Written by one of the country's leading tax writers, this second edition of the highly successful 'Understanding Tax for Small Businesses' is aimed at small businesses and fills a conspicuous gap in the market. Following the business lifecycle, it provides highly relevant information and advice on the real events that business people experience, whether self-employed or running a company.



Throughout this book the reader gains a basic understanding of tax principles, the operation of the tax system and knows when to ask for help, rather than being told how to fill in forms or 'save' tax. It empowers the reader to transact with an accountant or the tax authorities on a more equal footing.




An appendix provides a matrix for readers to complete with details of the new tax rates following each Finance Act, together with details of where this information can be sourced. It also provides links to other available information - building on free information available online, particularly from HM Revenue and Customs, there will be frequent Internet links to help the reader navigate the wealth of tax information available.




New material covered in this second edition includes:



- The abolition of the 10p rate of tax from 6 April 2008 and the new 10% rate for some savings income.



- Changes in the corporation tax rates.



- Significant reforms to the capital gains tax regime including the abolition of taper relief and indexation allowance.



- The new entrepreneurs' relief - of great significance to small businesses people.



- The new style, simplified income tax return; new filing dates for returns; fines.

Table of Contents:
1. Introduction:What the book does and doesn’t do How to handle tax matters (self or accountant), distinction between routine compliance and planning (part of proactive business management).
2.Which taxes do businesses pay? All the different taxes - direct, indirect, National Insurance, local government. Checklist setting out the taxes which apply to each type of business. Summary of key taxes affecting businesses, what is exempt, when and ho
3.How the tax system works: The role of the Chancellor, annual Budgets, tax years, dates, how tax is charged and collected, self-assessment, role of HMRC, tax returns, interest, sanctions, enquiries, avoidance and evasion, overseas matters.
4. Starting a business: What tax action do you need to take at the outset, choice between being self-employed or having a company table of tax pros and cons of trading as a company, tax consequences of financing the start-up (loans, business angels), notifying HMRC (income tax a
5.Profits: Choice of year end, working out trading income, losses, tax deductions. Includes simple calculations and charts.
6. Losses: Different types, using them to save tax.
7. Equipment: Capital allowances - what they are, how they are calculated, all the different types.
8. Employees: Who is an employee, running a PAYE scheme, income tax, National Insurance (employees and employers),minimum wage, student loans, sick pay, maternity, paternity and adoption pay, benefits in kind, special situations (building sub-contractors)
9.Premises: Buying, stamp duty land tax, financing, business rates, selling (cross-reference to selling the business).
10.VAT: What it is, different rates on different items, how it is calculated, records, VAT returns, schemes,inspections.
11. Pensions and insurance: Providing your own pension, outline of the rules for tax relief, payments and contributions.
12.Incorporating a business Changing from being self-employed to a limited company and company director.
13.Closing a business: Tax consequences of stopping trading, income tax VAT de-registration, notifying HMRC re employees, consequences for employees such as termination payments and redundancy.
14. Selling a business: Selling business assets and the business. 15: Capital gains tax: what it is charged on, exemptions, taper relief, how to defer capital gains tax (rollover relief), simple case study and computation.
15. Passing on a business: What happens to your business if you die? Outline of inheritance tax and consequences for businesses.
16. Putting it all together: Detailed case study and tax computations, which forms need to be completed.
17. Appendices
Tax rates and allowances: Summary in table format with blank columns for the next 2-3 years so that the reader can update. Information on where and when to find the updated figures.
Key dates
Glossary
Quick definitions of the key phrases.
Further information