

to

date

HMRC

will

take

your

CIS

deductions

off

what

you

owe

in

PAYE

tax

and

National

Insurance

Pay

the

balance

by

the

usual

date

If

your

company

’s

PAYE

bill

for

the

period

is

reduced

to

zero

and

you

still

have

some

CIS

deductions

you

have

not

been

able

to

claim

back

carry

these

forward

to

the

next

month

or

quarter

in

the

same

tax

year

Tell

HMRC

in

the

EPS

that

you

have

nothing

to

pay

If

HMRC

thinks

your

claim

is

wrong

HMRC

may

ask

you

to

provide

evidence

for

your

CIS

deductions

or

to

change

your

claim

If

you

do

not

do

this

by

the

deadline

they

give

you

you

will

not

be

able

to

make

any

more

claims

in

that

tax

year

You

can

appeal

HMRC

’s

decision

They

’ll

tell

you

how

to

do

this

Keep

records

Your

company

must

keep

a

record

of

amounts

claimed

back

against

your

monthly

or

quarterly

PAYE

bill

You

can

use

form

to

do

this

or

keep

your

own

records

If

you

paid

too

much

in

CIS

deductions

HMRC

will

pay

back

any

deductions

your

company

has

not

been

able

to

claim

back

from

its

PAYE

bill

during

the

tax

year

If

your

company

goes

into

administration

If

your

company

goes

into

administration

or

liquidation

the

person

managing

it

should

write

to

HMRC

to

ask

for

CIS

deductions

to

be

repaid

straight

away

If

you

do

not

have

all

your

CIS

statements

If

you

have

not

received

all

the

CIS

statements

you

need

from

your

contractor

you

can

ask

them

to

send

you

replacement

copies

If

the

contractor

you

’re

working

for

stops

trading

and

you

have

not

been

able

to

get

all

your

CIS

statements

you

should

write

to

HMRC

Include

the

following

information

your

name

address

and

Unique

Taxpayer

Reference

UTR

the

name

and

address

of

the

contractor

the

contractor

’s

tax

reference

if

you

know

it

the

dates

of

the

payments

or

the

tax

months

when

the

contractor

paid

you

the

reason

why

you

do

not

have

the

statements

or

duplicates

How

to

get

gross

payment

status

You

can

apply

for

gross

payment

status

when

you

register

for

CIS

This

means

contractors

will

pay

you

in

full

without

deductions

You

’ll

pay

all

your

tax

and

National

Insurance

at

the

end

of

the

tax

year

If

you

’re

already

registered

for

CIS

you

can

apply

for

gross

payment

status

by

calling

the

CIS

helpline

or

applying

online

Apply

for

gross

payment

status

online

Sign

in

to

Government

Gateway

you

’ll

need

the

Government

Gateway

user

ID

and

password

you

used

when

you

registered

for

CIS

If

you

do

not

have

a

user

ID

you

can

create

one

when

you

register

for

CIS

From

Your

tax

account

go

to

Other

services

Choose

Construction

Industry

Scheme

Subcontractors

To

qualify

You

must

show

HM

Revenue

and

Customs

HMRC

that

your

business

passes

some

tests

You

’ll

need

to

show

that

you

’ve

paid

your

tax

and

National

Insurance

on

time

in

the

past

your

business

does

construction

work

or

provides

labour

for

it

in

the

UK

your

business

is

run

through

a

bank

account

HMRC

will

look

at

your

turnover

for

the

last

months

Ignoring

VAT

and

the

cost

of

materials

your

turnover

must

be

at

least

if

you

’re

a

sole

trader

for

each

partner

in

a

partnership

or

at

least

for

the

whole

partnership

for

each

director

of

a

company

or

at

least

for

the

whole

company

If

your

company

’s

controlled

by

people

or

fewer

you

must

have

an

annual

turnover

of

for

each

of

them

You

could

be

fined

if

you

provide

false

information

or

help

someone

else

to

make

a

false

application

Paying

tax

when

you

have

gross

payment

status

You

must

declare

your

payments

as

income

at

the

end

of

the

tax

year

in

your

Self

Assessment

tax

return

if

you

’re

a

sole

trader

or

partner

your

Corporation

Tax

return

if

you

own

a

limited

company

Annual

review

If

you

have

gross

payment

status

HM

Revenue

and

Customs

HMRC

will

review

your

business

every

year

to

decide

if

you

can

keep

your

status

You

must

be

on

time

with

your

tax

returns

and

payments

to

keep

your

gross

payment

status

If

you

run

a

limited

company

HMRC

will

review

the

company

itself

rather

than

individual

directors

or

shareholders

You

do

not

meet

all

the

conditions

You

could

fail

the

review

and

HMRC

will

remove

your

gross

payment

status

You

’ll

be

allowed

a

small

amount

of

late

payments

or

returns

Contact

HMRC

if

you

have

problems

paying

your

tax

on

time

If

HMRC

give

you

more

time

to

pay

this

will

not

affect

your

gross

payment

status

You

fail

your

review

You

’ll

get

a

letter

explaining

you

’re

about

to

fail

the

review

along

with

the

reasons

why

If

you

disagree

you

can

write

back

with

your

reasons

If

HMRC

accept

your

explanation

they

will

not

remove

your

gross

payment

status

If

you

do

not

reply

to

the

letter

or

HMRC

does

not

accept

your

explanation

they

’ll

write

to

explain

what

conditions

you

have

not

met

that

they

’re

withdrawing

your

gross

payment

status

in

days

If

you

think

HMRC

have

made

the

wrong

decision

you

have

days

from

the

date

of

this

letter

to

appeal

Reapplying

for

gross

payment

status

If

HMRC

cancel

your

gross

payment

status

you

need

to

wait

a

year

from

the

date

of

the

cancellation

before

you

can

reapply

Changes

you

need

to

report

Report

changes

by

calling

the

Construction

Industry

Scheme

CIS

helpline

Tell

them

if

you

change

from

a

sole

trader

to

a

partnership

leave

a

partnership

or

company

to

become

a

sole

trader

create

a

company

or

change

your

business

to

a

company

You

’ll

usually

need

to

register

again

for

CIS

as

you

can

not

transfer

the

registration

from

your

old

business

structure

If

you

have

gross

payment

status

you

’ll

need

to

apply

again

You

must

also

tell

HM

Revenue

and

Customs

HMRC

if

you

change

your

trading

name

change

your

business

private

or

registered

office

address

stop

trading

add

new

shareholders

HMRC

may

withdraw

your

gross

payment

status

if

you

do

not

tell

them

within

days

Stop

trading

If

your

business

goes

into

administration

it

can

keep

receiving

payments

for

work

it

’s

done

under

CIS

It

should

be

paid

in

the

same

way

that

it

was

paid

normally

either

gross

or

under

deduction


Overview

All

businesses

whatever

their

size

must

understand

how

they

’re

affected

by

competition

law

You

must

follow

the

rules

on

all

types

of

anti

competitive

activity

including

price

fixing

bid

rigging

and

other

ways

of

agreeing

not

to

compete

sometimes

called

cartels

abuse

of

a

dominant

market

position

You

should

manage

the

risk

of

breaking

the

law

for

example

by

having

clear

policies

guidelines

and

training

for

your

staff

You

can

report

anti

competitive

activity

if

you

think

another

business

is

breaking

the

law

or

if

you

might

have

been

involved

yourself

If

you

’re

involved

in

anti

competitive

activity

Your

business

can

be

fined

up

to

of

its

worldwide

turnover

and

sued

for

damages

You

can

be

fined

or

sent

to

prison

for

up

to

years

if

you

’re

found

guilty

of

being

involved

in

cartel

activity

Company

directors

can

be

disqualified

from

being

a

director

for

up

to

years

Get

legal

advice

or

contact

the

Competition

Pro

Bono

Scheme

if

you

think

something

your

business

is

doing

might

break

the

law

Types

of

anti

competitive

activity

You

must

avoid

all

types

of

anti

competitive

activity

in

your

business

including

agreeing

not

to

compete

with

another

business

abusing

a

dominant

position

You

can

report

anti

competitive

activity

if

you

see

it

Agreeing

not

to

compete

with

another

business

cartels

If

or

more

businesses

agree

not

to

compete

with

each

other

in

certain

ways

it

’s

called

a

cartel

The

rules

on

cartels

apply

to

businesses

of

any

size

Rules

about

cartels

cover

price

fixing

bid

rigging

sharing

markets

or

customers

sharing

commercially

sensitive

information

An

agreement

does

not

have

to

be

in

writing

for

it

to

be

illegal

You

can

break

the

law

if

you

have

an

informal

conversation

or

gentleman

’s

agreement

with

another

business

even

if

the

agreement

is

not

carried

out

You

can

work

with

other

businesses

without

breaking

competition

law

Get

legal

advice

or

contact

the

Competition

Pro

Bono

Scheme

if

you

need

to

and

make

sure

you

manage

any

risks

Price

fixing

You

must

not

discuss

the

prices

you

’re

going

to

charge

your

customers

with

your

competitors

You

’ll

be

breaking

the

law

if

you

agree

with

another

business

to

charge

the

same

prices

to

your

customers

to

offer

discounts

or

increase

your

prices

at

the

same

time

to

charge

the

same

fees

to

intermediaries

for

example

retailers

selling

your

products

Bid

rigging

You

can

not

discuss

bids

for

a

contract

tender

with

your

competitors

Bid

rigging

includes

agreeing

with

your

competitors

how

much

you

’ll

bid

for

a

contract

or

share

information

about

your

bid

taking

turns

to

win

contracts

asking

other

businesses

to

bid

when

they

do

not

want

the

contract

called

cover

bids

paying

other

businesses

not

to

bid

or

when

you

win

a

tender

agreeing

with

other

businesses

not

to

bid

or

to

withdrawing

your

bid

Market

sharing

You

can

not

agree

with

other

businesses

to

share

markets

or

customers

You

’ll

be

breaking

competition

law

if

you

agree

with

another

business

not

to

approach

each

other

’s

customers

not

to

compete

with

them

for

customers

for

example

in

specific

locations

Sharing

information

You

can

not

share

information

with

other

businesses

that

might

reduce

competition

between

you

for

example

information

about

prices

production

your

suppliers

customers

or

contractors

the

markets

you

sell

or

plan

to

sell

to

This

includes

sharing

information

through

a

third

party

for

example

a

trade

association

Abusing

a

dominant

position

Your

business

might

have

a

dominant

position

in

the

market

if

it

has

more

than

a

market

share

it

’s

not

affected

by

normal

competitive

restraints

You

might

be

abusing

your

dominant

position

if

you

’re

unfair

to

your

customers

or

other

businesses

for

example

you

treat

customers

differently

for

example

by

offering

different

prices

or

terms

to

similar

customers

make

customers

buy

products

they

do

not

want

for

example

forcing

them

to

take

warranties

for

electrical

products

charge

low

prices

that

do

not

cover

your

costs

so

you

drive

out

competitors

If

you

think

you

have

a

dominant

market

position

get

legal

advice

or

contact

the

Competition

Pro

Bono

Scheme

to

find

out

what

you

can

and

can

not

do

Other

anti

competitive

activities

You

must

avoid

other

activities

that

break

competition

law

eg

buying

or

selling

jointly

with

your

competitors

agreeing

with

your

competitors

to

reduce

production

of

something

to

raise

its

market

value

restricting

how

much

other

businesses

can

sell

your

product

for

agreeing

with

your

competitors

not

to

sell

to

certain

customers

or

deal

with

certain

suppliers

having

long

term

exclusive

contracts

with

any

customers

or

suppliers

Manage

risk

The

people

who

run

your

business

are

responsible

for

ensuring

it

does

not

break

competition

law

You

should

work

out

where

your

business

is

at

risk

and

how

serious

any

risks

are

set

up

policies

guidelines

and

training

for

your

staff

if

you

need

to

Your

business

can

still

be

given

a

penalty

and

sued

for

damages

even

if

your

senior

managers

did

not

know

about

the

illegal

activity

Work

out

if

your

business

is

at

risk

You

’re

more

likely

to

be

at

risk

if

you

or

your

employees

have

contact

with

your

competitors

for

example

at

conferences

or

trade

association

meetings

your

employees

regularly

move

to

or

from

jobs

with

your

competitors

you

have

partnerships

with

your

competitors

for

example

joint

buying

or

selling

you

have

any

long

term

exclusive

contracts

with

any

customers

or

suppliers

your

business

has

a

dominant

position

in

any

market

where

you

do

business

Set

up

policies

guidelines

and

training

You

should

ask

a

senior

member

of

staff

for

example

a

director

to

make

sure

your

employees

know

how

to

avoid

and

report

anti

competitive

behaviour

There

’s

further

guidance

from

the

Competition

and

Markets

Authority

CMA

on

reducing

the

risk

of

your

business

breaking

the

law

Report

anti

competitive

activity

The

way

you

report

anti

competitive

activity

depends

on

the

type

of

activity

Report

a

cartel

A

cartel

is

where

two

or

more

businesses

agree

not

to

compete

with

each

other

for

example

by

sharing

a

market

or

fixing

prices

Contact

the

Competition

and

Markets

Authority

CMA

cartels

hotline

if

you

know

about

a

cartel

have

been

involved

in

one

You

may

get

a

financial

reward

for

information

that

leads

to

an

investigation

be

treated

with

leniency

if

you

report

a

cartel

you

’ve

been

involved

with

Report

other

anti

competitive

activity

Tell

the

CMA

if

you

have

concerns

about

anti

competitive

activity

Email

general.enquiries@cma.gov.uk

with

the

following

information

your

contact

details

the

business

you

have

concerns

about

and

a

description

of

the

issue

along

with

any

supporting

evidence

the

market

area

according

to

the

UK

Standard

Classification

Index

details

of

any

other

organisations

you

have

contacted

If

you

want

help

with

a

consumer

problem

contact

Citizens

Advice

or

the

Financial

Conduct

Authority

for

consumer

credit

related

issues

Report

your

concerns

to

an

industry

regulator

You

can

also

report

concerns

about

anti

competitive

activity

in

certain

sectors

to

a

regulator

These

are

Civil

Aviation

Authority

for

airports

and

air

traffic

services

Financial

Conduct

Authority

for

financial

services

in

the

UK

Monitor

for

health

services

in

England

Ofcom

for

television

radio

telephone

postal

and

internet

services

Ofgem

for

gas

and

electricity

in

England

Wales

and

Scotland

Ofwat

for

water

and

sewage

services

in

England

and

Wales

Office

of

Road

and

Rail

for

railways

in

England

Wales

and

Scotland

Payment

Systems

Regulator

for

payment

systems

in

the

UK

Utility

Regulator

for

gas

electricity

water

and

sewerage

in

Northern

Ireland


Directors

responsibilities

As

a

director

of

a

limited

company

you

must

follow

the

company

’s

rules

shown

in

its

articles

of

association

keep

company

records

and

report

changes

file

your

accounts

and

your

Company

Tax

Return

tell

other

shareholders

if

you

might

personally

benefit

from

a

transaction

the

company

makes

pay

Corporation

Tax

You

can

hire

other

people

to

manage

some

of

these

things

day

to

day

for

example

an

accountant

but

you

’re

still

legally

responsible

for

your

company

’s

records

accounts

and

performance

You

may

be

fined

prosecuted

or

disqualified

if

you

do

not

meet

your

responsibilities

as

a

director

Contact

your

professional

adviser

or

trade

association

to

find

out

more

Taking

money

out

of

a

limited

company

How

you

take

money

out

of

the

company

depends

on

what

it

’s

for

and

how

much

you

take

out

Salary

expenses

and

benefits

If

you

want

the

company

to

pay

you

or

anyone

else

a

salary

expenses

or

benefits

you

must

register

the

company

as

an

employer

The

company

must

take

Income

Tax

and

National

Insurance

contributions

from

your

salary

payments

and

pay

these

to

HM

Revenue

and

Customs

HMRC

along

with

employers

National

Insurance

contributions

If

you

or

one

of

your

employees

make

personal

use

of

something

that

belongs

to

the

business

you

must

report

it

as

a

benefit

and

pay

any

tax

due

Dividends

A

dividend

is

a

payment

a

company

can

make

to

shareholders

if

it

has

made

a

profit

You

can

not

count

dividends

as

business

costs

when

you

work

out

your

Corporation

Tax

Your

company

must

not

pay

out

more

in

dividends

than

its

available

profits

from

current

and

previous

financial

years

You

must

usually

pay

dividends

to

all

shareholders

To

pay

a

dividend

you

must

hold

a

directors

meeting

to

declare

the

dividend

keep

minutes

of

the

meeting

even

if

you

’re

the

only

director

Dividend

paperwork

For

each

dividend

payment

the

company

makes

you

must

write

up

a

dividend

voucher

showing

the

date

company

name

names

of

the

shareholders

being

paid

a

dividend

amount

of

the

dividend

You

must

give

a

copy

of

the

voucher

to

recipients

of

the

dividend

and

keep

a

copy

for

your

company

’s

records

Tax

on

dividends

Your

company

does

not

need

to

pay

tax

on

dividend

payments

But

shareholders

may

have

to

pay

Income

Tax

if

they

’re

over

Directors

loans

If

you

take

more

money

out

of

a

company

than

you

’ve

put

in

and

it

’s

not

salary

or

dividend

it

’s

called

a

directors

loan

If

your

company

makes

directors

loans

you

must

keep

records

of

them

There

are

also

some

detailed

tax

rules

about

how

directors

loans

are

handled

Company

changes

you

must

report

You

must

report

certain

changes

to

Companies

House

Changing

your

company

’s

registered

office

address

You

must

tell

Companies

House

if

you

want

to

change

your

company

’s

registered

office

address

If

the

change

is

approved

they

will

tell

HM

Revenue

and

Customs

HMRC

Your

company

’s

new

registered

office

address

must

be

in

the

same

part

of

the

UK

that

the

company

was

registered

incorporated

For

example

if

your

company

was

registered

in

England

and

Wales

the

new

registered

office

address

must

be

in

England

or

Wales

Your

address

will

not

officially

change

until

Companies

House

has

registered

it

Other

changes

you

must

report

You

must

tell

HMRC

if

your

business

contact

details

change

for

example

your

name

gender

business

name

or

your

personal

or

trading

address

you

appoint

an

accountant

or

tax

adviser

You

must

tell

Companies

House

within

days

if

you

make

changes

to

the

address

where

you

keep

your

records

and

which

records

you

keep

there

directors

or

their

personal

details

like

their

address

people

with

significant

control

PSC

or

their

personal

details

like

a

new

address

company

secretaries

appointing

a

new

one

or

ending

an

existing

one

’s

appointment

You

must

tell

Companies

House

within

a

month

if

you

issue

more

shares

in

your

company

How

to

report

changes

to

Companies

House

You

can

use

the

Companies

House

online

service

fill

in

and

send

paper

forms

Changes

that

shareholders

must

approve

You

may

need

to

get

shareholders

to

vote

on

the

decision

if

you

want

to

change

the

company

name

remove

a

director

change

the

company

’s

articles

of

association

This

is

called

passing

a

resolution

Most

resolutions

will

need

a

majority

to

agree

called

an

ordinary

resolution

Some

might

require

a

majority

called

a

special

resolution

Companies

House

has

more

details

about

the

types

of

changes

and

resolutions

you

must

report

to

them

Your

new

company

name

will

not

take

effect

until

it

’s

registered

by

Companies

House

they

’ll

tell

you

when

this

happens

Shareholder

voting

When

you

’re

working

out

whether

you

have

a

majority

count

the

number

of

shares

that

give

the

owner

the

right

to

vote

rather

than

the

number

of

shareholders

You

do

not

necessarily

need

to

have

a

meeting

of

shareholders

to

pass

a

resolution

If

the

right

amount

of

shareholders

have

told

you

they

agree

you

can

confirm

the

resolution

in

writing

But

you

must

write

to

all

shareholders

letting

them

know

about

the

decision

Company

and

accounting

records

You

must

keep

records

about

the

company

itself

financial

and

accounting

records

You

can

hire

a

professional

for

example

an

accountant

to

help

with

your

tax

HM

Revenue

and

Customs

HMRC

may

check

your

records

to

make

sure

you

’re

paying

the

right

amount

of

tax

Records

about

the

company

You

must

keep

details

of

directors

shareholders

and

company

secretaries

the

results

of

any

shareholder

votes

and

resolutions

promises

for

the

company

to

repay

loans

at

a

specific

date

in

the

future

debentures

and

who

they

must

be

paid

back

to

promises

the

company

makes

for

payments

if

something

goes

wrong

and

it

’s

the

company

’s

fault

indemnities

transactions

when

someone

buys

shares

in

the

company

loans

or

mortgages

secured

against

the

company

’s

assets

You

must

tell

Companies

House

if

you

keep

the

records

somewhere

other

than

the

company

’s

registered

office

address

Register

of

people

with

significant

control

You

must

also

keep

a

register

of

people

with

significant

control

PSC

Your

PSC

register

must

include

details

of

anyone

who

has

more

than

shares

or

voting

rights

in

your

company

can

appoint

or

remove

a

majority

of

directors

can

influence

or

control

your

company

or

trust

You

still

need

to

keep

a

record

if

there

are

no

people

with

significant

control

Read

more

guidance

on

keeping

a

PSC

register

if

your

company

’s

ownership

and

control

is

not

simple

Accounting

records

You

must

keep

accounting

records

that

include

all

money

received

and

spent

by

the

company

including

grants

and

payments

from

coronavirus

support

schemes

details

of

assets

owned

by

the

company

debts

the

company

owes

or

is

owed

stock

the

company

owns

at

the

end

of

the

financial

year

the

stocktakings

you

used

to

work

out

the

stock

figure

all

goods

bought

and

sold

who

you

bought

and

sold

them

to

and

from

unless

you

run

a

retail

business

You

must

also

keep

any

other

financial

records

information

and

calculations

you

need

to

prepare

and

file

your

annual

accounts

and

Company

Tax

Return

This

includes

records

of

all

money

spent

by

the

company

for

example

receipts

petty

cash

books

orders

and

delivery

notes

all

money

received

by

the

company

for

example

invoices

contracts

sales

books

and

till

rolls

any

other

relevant

documents

for

example

bank

statements

and

correspondence

You

can

be

fined

by

HMRC

or

disqualified

as

a

company

director

if

you

do

not

keep

accounting

records

How

long

to

keep

records

You

must

keep

records

for

years

from

the

end

of

the

last

company

financial

year

they

relate

to

or

longer

if

they

show

a

transaction

that

covers

more

than

one

of

the

company

’s

accounting

periods

the

company

has

bought

something

that

it

expects

to

last

more

than

years

like

equipment

or

machinery

you

sent

your

Company

Tax

Return

late

HMRC

has

started

a

compliance

check

into

your

Company

Tax

Return

If

your

records

are

lost

stolen

or

destroyed

If

you

can

not

replace

your

records

after

they

were

lost

stolen

or

destroyed

you

must

do

your

best

to

recreate

them

tell

your

Corporation

Tax

office

straight

away

include

this

information

in

your

Company

Tax

Return

Confirmation

statement

annual

return

You

need

to

check

that

the

information

Companies

House

has

about

your

company

is

correct

every

year

This

is

called

a

confirmation

statement

previously

an

annual

return

Check

your

company

’s

details

You

need

to

check

the

following

the

details

of

your

registered

office

directors

secretary

and

the

address

where

you

keep

your

records

your

statement

of

capital

and

shareholder

information

if

your

company

has

shares

your

SIC

code

the

number

that

identifies

what

your

company

does

your

register

of

people

with

significant

control

PSC

Check

the

Companies

House

register

Send

your

confirmation

statement

Send

your

confirmation

statement

online

or

by

post

It

costs

to

file

your

confirmation

statement

online

and

by

post

If

you

need

to

report

changes

You

can

report

changes

to

your

statement

of

capital

shareholder

information

and

SIC

codes

at

the

same

time

You

can

not

use

the

confirmation

statement

to

report

changes

to

your

company

’s

officers

the

registered

office

address

the

address

where

you

keep

your

records

people

with

significant

control

You

must

file

those

changes

separately

with

Companies

House

When

it

’s

due

Your

confirmation

statement

is

due

usually

a

year

after

either

the

date

your

company

incorporated

the

date

you

filed

your

last

annual

return

or

confirmation

statement

You

can

file

your

confirmation

statement

up

to

days

after

the

due

date

Sign

up

to

get

an

email

reminder

when

your

confirmation

statement

is

due

You

can

be

fined

up

to

and

your

company

may

be

struck

off

if

you

do

not

send

your

confirmation

statement

Signs

stationery

and

promotional

material

Signs

You

must

display

a

sign

showing

your

company

name

at

your

registered

company

address

and

wherever

your

business

operates

If

you

’re

running

your

business

from

home

you

do

not

need

to

display

a

sign

there

The

sign

must

be

easy

to

read

and

to

see

at

any

time

not

just

when

you

’re

open

Stationery

and

promotional

material

You

must

include

your

company

’s

name

on

all

company

documents

publicity

and

letters

On

business

letters

order

forms

and

websites

you

must

show

the

company

’s

registered

number

its

registered

office

address

where

the

company

is

registered

England

and

Wales

Scotland

or

Northern

Ireland

the

fact

that

it

’s

a

limited

company

usually

by

spelling

out

the

company

’s

full

name

including

Limited

or

Ltd

If

you

want

to

include

directors

names

you

must

list

all

of

them

If

you

want

to

show

your

company

’s

share

capital

how

much

the

shares

were

worth

when

you

issued

them

you

must

say

how

much

is

paid

up

owned

by

shareholders

There

are

different

rules

for

what

you

need

to

include

on

invoices


Overview

As

an

employer

providing

loans

to

your

employees

or

their

relatives

you

have

certain

National

Insurance

and

reporting

obligations

What

’s

included

There

are

different

rules

for

providing

beneficial

loans

which

are

interest

free

or

at

a

rate

below

HMRC

’s

official

interest

rate

providing

loans

you

write

off

charging

a

director

’s

personal

bills

to

their

loan

account

within

the

company

Beneficial

loans

The

rules

cover

beneficial

loans

advanced

arranged

facilitated

guaranteed

or

taken

over

from

someone

else

by

you

the

employer

a

company

or

partnership

you

control

a

company

or

partnership

that

controls

your

business

a

person

with

a

material

interest

in

your

business

See

the

technical

guidance

for

what

to

do

in

more

complicated

situations

eg

if

you

use

third

party

arrangements

to

make

a

loan

to

your

employee

What

's

exempt

You

might

not

have

to

report

anything

to

HMRC

or

pay

tax

and

National

Insurance

on

some

types

of

beneficial

loans

This

includes

loans

you

provide

in

the

normal

course

of

a

domestic

or

family

relationship

as

an

individual

not

as

a

company

you

control

even

if

you

are

the

sole

owner

and

employee

with

a

combined

outstanding

value

to

an

employee

of

less

than

throughout

the

whole

tax

year

for

to

to

an

employee

for

a

fixed

and

invariable

period

and

at

a

fixed

and

invariable

rate

that

was

equal

to

or

higher

than

HMRC

’s

official

interest

rate

when

the

loan

was

taken

out

under

identical

terms

and

conditions

to

the

general

public

as

well

this

mostly

applies

to

commercial

lenders

that

are

qualifying

loans

meaning

all

of

the

interest

qualifies

for

tax

relief

see

the

technical

guidance

for

an

explanation

of

this

complex

area

using

a

director

’s

loan

account

as

long

as

it

’s

not

overdrawn

at

any

time

during

the

tax

year

Salary

sacrifice

arrangements

You

do

have

to

report

loans

to

your

employees

or

their

relatives

if

they

’re

made

as

part

of

a

salary

sacrifice

arrangement

What

to

report

and

pay

If

the

loans

you

provide

are

n’t

exempt

you

have

to

report

the

costs

to

HMRC

and

deduct

or

pay

National

Insurance

on

them

Beneficial

loans

If

you

or

your

business

provides

a

beneficial

loan

as

defined

in

the

overview

you

’ll

need

to

report

it

on

form

pay

Class

National

Insurance

on

the

value

of

the

benefit

Loans

you

write

off

You

always

have

to

report

and

pay

on

loans

to

employees

that

you

write

off

whether

or

not

they

are

classed

as

beneficial

loans

You

must

report

it

on

form

deduct

and

pay

Class

National

Insurance

but

not

PAYE

tax

on

the

value

of

the

benefit

Work

out

the

value

You

can

work

out

the

value

of

loans

using

HMRC

’s

PAYE

Online

or

commercial

payroll

software

You

can

also

work

out

the

value

manually

on

working

sheet

Salary

sacrifice

arrangements

If

the

cost

of

the

loan

is

less

than

the

amount

of

salary

given

up

report

the

salary

amount

instead

These

rules

do

n’t

apply

to

arrangements

made

before

April

check

when

the

rules

will

change

Technical

guidance

The

following

guides

contain

more

detailed

information

beneficial

loans

contents

page

Class

National

Insurance

loans

written

off

loans

released

or

written

off

making

a

loan

loan

made

by

third

party

contrasting

treatment

where

some

or

part

of

the

interest

would

qualify

for

relief

director

’s

loan

accounts

overview

director

’s

loan

accounts

whether

withdrawals

are

loans

or

earnings

beneficial

loan

arrangements

chapter

of

Expenses

and

benefits

a

tax

guide


When

a

payment

becomes

late

You

can

claim

interest

and

debt

recovery

costs

if

another

business

is

late

paying

for

goods

or

a

service

If

you

agree

a

payment

date

it

must

usually

be

within

days

for

public

authorities

or

days

for

business

transactions

You

can

agree

a

longer

period

than

days

for

business

transactions

but

it

must

be

fair

to

both

businesses

If

you

do

not

agree

a

payment

date

the

law

says

the

payment

is

late

days

after

either

the

customer

gets

the

invoice

you

deliver

the

goods

or

provide

the

service

if

this

is

later

Interest

on

late

commercial

payments

The

interest

you

can

charge

if

another

business

is

late

paying

for

goods

or

a

service

is

statutory

interest

this

is

plus

the

Bank

of

England

base

rate

for

business

to

business

transactions

You

can

not

claim

statutory

interest

if

there

’s

a

different

rate

of

interest

in

a

contract

You

can

not

use

a

lower

interest

rate

if

you

have

a

contract

with

public

authorities

Check

the

current

Bank

of

England

base

rate

and

previous

rates

Send

a

new

invoice

if

you

decide

to

add

interest

to

the

money

you

’re

owed

Claim

debt

recovery

costs

on

late

payments

You

can

also

charge

a

business

a

fixed

sum

for

the

cost

of

recovering

a

late

commercial

payment

on

top

of

claiming

interest

from

it

The

amount

you

’re

allowed

to

charge

depends

on

the

amount

of

debt

You

can

only

charge

the

business

once

for

each

payment

Amount

of

debt

What

you

can

charge

Up

to

to

or

more

These

amounts

are

set

by

late

payment

legislation

If

you

’re

a

supplier

you

can

also

claim

for

reasonable

costs

each

time

you

try

to

recover

the

debt

Read

more

on

recovering

debt


Overview

You

can

apply

to

the

court

to

close

or

wind

up

a

company

if

it

can

not

pay

its

debts

This

is

also

known

as

compulsory

liquidation

To

wind

up

a

company

you

must

be

owed

or

more

be

able

to

prove

that

the

company

can

not

pay

you

You

need

to

fill

in

forms

and

send

them

to

the

right

court

to

apply

to

wind

up

a

company

Your

application

to

the

court

is

known

as

a

winding

up

petition

If

you

’re

successful

the

company

assets

are

sold

any

legal

disputes

are

settled

the

company

collects

money

it

’s

owed

funds

are

paid

to

you

and

any

other

creditors

You

might

not

get

all

or

any

of

the

money

you

’re

owed

There

are

also

other

ways

to

recover

money

that

you

’re

owed

You

can

get

a

debt

specialist

like

a

solicitor

to

help

you

recover

debt

Fees

The

fees

are

court

fees

petition

deposit

to

manage

the

winding

up

You

might

be

able

to

get

the

fees

back

if

the

company

can

afford

to

repay

them

Scottish

companies

There

are

different

rules

on

winding

up

a

company

in

Scotland

Apply

You

must

send

the

right

form

to

the

court

before

they

can

deal

with

your

petition

You

might

want

to

get

legal

help

to

make

sure

you

submit

your

petition

correctly

Forms

Fill

in

form

Comp

and

make

copies

You

’ll

need

to

make

sure

the

company

’s

details

are

correct

state

if

any

European

Community

regulations

apply

this

applies

if

the

company

is

registered

in

or

does

business

in

England

and

Wales

ask

the

court

to

restore

the

company

if

it

’s

been

dissolved

before

winding

up

the

company

You

need

to

provide

evidence

the

company

owes

you

money

for

example

a

statutory

demand

include

the

amount

and

date

the

demand

was

served

a

court

judgment

include

the

amount

awarded

and

your

costs

and

interest

the

date

of

the

judgment

the

court

name

and

case

number

You

’ll

also

need

to

fill

in

form

Comp

confirming

the

details

of

your

petition

Where

to

send

the

petition

Where

you

send

the

petition

depends

on

how

much

paid

up

share

capital

the

company

has

you

can

find

this

on

the

Companies

House

register

Paid

up

share

capital

is

or

more

Submit

the

petition

online

It

’ll

go

to

the

High

Court

You

pay

the

court

fees

online

but

not

the

petition

deposit

You

’ll

get

an

email

after

you

apply

telling

you

how

to

pay

the

deposit

Paid

up

share

capital

is

under

You

’ll

need

to

find

the

court

nearest

to

the

company

’s

registered

office

the

court

must

deal

with

bankruptcy

Submit

the

petition

online

if

it

’s

one

of

these

courts

Admiralty

and

Commercial

Court

Chancery

Division

Companies

Court

High

Court

including

Bankruptcy

Court

London

Mercantile

Court

Rolls

Building

You

pay

the

court

fees

online

but

not

the

petition

deposit

You

’ll

get

an

email

after

you

apply

telling

you

how

to

pay

the

deposit

If

it

was

another

court

you

’ll

need

to

submit

the

petition

by

post

You

can

pay

the

fees

by

cash

postal

order

or

a

building

society

bank

or

solicitor

’s

cheque

made

payable

to

HM

Courts

and

Tribunals

Service

After

you

apply

You

’ll

get

a

copy

of

your

petition

from

the

court

after

you

pay

the

petition

deposit

You

must

deliver

serve

it

to

a

company

director

or

employee

provide

a

certificate

of

service

to

the

court

confirming

that

the

petition

has

been

served

on

the

company

You

can

get

a

process

server

to

help

you

your

solicitor

can

arrange

this

You

can

serve

the

petition

by

attaching

it

to

the

company

’s

front

door

or

leaving

it

at

the

office

if

you

can

not

serve

it

in

person

The

day

after

you

serve

the

petition

send

a

copy

to

the

relevant

liquidator

administrative

receiver

administrator

or

supervisor

if

the

company

is

involved

in

voluntary

liquidation

administrative

receivership

an

administration

order

a

voluntary

arrangement

The

court

hearing

If

the

court

accepts

your

petition

they

’ll

arrange

a

date

for

a

hearing

Announce

the

hearing

When

you

’re

given

a

date

for

the

hearing

you

must

formally

announce

when

and

where

it

will

take

place

At

least

working

days

before

the

hearing

place

an

advert

in

The

Gazette

to

say

the

petition

has

been

served

Send

a

copy

of

the

advert

and

form

Comp

to

the

court

at

least

working

days

before

the

hearing

Give

a

list

of

everyone

who

will

be

attending

to

the

court

by

on

the

day

before

the

hearing

The

advert

must

state

that

you

’ve

presented

a

petition

to

wind

up

the

company

your

name

and

address

your

solicitor

’s

name

and

address

if

you

have

one

the

date

you

presented

the

petition

the

court

where

the

hearing

will

take

place

that

anyone

wanting

to

come

to

the

hearing

must

give

notice

After

the

hearing

If

the

petition

is

successful

the

court

will

issue

a

winding

up

order

The

court

will

put

an

official

receiver

in

charge

of

the

liquidation

They

’ll

start

the

process

of

turning

the

company

’s

assets

into

money

that

can

be

used

to

pay

the

company

’s

debts

Other

creditors

can

register

to

claim

the

money

they

’re

owed